A one person corporation in the Philippines (OPC) is a convenient business structure for both experienced and fairly new entrepreneurs. With its limited liability, no minimum capital, and single stockholder requirement, an OPC can be registered fast. 

It’s also advantageous for foreign firms who want to quickly establish their presence in the country. Just take note that an OPC with foreign investors must be in industries that permit 100% foreign ownership, such as export, retail, and manufacturing.

That all said, it’s important to remember that running an OPC requires compliance with annual reportorial requirements—similar to other corporation types. These requirements are mandated by the Securities and Exchange Commission (SEC). 

It’s essential to know the reporting obligations of OPCs, so you can avoid penalties—and in more serious cases, unexpected suspensions. 

Here’s a helpful guide.

Your SEC filing requirements as an OPC

According to the Revised Corporation Code, you have four main filing requirements as the owner of an OPC:

1. Annual Financial Statements (AFS), which provides an overview of your corporation’s financial position– think of it as your business’s financial report card for the year. If your annual revenue exceeds Php 600,000, your AFS must be certified by an external Certified Public Accountant (CPA).

Generally, you’ll need to submit the AFS within 120 days after the end of your corporation’s fiscal year. To be sure, check with the SEC for the exact due date applicable to your company.

2. A report by the president, which should contain their comments, explanations, and observations regarding the auditor’s report about the AFS.

3. Related party transactions disclosure between the OPC and the single stockholder.

4. Additional reports required by the SEC, which may include:

• Officers’ Appointment Form, which includes details about your nominee and alternate nominee in case of death or incapacity. This should be submitted within 15 days of your business registration. If you made changes to the form, submission is 5 days from the effective date of changes.
  
• Surety bond for OPCs where the president is also the treasurer. The amount will depend on the authorized capital stock indicated in the OPC’s Articles of Incorporation. This is only required upon business registration.

💡Loft can help with your mandatory annual filings

The end of your company’s fiscal year signals the start of a very busy period poring through stacks of forms and documents. You know you don’t have to do it alone, right?

Working with Loft allows you to take a breather while ensuring 100% compliance with your company’s reportorial requirements. Our in-house corporate lawyer and team of compliance experts are at your disposal.

Call us at (63) 917 899 111 or message us at [email protected], so you don’t have to worry about corporate compliance in the Philippines. 

The real cost of non-compliance is more than just fines

The SEC is a strict enforcer of regulatory rules. A missed filing deadline can quickly snowball into costly fines. 

It’s even worse for repeat offenders, who might potentially face suspension or corporation dissolution. Take what happened in 2023, for instance, when over 20,000 companies risked losing their registration due to non-compliance. 

Simply put, non-compliance with reportorial requirements is an unnecessary risk that drains your company’s resources and reputation. 

Regular and timely submission of reporting requirements demonstrates accountability to relevant government agencies—most notably the SEC and the Bureau of Internal Revenue (BIR). 

Due diligence tips to help you stay on top of compliance

Running an OPC requires more attention to detail due to the higher degree of government oversight. These tips should help you manage your OPC efficiently while meeting legal requirements:

• Keep accurate financial records. This is essential for preparing your AFS. Consider using accounting software to track income, expenses, and other financial data. OPCs often outsource their bookkeeping to third-party service providers and CPAs, especially when it involves high-revenue financial years.
• Set up a compliance calendar. Set reminders for each filing due date and consider color-coding for critical versus optional reports. A little organization can go a long way. 
• Automate your reminders. There are several tools and apps you can use to automate compliance reminders. This way, you can stay proactive without remembering every little deadline.
• Bring in the pros. Working with a business compliance specialist or seasoned bookkeepers and accountants can be a game-changer. They’re experts on SEC/BIR requirements and can manage filings on your behalf.

Set up your OPC for success with Loft

Running a one person corporation in the Philippines comes with its fair share of responsibilities, but staying compliant doesn’t have to be a headache. Think of it as building a rock-solid foundation for business growth. We can help with that.

Loft has an array of corporate compliance services for Philippine-registered corporations. We offer nominee director services, corporate secretary services, year-end audit assistance, and more. 

Fill up the form below to quickly sort out your corporation reporting requirements.

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