What procedure is followed if a corporation commences business but becomes continuously inoperative?
If a corporation has commenced its business but subsequently becomes inoperative for a period of at least five (5) consecutive years, the SEC may place it under delinquent status after due notice and hearing (SEC. 21, Revised Corporation Code of the Philippines). A delinquent corporation is then granted a period of two (2) years to resume operations and comply with all prescribed requirements. Failure to resume operations and comply within this two-year period shall lead to the revocation of the corporation’s certificate of incorporation. The SEC is also required to coordinate with the appropriate regulatory agency prior to suspending or revoking the charter of specialized companies.
02 November 2025
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