Form of Ownership
A corporation is a legal entity, organized under state laws, whose investors purchase shares of stock as evidence of ownership in it.
The advantages of the corporation structure are as follows:
Limited liability. The shareholders of a corporation are only liable up to the amount of their investments. The corporate entity shields them from any further liability.
Source of capital. A publicly-held corporation in particular can raise substantial amounts by selling shares or issuing bonds.
Ownership transfers. It is not especially difficult for a shareholder to sell shares in a corporation, though this is more difficult when the entity is privately-held.
Perpetual life. There is no limit to the life of a corporation, since ownership of it can pass through many generations of investors.
The disadvantages of a corporation are as follows:
Double taxation. Depending on the type of corporation, it may pay taxes on its income, after which shareholders pay taxes on any dividends received, so income can be taxed twice.
Excessive tax filings. Depending on the kind of corporation, the various types of income and other taxes that must be paid can require a substantial amount of paperwork.
Independent management. If there are many investors having no clear majority interest, the management team of a corporation can operate the business without any real oversight from the owners.
A private company has a small group of investors who are unable to sell their shares to the general public. A public company has registered its shares for sale with the Securities and Exchange Commission (SEC), and may also have listed its shares on an exchange, where they can be traded by the general public. The requirements of the SEC and the stock exchanges are rigorous, so comparatively few corporations are publicly-held.
Documentary requirements for stock corporation
Name Verification Slip (may be secured online or at SEC Name Verification Unit)
Articles of Incorporation (AI) and By-laws (BL)
Joint affidavit of two incorporators to change corporate name (not required if already stated in AI) Additional Requirements
Endorsement/clearance from other government agencies, if applicable
Clearance from other Department of the Commission*
For Corporations with more than 40% foreign equity: Application Form for registration under the Foreign Investments Act of 1991 (R.A. 7042, as amended)
Endorsement/clearance from: (a) Philippine Economic Zone Authority (PEZA) for applicant under R.A. 7916, (b) Subic Bay Metropolitan Authority (SBMA) or Clark Development Corporation (CDC) for applicant under R.A. 7227 and (c) Cagayan Economic Zone Authority (CEZA) for applicant under R.A. 7922
Recruitment ; Program
Define the Job Before Hiring an Employee
Hiring the right employee starts with a job analysis for you to be able to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job. The information from the job analysis is fundamental to developing the job description for the new employee. It will assist you to plan your recruiting strategy for hiring the right employee.
Plan Your Employee Recruiting Strategy
With the job description in hand, set up a recruiting planning meeting that involves the key employees who are hiring the new employee. The hiring manager is crucial to the planning. At this meeting, your recruiting strategy is planned and the execution begins.
Use a Checklist for Hiring an Employee
This checklist for hiring an employee will help you systematize your process for hiring an employee. Whether it’s your first employee or one of many employees you are hiring. It keeps your recruiting efforts on track and communicates progress to interested employees and the hiring manager.
Recruit the Right Candidates When Hiring an Employee
You can develop relationships with potential candidates long before you need them when hiring an employee. These ideas will also help you in recruiting a large pool of candidates when you have a current position available. The more qualified candidates you can develop when hiring an employee, the more likely you are to locate a qualified potential employee.
Review Credentials and Applications Carefully
The work of reviewing resumes, cover letters, job applications, and job application letters starts with a well-written job description. You must require all applicants to follow the exact same structured hiring process.
These are the necessary documents to be submitted:
Letter of Intent
Transcript of Records
Form of Ownership