What are the steps of forming a corporation?

Aside from the articles of incorporation, other required documents must be gathered, especially for corporations governed by special laws, such as educational corporations requiring a recommendation from the Department of Education.

The second step of incorporation is filing the articles of incorporation and all necessary documents with the Securities and Exchange Commission (SEC), along with paying the required registration and incorporation fees.

Attorney Marie Chris Bataan Lasko introduces the topic of forming a corporation, indicating that the video will simplify the legal processes involved in under 10 minutes.

The video outlines the three main steps to forming a corporation: promotion, incorporation, and formal organization and commencement of business.

Promotion involves promoters bringing together individuals who may form the corporation. However, this step can be skipped if incorporators have already decided to form the corporation among themselves.

Incorporation refers to the process of drafting documents and getting certifications to establish the corporation. The first part of this step involves drafting and executing the articles of incorporation, for which a prescribed form is available on the SEC website.

The final step of incorporation is waiting for the SEC to issue the certificate of incorporation. The SEC reviews submitted requirements to ensure substantial compliance, not strict compliance, with legal requirements.

The issuance of the certificate of incorporation brings the corporation into existence. Section 18 of the Revised Corporation Code states that corporate existence and juridical personality commence from the date the SEC issues this certificate.

After the corporation is formally formed with the issuance of the certificate, the final step involves formal organization, electing the board of directors, and commencing business operations.

A quick recap of the stages of creating a corporation: promotion, incorporation (including its steps), and organization along with commencement of business operations.