REM 102

Assignment # 1

1. Can the President of an OPC be the treasurer? Why?

According to Section 9 of SEC Memorandum Circular No. 7 Series of 2019, the single stockholder shall
not be appointed as Corporate Secretary but may assume the role of a Treasurer.

In Section 10. Bond Requirement for the Self-Appointed Treasurer, the single stockholder who assumes
the position of the Treasurer shall post a surety bond to be computed based on the authorized capital
stock (ACS) of the OPC as shown in the Table below:

ACS Surety Bond Coverage

1.00 to 1,000,000 1,000,000.00

1,000,001.00 to 2,000,000.00 2,000,000.00
2,000,001.00 to 3,000,000.00 3,000,000.00
3,000,001.00 to 4,000,000.00 4,000,000.00
4,000,001.00 to 5,000,000.00 5,000,000.00
P 5,000,001.00 and above = Amount of surety bond coverage shall be equal to the OPC’s ACS

*Subject to renewal every two (2) years or as may be required, upon review of the annual
submission of the Audited Financial Statements/Financial Statements certified under oath by
the company’s President and Treasurer.

**The bond is a continuing requirement for so long as the single stockholder is the self-
appointed Treasurer of the OPC.

***The bond may be cancelled upon proof of appointment of another person as the Treasurer
and Filing of Amended Form for Appointment of Officers.

2. Can a foreigner register in the Philippines as an OPC?

Yes, One Person Corporation is applicable to all, in general, -- locals and foreigners who wanted to invest
in the Philippines in such allowed areas under foreign investment rules in the Philippines such as in
business process outsourcing (KPO), rendering services, trading goods, or manufacturing.

A foreigner may establish an OPC in the Philippines, subject to any applicable capital requirements and
any statutory restrictions on foreign equity in certain investment sectors.
 3. Can a Real Estate Brokerage be registered as an OPC with the Broker as the owner? Why?

Professionals cannot register an OPC for their respective professions. For example, an accountant
cannot put up an OPC to practice accountancy. This means if you are a Broker, you cannot be under OPC
because you are a professional practicing real estate.

4. Can a Real Estate Brokerage be registered as a Cooperative?

From the description of Cooperative itself, it should be a group of persons, controlled by its members.
So, a single broker cannot be registered as a Cooperative.