Thought I’d share something I’m working on today.
I was doing my powerpoint for a talk
I will be giving this Friday for a private event. The title of the talk is “Initiate” where I teach participants the proper mindset, the options and the next action steps for putting up a business, particularly a Consultancy and Training venture. There’s a lot of planning that comes with putting up a business. There’s a lot riding on making the right choice because the legal structure determines the actions you are allowed to make during the life of your business. I’m going to be guiding them on analyzing the options available.
In addition, there was a major update to the Corporation Code recently. There’s a new legal entity now on the table available for use. This is what I’ll share with you today.
A new way to put up a corporation
The new option is the one-man corporation. This is a fantastic update and let me tell you why. Before, the minimum number of people needed to put up a corporation is 5 people. Some clients complain that they are concerned about diluting the ownership of their corporation by including other people in the mix. In fact, for some clients, they find it offensive because they are the ones running the business from the start, but now, they are forced to put in people who may have had no contribution in the business’ success to this point. Now, they get to call themselves co-owners of their venture.
Now, the law allows lone founders to take advantage of the protections and benefits of a corporate structure without compromising the ownership. They can finally run the show themselves without fear of other people interfering in their decisions and management. There are some logistical considerations though. The SEC requires you to put up a minimum capitalization of Php 1 Million. And this has to be fully paid up before you commence.
A bit heavy? Yes. The SEC wanted to make sure that only the people who were serious about their business would be able to avail of this new method.
When can we utilize this new method?
Well, the law has been issued but we have to wait for the Implementing Rules and Regulations (IRR) before we can apply. If you need help with this, consult your legal team.
Hope this update was useful for you. If you are interested in learning more about setting up and running Consulting and Training businesses, feel free to join me this Friday.
Hope to see you guys there!