Classifications

• Stock Corporations have capital stock divided into shares and are authorized to distribute to their shareholders the dividends of the surplus of profits based on the shares they held. The owners are called stockholders or shareholders.
• Non-stock Corporations are private corporations that do not issue stock and its capital comes from fees paid by the individuals composing it. They are non-profit but for public good & welfare. The owners are called members.

  
  

  Section 86 of the New Code states that a non-stock corporation is one where no part of its income is distributable as dividends to its members, trustees, or officers. Any earned profit shall be used for furtherance of the purpose of the corporation.
• Ecclesiastical Corporation is organized for religious purposes.
• Lay Corporation is a corporation organized for any purpose other than religion.
• Domestic Corporation - A corporation that is organized under the Philippine Law.
• Foreign Corporation is a corporation formed, organized, or existing under laws other than those of the Philippines and whose laws allow Filipino citizens and corporations to do business in its own country or State (Section 140)
• Close Corporation is a corporation whose issued stock of all classes are held by a specified number of people, not exceeding 20. It is not listed in any stock exchange and does not make public offerings of its stocks.
• According to Section 95 of the New Code, what types cannot become close corporations?


  Mining, Oil, Stock Exchange, Banks, Insurance, Public Utilities, Schools
• Open Corporation is a corporation that is open to any person who would like to be a shareholder or member.
• De Jure is a corporation that exists both in fact (operates as a corporation) and law (complied with legal requirements).
• De Facto is a corporation that exists only in fact but not yet recognized as such by law. It has not completed its incorporation process.
• Parent Company is a corporation related to another and has the power to elect the majority of the directors of that corporation.
• Subsidiary Corporation a corporation related to a Parent Corporation.
• Public Corporation a corporation organized for the government by a portion of the state.
• Private Corporations are formed for private purposes. These are Stock, Non-Stock, and Quasi-Public Corporations. A Quasi-Public is a private corporation performing public functions.
• Multi-national Corporations are organized in one country but extend their business in other countries.
• One-Person Corporation is a corporation that has limited liability and the complete dominion of a sole proprietorship. It has a single stockholder, who is also the sole director and president of the org.