The Philippine Overseas Employment Administration has raised the capitalization or paid-up capital of all licensed recruitment and manning agencies to P5 million.
In a statement, the POEA said the new rules provide an option for a minimum annual increase of P750,000.
It 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 or face suspension and penalties.
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.
“Under 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, P5,000,000 at the rate of P750,000 every year,” the POEA said.
Non-compliant agencies, the same rules provide, will be slapped with suspension of licenses.
The POEA will now require corporate and partnered owned agencies to submit a 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 P750,000.00, 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 5,000,000; 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 P750,000.00.
Single proprietorship agencies, on the other hand, are required to submit Bank certificate showing a deposit of at least P750,000 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 SEC on the present paid-up capital of the corporation or partnership, or bank certificate, in case of single proprietorship.