MANILA - President Rodrigo Duterte has signed a law that seeks to update the 38-year-old Corporation Code in a bid to make the Philippines an attractive investment destination.

Signed by the President on Feb. 20, Republic Act 11232, introduces the “one-person corporation” concept, which allows a single person to form a corporation.

Senate Minority Leader Franklin Drilon, principal author of the measure, said this amendment would make it easier for local business owners and investors to register their businesses with the Securities and Exchange Commission.

The amended law also removes the requirement for minimum capitalization, permit the electronic filing of reportorial requirements, allow attendance in meetings via remote communication or in absentia, and provide protection to minority stockholders.

The new law also simplifies the name verification process and grant perpetual life as the default option for corporations.

Drilon said the measure codifies international best practices "in order to make the Philippines an attractive investment destination that is conducive to business and entrepreneurship."

He added that the law would strengthen corporate governance standards in the hopes of improving ease of doing business in the country.

“The passage into law of this measure is critical in our bid to improve the country’s business climate and make our economy more competitive with the rest of the world,” Drilon said in a statement.

The senator said the code’s revision is timely given the country's fall in the World Bank's Ease of Doing Business Report 2019, where it slipped to 124th from 113th out of 190 countries.