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CHAPTER 6
SOCIO-ECONOMIC FEASIBILITY
Corporations come to existence because of their main purpose, which is to
generate profits. They are constantly demanding to have legal rights to autonomy and
economic freedom. But as a consequence of these rights, corporations must also entitle
themselves to their moral rights, and if they have moral rights, they as well have
obligations connected with such rights.
Carbon Plus Corporation knows well the impact of their existence to the socioeconomic environment they are in. Carbon Plus Corporation is to develop moral
sensitivity and take their moral responsibilities seriously because of the belief that moral
seriousness is necessary for economic success. This chapter showcases the effects of
Carbon Plus Corporation to communities that could help in making decisions that will
promote long-term sustainability, economic prosperity and a healthy community and
social well-being.
I. Contribution to the Philippine Economy
The establishment of the company will help the Philippine economy prosper and
grow by means of Carbon Plus Corporations’ taxes. The taxes paid will be an additional
increase to the government’s budget that can be use in various government projects for
the development of the country. Furthermore, it would help the export aspect of the
country advance once it started exporting its product in the near future.
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II. Contribution to the People of Quezon Province
Building a new company within Quezon Province will increase the number of
available jobs within the region. Qualified unemployed individuals within Quezon would
be given the chance to acquire a job with a fair salary without having the need to go out
of the region. Thus, this would help them cope up with their family’s needs and also
have time to spend with their family more, compared as to when they will be working
outside the region.
The company can also help the suppliers of coconut shells and other related
supplier companies within Quezon Province gain an additional customer. With as much
as they would be of help to Carbon Plus Corporation, the company would be of help with
theirs too. Furthermore, customers within Quezon Province won’t need to go beyond the
region just to acquire activated carbon. They could acquire the product as fast as possible
with less cost.
III. Contribution to the Environment
Carbon Plus Corporation aims to help in the purification of the environment. The
product itself promotes the said aim due to its trait as an adsorbent and is really the one
used to purify substances. The product promotes cleanliness be offered to the public.
Furthermore, the corporation ensures the environmental awareness of its employees and
staffs. It would promote a clean and green environment within and outside its plant
facilities.
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IV. Contribution to the Customers
Carbon Plus Corporation will be of help to the minimization of costs of our
customers in the hope that they may acquire our products in lower prices when compared
to foreign and other local manufacturers. Thus, since we are in CALABARZON, we can
provide these customers with lesser freight costs and expenses as well as ease of access.
Activated carbon consumers no longer need to experience complicated deals and
negotiations with far manufacturers as we will bring activated carbon right before them.
V. Contribution to the Company Shareholders
Carbon Plus Corporation will help increase the wealth of shareholders by means
of giving dividends and incentives. Carbon Plus also aims to increase the value of the
shares making the shareholder’s investment increase as well.
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CHAPTER 7
LIST OF EXPECTATIONS
Carbon Plus Corporation is a corporation designed to be globally competitive in
its products and services. The corporation is expected to be one of the trademarks of
Quezon in the coming years bringing out the usefulness and importance of coconut, the
major product of Quezon. The corporation expects to help the province in the coming
years with regards to employment, cleanliness, and progress.
As soon as the operation within water purification and oil refinery industry
stabilized, the next stage is to plan for expansion. Carbon Plus Corporations plans to
expand its operations to other industries and cater to other top industries that consumes
activated carbon like mining and automobile industries.
Carbon Plus further expects to expand its operations as soon as possible to the
whole Luzon, to the whole Philippines, and hopefully be able to export its products to
other countries in the globe. To be globally competitive, Carbon Plus expects to regularly
innovate their products and processes, as well as its services for the convenience of the
common good.
Sooner, Carbon Plus will rise by means of slowly but surely taking steps to
progress. Hopefully, in the future years to come, Carbon Plus will be able to build a name
that is trusted and respected.
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CHAPTER 7
LEGAL FEASIBILITY
Legal feasibility is used to determine whether the proposed system conflicts with
the legal requirements. (Wikipedia.org) This aspect of the study will tackle the different
requirements to establish Carbon Plus Corporation under the Philippine laws. Steps to be
followed will also be discussed in this chapter.
A. Legal Requirements
Securities and Exchange Commission
Social Security System
Philippine Health Insurance Corporation
Home Development Mutual Fund
Bureau of Internal Revenue
Department of Trade and Industry
Fire Department
Lucena City Hall
B. Registration Requirements
SEC ( Stock Corporation)
Basic Requirements
1. Name Verification Slip (secure online or from SEC Name Verification Unit );
2. Articles of Incorporation and By-laws;
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3. Treasurer’s Affidavit; and
4. Joint affidavit of two incorporators undertaking to change corporate name
immediately upon receipt of notice or directive from the Securities and Exchange
Commission that another corporation, partnership, or person has acquired a prior
right to the use of that name or that name has been declared misleading,
deceptive, confusingly similar to a registered name, or contrary to public morals,
good customs or public policy. (not required if the Articles of Incorporation have
a provision on this commitment ).
Additional Requirements
5. Endorsement/clearance from other government agencies, if applicable.
6. For corporations with foreign equity: Proof of remittance by non-resident aliens
and foreign corporate subscribers to register their investment
with the
BangkoSentralngPilipinas ( BSP ) or an affidavit that they will not register their
investment with the BSP
7. For corporations with more than 40% foreign equity: application form required by
the Foreign Investments Act of 1991 (R.A. 7042, as amended)
8. For corporations with applications with the Philippine Economic Zone Authority
(PEZA), Subic Bay Metropolitan Authority (SBMA), Clark Development
Corporation (CDC), Cagayan Economic Zone Authority (CEZA) or other
economic zones: Certificate of Authority or endorsement from said government
agencies
9. Additional requirements based on kind of payment of subscription indicated
hereunder
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a. Cash
1. For corporations with foreign subscribers who want to register their investments
with the BSP: BSP standard bank certificate of inward remittance.
b. Land and/ Building/Condominium Unit
1.
Description of the property showing the name of its registered owner, location,
area, TCT No., tax declaration number and the basis of the transfer value (market
value/assessed value/ zonal value or appraised value ), signed by the treasurer of
the corporation;
2.
Copy of TCT/CCT and tax declaration sheet, as certified by the Register of
Deeds and the Assessor’s Office, respectively;
3.
If transfer value is based on zonal value: Latest zonal valuation certified by the
Bureau of Internal Revenue (BIR);
4.
If transfer value is based on appraised value: Appraisal report by a licensed
real estate appraiser (not more than six [6] months old);
5.
Deed of assignment with primary entry by the Register of Deeds;
6.
If property is mortgaged: Mortgagee/creditor’s certification on the outstanding
loan balance and his consent to the transfer of property ;
7.
For assignment of a building where the assignor is not the owner of the land:
Lease contract on the land and consent of the land owner to the transfer;
8.
Affidavit of the transferor that the building/condominium unit is existing and in
good condition; and
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9.
Affidavit of undertaking by any incorporator or director to submit the proof of
transfer of the property within the prescribed period.
c. Untitled Land
If the property/ies involved are untitled lands classified by the Bureau of Lands and
the Department of Environment and Natural Resources (DENR) as alienable and
disposable lands and are not covered by the Comprehensive Agrarian Reform Law of
1988 ( R.A. 6657 ), the following documents should, in addition, be submitted:
1.
(i)
Duplicate original or certified true copies, insofar as may be applicable, or:
Proof of possession or that the subject land had been in the possessor’s open,
peaceful, continuous and uninterrupted exclusive possession in the concept of an owner
for a least thirty (30) years and that the possessor had introduced improvements thereon,
if any, (submit a certification of the authorized officer of the barangay where the property
is located, and at least two (2) adjoining property owners or possessors, attesting to the
transferor’s possession of the property or claimants of the property; and payment of
corresponding local real estate taxes);
(ii) Duplicate original or certified true copies of the tax declaration, tax receipts
and local real estate tax clearance;
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(iii) Affidavit executed by the transferor attesting that;
(a)
His adverse, continuous and open possession of the untitled property
may ripen into ownership by virtue of acquisitive prescription;
(b)
The subject property is not tenanted (submit Affidavit of Non-
Tenancy);
(iv) Duplicate original or certified true copies of any deed, conveyance,
mortgage, lease, or other voluntary instrument affecting the untitled
property duly recorded in the office of the Register of Deeds for the
province or city where the land is situated, pursuant to Sections 3 and 113
of PD No. 1529;
(v)
Affidavit executed by the transferor attesting to the:
(a) Existence ( or non-existence ) of easements over the untitled
property;
(b) Kind or description of the easement/s and its location; and
(c)
Whether the transferor is the dominant estate or the servient estate by
virtueof such easement/s
(vi)
Undertaking (under oath) of the transferor/subscriber to answer for any
liability that the corporation might incur by virtue of the acceptance of
said property as paid-up capital;
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2. Clearance or certification from the Department of Agrarian Reform attesting to
the following:
(i) there is no other application or claimant to the untitled land;
(ii)
it has not issued any Certificate of Land Ownership Award (CLOA)
over the property to any other party; or
(iii) the land is exempted from the coverage of the
3. Blue Print Survey of the Plan, as approved by the Bureau of Lands, showing the
inclusion of such lands.
d. Inventories /Furniture/Personal Properties
1. Description of the property and the basis of transfer value (market value or book
value ) signed by the treasurer of the corporation;
2. Special audit report by an independent CPA on the verification and valuation of
the Property, or appraisal report by an accredited appraisal company, which is not
more Six (6) months old, on the valuation of the property;
3. Deed of assignment of the property to the corporation; and
4. Affidavit of the transferor that the inventories/ furniture/personal properties are
existing and in good condition.
e. Heavy Equipment and Machinery
1. Description of the heavy equipment or property and the basis of transfer value
(book value or appraised value) signed by the treasurer of the corporation
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2. Appraisal report by a licensed mechanical engineer (not more than six [6] months
old). If the property is imported, the valuation report of the BSP shall be
submitted;
3. Deed of assignment of the heavy equipment or property to the corporation; and
4. Affidavit of the transferor that the heavy equipment/machinery is existing and in
good condition
f. Shares of Stock
1. Description of the shares of stock showing the name of stockholder, stock
certificate number, number of shares and the basis of transfer value (market value
or book value) signed by treasurer of the corporation
2. Audited financial statements of the investee company as of the last fiscal year,
stamped received by the SEC and BIR;
3. Deed of assignment of the shares of stock to the corporation;
4. Certification by the corporate secretary of the investee company that the shares
are in the name of the assignor;
5. Photocopy of the stock certificates (the original copy should be presented for
verification);
6. If shares of stock are listed in the stock exchange: Latest market quotation in the
newspaper or certification from the stock exchange/broker on the latest market
price of the shares of stock ; and
7.
Affidavit of undertaking by any incorporator or director to submit the proof of
transfer within the prescribed period.
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g. Motor Vehicles
1. Description of the motor vehicles showing the name of the registered owner,
make/model, plate number, chassis number, motor number, certificate of
registration number, and market value, signed by the treasurer of the corporatio
2. Photocopy of the Certificate of Registration and official receipt of annual
registration fee (the original copy should be presented for verification);
3. Appraisal report by a licensed automotive engineer (not more than six [6] months
old);
4. Deed of assignment of the motor vehicle to the corporation;
5. Affidavit of the transferor that the motor vehicle is existing and in good condition;
and
6.
Affidavit of undertaking by any incorporator or director to submit the proof of
transfer within the prescribed period.
h. Sea Vessel/Aircraft
1. Description of the vessel/aircraft showing the name of the registered owner,
registry number, technical description, and appraised value signed by the treasurer
of the corporation;
2. Certified true copy of the certificate of ownership;
3. Certificate of seaworthiness/airworthiness issued by the appropriate government
agency;
4. Appraisal report by a licensed maritime or aeronautical engineer (not more than
six [6] months old);
5. Deed of assignment of the vessel/aircraft to the corporation;
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6.
Affidavit of the transferor that the sea vessel/aircraft is existing and in good
condition;
7. Affidavit of undertaking by any incorporator/director to submit the proof of
transfer within the prescribed period.
i. Intangibles
1. Photocopy of the certificate of registration of intellectual property rights or
mining permit (for mining claims/rights);
2. Appraisal report by an accredited appraisal company (not more than six [6]
months old);
3. Deed of assignment of intangibles to the corporation.
j.
Net Assets (by way of conversion of single proprietorship/partnership into
corporation or by way of spin-off)
1. Articles of Dissolution of Partnership;
2. Audited financial statements of the single proprietorship or partnership or division
of a corporation (for spin offs) as of the last fiscal year;
3. Long-form audit report of item 2;
4. Deed of assignment of the assets and liabilities to the corporation;
5. Separate deed of the assignment for the land with primary entry by the Register of
Deeds
6. List of creditors, with the amount due to each creditor certified by the auditor or
certified under oath by the company accountant and the written consent of each
creditor;
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7. Description of the properties with certificate of registration/titles and their
respective book values; and
8. Photocopy of the Certificate of Registration of the motor vehicle (the original
copy should be presented for verification);
9. Photocopy of the TCT/CCT and tax declaration sheet, as certified by the Register
of Deeds and the Assessor’s Office, respectively; and
10. For single proprietorships: Department of Trade and Industry (DTI) Certificate of
Registration.
Notes:
1. Items 5 to 10 shall be complied with only if applicable
2. The corporation should use the name of the partnership, drop the word
“company” and add either the word “corporation” or “incorporated”, or its
abbreviation
3. The filing of the Articles of Dissolution and Articles of Incorporation or Increase
of
Authorized Capital Stock should be simultaneous.
BIR (Bureau of Internal Revenue)
Tax FormBIR Form 1903 - Application for Registration for Corporations/
Partnerships (Taxable/Non-Taxable)
Documentary Requirements
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Copy of SEC Registration and Articles of Incorporation/Articles of
Partnerships, as the case may be;
Copy of Mayor’s Business Permit or duly received Application for
Mayor’s Business Permit, if the former is still in process with the LGU
SSS (Social Security System)
A corporation must accomplish SSS Forms R-1 and R-1A signed
by its president or any of the corporate officers or incorporators. Submit
these forms together with the photocopy of the Articles of Incorporation.
The original copy of the Articles of Incorporation must be presented to the
SSS for authentication.
HDMF (Home Development Mutual Fund)
1. Employer’s Data Form (EDF [FPF040])
2. Specimen Signature Form (SSF [FPF170])
3. Certified true copy of proof of business existence (SEC
certificate of Incorporation, approved articles of incorporation
and by-laws, and board resolution or secretary’s certificate
indicating the duly designated authorized representative.
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PHIC (Philippine Health Insurance Corporation)
1. Employer Data Record or ER1 Form (in duplicate)
2. Business Permit/ license to operate
3. SEC registration form
DTI (Department of Trade and Industry)
1. SEC certificate
2. Articles of corporation and By-Laws
3. Verification slip form
4. Accomplished registration data sheet
5. Treasurer’s affidavit
6. Bank certificate of deposit
7. Authority to verify bank accounts
8. Written undertaking to change corporate name when necessary
9. Subscriber’s information sheet
10. Clearance from other government agencies (if needed)
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BIBLIOGRAPHY
A. Books
Agamata, Franklin T. 2012 Edition. Management Advisory Services
Ballada, Win. 2012 Edition. Income Taxation
Mejorada, Nenita. Cost Accounting
Valix, Conrado, et.al. 2012. Financial Accounting Vol 1,2 and 3
B. Unpublished Materials
De Oro, Sherwin Mark, et.al. 2009. A Project Feasibility Study on Diaper
Manufacturing for Adult
Co, James Arvee, et.al. 2013. A Project Feasibility Study on Rice Bran Oil
Manufacturing
C. Web
http://.census.gov.ph
http://en.wikipedia.org
http://sulit.com.ph
http://www.dti.gov.ph
http://alibaba.com
http://google.com
http://lucenacity.gov.ph
