MANILA—The Philippine Overseas Employment Administration (POEA) has reminded all licensed recruitment and manning agencies to increase their paid-up capital in compliance with the agency’s revised rules on the matter.
With this, the agency said that land-based agencies have until May 31 to comply with the order while the deadline for sea-based agencies is on September 28.
Under the POEA’s revised rules of 2016, licensed agencies are required to raise their capitalization or paid up capital to PHP5 million in a span of four years. The new rules provide an option for a minimum annual increase of PHP750,000.
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.”
The agency also warned that non-compliant agencies will be slapped with suspension of licenses, as provided under the rules.
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;
Also, they are required to present, Amended Articles of Partnership/Incorporation providing for the increase of the authorized/paid-up capital to a minimum of PHP5 million; 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.
Likewise, compliant agencies are required to submit a certification issued by the SEC on the present paid-up capital of the corporation or partnership, or bank certificate, in case of single proprietorship.
On the other hand, single proprietorship agencies are required to submit Bank certificate showing a deposit of at least PHP750,000, with authority to examine the bank report.