The purpose of the law is to subject the foreign corporation doing business in

The purpose of the law is to subject the foreign

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The purpose of the law is to subject the foreign corporation doing business in the Philippines to the jurisdiction of our courts. It is not to prevent the foreign corporation from performing single or isolated acts, but to bar it from acquiring a domicile for the purpose of business without first taking steps necessary to render it amenable to suits in the local courts. Once a foreign corporation has obtained a license to do business, then it is deemed domesticated , and should be subject to no harsher rules that is required of domestic corporations. LICENSE TO DO BUSINESS IN THE PHILIPPINES
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if a foreign corporation does business in the Philippines without a license, it cannot sue before Philippine courts ; if a foreign corporation is not doing business in the Philippines, it needs no license to sue before Philippine courts on an isolated transaction or on a cause of action entirely independent of any business transaction; if a foreign corporation does business in the Philippines without a license, a Philippine citizen or entity which has contracted with said corporation may be estopped from challenging the foreign corporation’s corporate personality in a suit brought before the Philippine courts; if a foreign corporation does business in the Philippines with the required license, it can sue before Philippine courts on any transaction. EFFECTS OF FAILURE TO OBTAIN LICENSE
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“Doctrine of "doing business" within the territorial jurisdiction of the host state.” It is an established doctrine that when a foreign corporation undertakes business activities within the territorial jurisdiction of a host state, then it ascribes to the host state’s laws, rules and regulations. In the same manner, in order to regulate the basis by which a foreign corporation seeks to do business and the manner by which it would seek redress within the judicial and administrative authorities within the host state, that a license be obtained under the penalty that failure to do so would not give it legal standing to sue in local courts and administrative bodies exercising quasi-judicial powers . “DOCTRINE OF "DOING BUSINESS"
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Soliciting orders, service contracts, opening offices , whether called "liaison" offices or branches; Appointing representatives or distributors domiciled in the Philippines or who in any calendar year stay in the country for a period or periods totalling one hundred eighty (180) days or more; Participating in the management, supervision or control of any domestic business , firm, entity or corporation in the Philippines; Any other act or acts that imply a continuity of commercial dealings or arrangements , and contemplate to that extent the performance of acts or works, or the exercise of some of the functions normally incident to, and in progressive prosecution of, commercial gain or of the purpose and object of the business organization “DOING BUSINESS” IN THE PHIL AS DEFINED IN THE FOREIGN INVESTMENT ACT OF 1991
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The publication of a general advertisement through any print or broadcast media; Maintaining a stock of goods in the Philippines
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  • Fall '19
  • Gilbert R. Huafana

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