Corporate Compliance · Secondary Purpose
Addition of secondary purpose
Expand into a new line of business on a sound legal footing. We add the secondary purpose to your articles and align your registrations.
Overview
Adding a line of business the right way
Secondary purposes authorize activities beyond your main business. Adding one lets your corporation expand into a related or new line of business without changing what it primarily does, and keeps the contracts, invoices and permits for that business on a sound legal footing.
Adding a secondary purpose is an amendment of the Articles of Incorporation, with the same approvals as any other amendment: a majority of the board and stockholders representing at least two-thirds of the outstanding capital stock. Each new purpose also has to pass the same checks as the primary one, including whether it is regulated and whether it is open to your level of foreign ownership.
What we handle
New purposes, properly added
Eligibility checked, articles amended, registrations aligned.
Purpose drafting
Secondary purposes drafted to cover the new activity precisely.
Eligibility checks
Each purpose checked for regulation and foreign ownership limits.
Approvals and SEC filing
Resolutions secured and the amendment filed with the SEC.
BIR and permit alignment
Registrations updated so the new activity can be invoiced and permitted.
How it works
How it works
From the new activity to an approved amendment.
Review
The planned activity assessed and the purpose clause drafted.
Approvals
Board and stockholder resolutions prepared and signed.
SEC filing
The amendment filed and followed through to approval.
Registration updates
BIR and permits updated to cover the new line of business.
Estimated timeline
Within 30 Days from completion of documentary requirements
Timelines are estimates and depend on complete documents and government agency processing.
Why add purposes with ILA
No hidden restrictions
Each purpose checked against ownership limits first.
Ready to trade
Registrations aligned so you can invoice the new business.
Precise drafting
Purpose clauses that fit the activity, nothing more.
Frequently asked questions
Secondary purpose questions, answered
What is the difference between a primary and a secondary purpose?
The primary purpose is your corporation’s main business. Secondary purposes authorize additional activities alongside it.
Can we add several secondary purposes at once?
Yes. One amendment can add several, provided each is drafted carefully and passes the same regulatory and ownership checks.
Could a new purpose affect our foreign ownership?
It can. A secondary purpose in an area with foreign equity limits can affect the foreign ownership your whole corporation is allowed to hold, so we check every purpose before filing.
Expanding into a new line of business?
Book a free consultation and we will check the new activity and handle the amendment.
