What is the penalty for those responsible for the formation of a corporation through fraud?
Those responsible for the formation of a corporation through fraud, or who assisted directly or indirectly therein, shall be punished with a fine ranging from Two hundred thousand pesos (P200,000.00) to Two million pesos (P2,000,000.00) (SEC. 164, Revised Corporation Code of the Philippines). If the violation of this provision is injurious or detrimental to the public interest, the fine is substantially increased. The enhanced penalty ranges from Four hundred thousand pesos (P400,000.00) to Five million pesos (P5,000,000.00) in cases where public harm results from the fraudulent incorporation. This is one of the most severe initial penalties, targeting foundational corporate illegality.
02 November 2025
About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
