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.
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.
#Paul Ang with reports from POEA