TIM eMagazine Vol.2 Issue 3
POEA to
recruitment
agencies:
raise capital
T
he Philippine Overseas Employment Administration
(POEA) has directed all licensed recruitment and
manning agencies to comply with the increase in
their company’s paid-up capital pursuant to the
agency’s revised rules.
Under POEA’s revised rules of 2016, licensed
agencies are required to raise their capitalization or
paid up capital to P5 million in a span of four years. The new rules
provide an option for a minimum annual increase of P750,000.
Section 2 Rule I Part II of the POEA Revised Rules and
Regulations Governing the Recruitment and Employment of OFWs
states: “Those with existing licenses, shall, within four (4) years from
effectivity thereof, increase their capitalization or paid up capital, as
the case may be, to Five Million Pesos (PhP5,000,000.00) at the rate
of Seven Hundred Fifty Thousand Pesos (PhP750,000.00) every year.”
Non-compliant agencies, the same rules provide, will be slapped
with suspension of licenses.
As proof of compliance, the POEA requires corporate and
partnered owned agencies to submit Treasurer’s Affidavit on
the additional authorized subscribed and paid-up capital stock
requirements/Joint Affidavit of partners on the additional partners’
contribution; Bank certification showing an additional deposit of at
least PhP750,000.00, with authority to examine the bank account;
Amended Articles of Partnership/Incorporation providing for the
increase of the authorized/paid-up capital to a minimum of Five
Million Pesos (PhP5,000,000.00); and a Certification issued by the
Securities and Exchange Commission (SEC) on the current paid-up
capital of the corporation/partnership showing the increase of at
least PhP750,000.00.
Single proprietorship agencies on the other hand are
required to submit Bank certificate showing a deposit of at least
PhP750,000.00, with authority to examine the bank report.
The POEA has set the deadline for the submission of the yearly
increase for land-based agencies on or before May 31, 2017.
However, the deadline for sea based agencies is on or before
September 28, 2017.
Compliant agencies are also required by the POEA to submit
a certification issued by the Securities and Exchange Commission
(SEC) on the present paid-up capital of the corporation or
partnership, or bank certificate, in case of single proprietorship.
The Philippine Overseas Employment Administration (POEA) has directed
all licensed recruitment and manning agencies to comply with the
increase in their company’s paid-up capital pursuant to the agency’s
revised rules
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