Starting a business in the Philippines? You might want to consider a One Person Corporation (OPC). Under the Revised Corporation Code (RA 11232), a single individual can now establish a corporation—enjoying the benefits of a corporate entity without the complexities of a traditional corporation.

Why Choose an OPC?

The first reason is Limited Liability. Your personal assets are protected from corporate debts for as long as you make a clear distinction between your personal assets and the assets of the corporation.

The second reason is Simplified Management. There is no need for a complex board structure; you make all the decisions as the sole stockholder and director. You are the President of the corporation.

The second reason is there is No Minimum Capital Requirement. Unlike traditional corporations, OPCs can start with any capital amount. This enables SMSEs to incorporate and take advantage of the benefits of corporate existence.

The third reason is Greater Flexibility. There is no need to adopt corporate bylaws, and decision-making is streamlined.

The fourth reason is Succession Planning. You can appoint a nominee and an alternate nominee to ensure business continuity.

Lastly, there are Potential Tax Benefits. Corporations may enjoy tax advantages compared to sole proprietorships.

Is an OPC Right for You?

If you’re an entrepreneur, consultant, or freelancer looking to scale your business while minimizing personal liability, an OPC could be a great choice! However, understanding your legal responsibilities is crucial—certain liabilities and corporate compliance requirements still apply. Consult with a lawyer to ensure a smooth and legally sound registration process.