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Capitalization

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1 Capitalization on Wed Nov 16, 2011 3:17 pm

circulatio2001


Arresto Menor
Dear Atty.,

We are starting a graphic design company and I would just like to ask
1) how much should be the authorized capital stock? 2) How much should be in the bank by the time we apply for our company's registration?
3) I understand there is a minimum amount for certain industries but what about a business that is not really inventory and capital equipment-intensive?
If we decide to increase the capitalization later on, how do we go about it?

Many thanks for your help.

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2 Re: Capitalization on Wed Nov 16, 2011 10:57 pm

attyLLL


moderator
i don't think there is any minimum requirement. the law requires P5,000 minimum.

how much will be the actual initial investment of the incorporators?


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3 Re: Capitalization on Thu Nov 17, 2011 10:34 am

circulatio2001


Arresto Menor
Thanks for the reply. Total investment by the incorporators at present will be around Php 50,000. We will use existing equipment (computers, printers for ex.). Most of their contributions will be in the form of designing, conceptualizing and client management. Also, how does one set the par value of their company's stock. Our articles were derived from a template and the assigned value on the sample document is Php 1.00 per share. Thanks again.

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4 Re: Capitalization on Sun Nov 20, 2011 12:06 pm

attyLLL


moderator
setting par value doesn't matter. it can be anything. I recommend P1.00 for easy computation.

you are allowed a minimum 25% subscribed, and of that subscribed, 25% paid up. so at 50,0000, you can go as high as P800k capitalization, BUT i recommend to stockholders that you be fully paid up.


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5 Re: Capitalization on Tue Nov 22, 2011 9:39 am

circulatio2001


Arresto Menor
If we decide to eventually increase capitalization, how do we go about it? Thanks.

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6 Re: Capitalization on Wed Nov 23, 2011 9:44 pm

attyLLL


moderator
you have to amend the articles. it's not easy so it's better to try to get it right during incorporation


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7 Re: Capitalization Today at 6:24 am

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