Santos, Pauline M.

Law on Business Organizations

MWF/6:00PM 7:00PM/118

In Cambodia, in order to start-up a business the owners are required to

deposit the legally required initial capital in the bank, and acquire a proof of
deposit. Then they should conduct an initial check on the uniqueness of the
business, and come up with a business name approval at the business
registration department. Then they have to incorporate, and obtain a seal,
and have the company registered at the Ministry of Labor in order to
commence operation.
In Laos, those who want to start up a business shall accomplish all the
necessary legal application and documents. The business shall be registered
to its respective ministry depending on its nature; agricultural or industrial.
Initial capital ranges from 1 Million to 50 Million. These requirements are not
necessary with partnerships in the country because they assume unlimited
liabilities.
In Malaysia, before starting a business, there must be at least two
shareholders, two resident directors, and an executive secretary, all of which
should be of legal age, and the directors satisfying the following
requirements: (1) must be a Malaysian citizen; (2) a Malaysian permanent
resident; and (3) an employment pass holder.
In the Philippines, similar to a local corporation, foreign corporations
are required to report at the Securities and Exchange Commission, and other
government agencies before commencing corporate operations. A foreign
business liabilities, if it is a branch, shall also be assumed by the head office
of the business. The minimal requirement for starting up business in this
country is USD200,000 or its equivalent unless the branch qualifies as an
export market, where only PHP5,000 is the required minimum initial capital.
For Thailand, there must be initially, at least, three promoters to
prepare the memorandum of association for the company on where it will
operate. Companies are given the choice to set up a business as a subsidiary
or a branch. However, if the companys operation falls within the restricted
list, it shall accomplish a permit; otherwise it cannot pursue its operation.
In Singapore, requirements are a bit similar to that of Malaysias.
Businesses looking to operate in the country must have at least one

shareholder, regardless if its foreign, the country allows 100% foreign

control, and one resident director satisfying the similar requirements as with
Malaysia: (1) must be a Singapore citizen; (2) must be a Singapore
permanent resident; (3) must be an employment pass holder; (4) a
dependent pass holder; and (5) an approval-in-principle pass holder.
In Vietnam, those who would like to start-up a business in the country
must undergo a registration or evaluation licensing process depending on the
amount of their initial capital. Depending on the nature of its operation, the
companies may or may not receive its operating licenses.
In Brunei, companies should conduct an initial check on the uniqueness
of the business, and come up with a business name approval at the business
registration department. They should also accomplish the Articles of
Association, file the return allotment shares, make a company seal, and
register in the finance ministry.
In Indonesia, initially, there must be at least two shareholders. These
shareholders must accomplish the Deed of Establishment. This deed must be
submitted to the Ministry of Law. Upon approval, the company will then
obtain its legal entity status. Depending on the nature of operation,
restrictions and limitations may be imposed. The company must have its
board of directors, and board of commissioners.
In Myanmar, foreign companies and local companies are allowed to
start-up a business in the country, however, amounts of initial capital
investments differ. There are no requirements as to nationality, as long as
there must be at least two shareholders.
In totality, based on the surface analysis, all businesses are under the
operation the Law of the respective countries. They are to abide with it in
order to commence operation, and to acquire legal entity status. They should
all accomplish application and legal documents before being recognized.
Also, limitations and restrictions are imposed to these entities with
accordance, still, to the law; violation of which are subject to sanctions in
each country.