A domestic corporation, on the other hand, is a business that was established in a nation and conducts business there. Contrarily, foreign corporations are businesses that were established outside of their nation of incorporation yet conduct business there. Domestic corporations are subject to the rules and regulations of the nation in which they are incorporated, which is the main distinction between the two. On the other hand, foreign corporations are governed by the laws and rules of both the nation in which they were incorporated and the nation in which they are doing business.
The Anti-Dummy Law forbids foreigners from owning a majority stake in a domestic firm. To stop foreigners from holding property and running enterprises in the Philippines, this law was passed. According to the law, a foreigner is not allowed to pose as a Filipino citizen or utilize a Filipino as a dummy to manage a business.
De facto corporations are businesses that behave like a corporation but haven’t really been incorporated yet. These businesses are typically regarded as legal entities and are governed by the same rules and laws as traditional corporations. They are not, however, eligible for some advantages enjoyed by formal corporations, such as limited liability protection.
Legal phrases like dejure and defacto describe the standing of a company or government. A government or organization that has been legally created and acknowledged as such is referred to as dejure. Defacto refers to an organization or government that is acting legally but is not recognized as such by the law.
In conclusion, a domestic corporation is a business that has been established in a certain country, whereas a resident citizen is a person who is lawfully residing in a specific country. De facto corporations are businesses that are conducting business as corporations but have not yet been properly incorporated, which is prohibited by the Anti-Dummy Law. Defacto refers to a government or corporation that is operating as though it were legal but has not been recognized by the law, whereas dejure refers to a government or corporation that has been created in accordance with the law and has been recognized as such.