Change of Line of Business in the Philippines

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Change of Line of Business (LOB) Service​

With our business compliance and post-registration services, we process various amendments to our clients’ incorporation details with the Securities and Exchange Commission (SEC) and other government regulatory bodies, e.g., BIR, BPLO, and statutory agencies. Our change of line of business service goes through the following stages:

​Ready for a new business direction? Let our expert and experienced team assist you with the Change of Line of Business and make the necessary compliances. ​

We’ll help you turn your business vision into reality as we handle the legal and technical complexities while you boldly step into the next exciting chapter.

Expertise
and Experience

At FilePino, we guarantee that our Business Post-Formation Team and liaison officers are updated with the latest regulations, expert in document filings, and experienced in navigating the intricacies of government transactions.  

Compliance Monitoring
and Updates

We ensure that all our clients’ filing schedules and deadlines are plotted and monitored to ensure continuous compliance with the corporate laws and regulatory frameworks and keep them on track with the progress of all ongoing transactions.

Risk Management
Solutions

Having dealt with and resolved various compliance issues, we have identified all potential risks and devised strategic risk management solutions to help mitigate issues and avoid hefty penalties before they impact the business.

Holistic Business
Support

With FilePino and its sister companies, you can have access to a full suite of business compliance and post-registration services, including business permit renewal, filings of amendments with the government agencies, and legal assistance.

 

 

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Explore new horizons with a New Line of Business! We help you turn your business vision into reality as we handle the legal and technical complexities while you boldly step into the next exciting chapter.

FAQs

Change of Line of Business (LOB) FAQs

A line of business (LOB) is a sector of the economy or industry that a company or business services. It defines the company’s product or service as placed in a more specific market segment. For instance, a company that sells car insurance would fall under the “insurance” line of business, while one that manufactures medical devices would be classified as “health care.”

Most large enterprises use LOB as a synonym for corporate division to decide how different departments meet customers’ needs. If a company, for example, is engaged in both manufacturing and sales of certain products, then manufacturing and sales are two important divisions of the business operations.

The primary and secondary purposes, as indicated in the approved Articles of Incorporation (AOI), set the line of business and other activities that the corporation can legally engage in. As a general rule, the primary purpose of the corporation determines its classification.

The business activities of overseas recruitment and travel agencies cannot be in a single entity pursuant to the implementing rules and regulations of the Labor Code of the Philippines. Additionally, a corporation, both as a sole or religious society and a school, is also not allowed, as the school should be incorporated distinctly from a religious corporation.

Different laws, regulations, and tax rates apply to different lines of business. When changing the line of business, the old line must be properly retired by filing applications with the concerned government regulatory bodies and LGUs for discontinuance of compliance requirements and tax collections.

Like other amendments to the incorporation details, the process starts with the SEC filing and continues to the LGUs and other government regulatory bodies, which include the barangay, the city or municipal government (BPLO), BIR, and statutory agencies. Updated permits, licenses, and registration certificates that reflect the new line or business are issued after the successful amendments.

The change, retirement, and addition of lines of business filed with all the concerned government regulatory bodies and LGUs may take months, which also depends on factors, such as the complexity of transactions, compliance requirements, and efficiency in the agencies.

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