The Articles of Incorporation are a series of formal documents submitted to government agencies to
legally document the establishment of a company. The Articles of Incorporation usually include relevant
information such as company name, address, approved beneficiaries, and the amount and type of
shares to be issued. The Articles of Incorporation are the documents required to establish a corporation
in the Philippines. The company is a legally created man-made person and must be registered with the
Securities and Exchange Commission (“SEC”). A company is established after submitting its articles of
incorporation to the SEC and the SEC issues a certificate of establishment.
A stock corporations has equity capital that is split into shares with or without par value. Nominal value
is the minimum subscription or issue price of a company’s stock. A joint-stock company has the
authority to carry out income-generating activities and distribute dividends to shareholders. Stock
companies are generally not obliged to hold the minimum approved capital. Shares may not be issued
below par or issue price. Non-stock corporations have no shares and some of their income cannot be
distributed as dividends to their members, trustees or officers. The profits that a stock company
generates in the course of its business can only be used to promote the purpose for which the stock
company was established, if necessary or convenient. Non-corporations are founded or organized for
non-profit, religion, education, specialty, culture, brotherhood, literature, science, society, public
services, or similar purposes such as the Chamber of Commerce, industry, agriculture. A combination of
them. A non-corporation shall not contain any purpose that would change or contradict its character as
