October 4, 2019
SEC-OGC OPINION NO. 44-19
RE: RETAIL TRADE; EVENT ORGANIZER PROVIDING CATERING SERVICES
Mr. Przemyslaw Adam Floras
PAFKRU SK, Inc.
5 Noreco Rd., Mangnao, Dumaguete City
Negros Oriental
Dear Mr. Floras :
This refers to your letter dated 25 April 2019 requesting an opinion on whether the business model of PAFKRU SK, Inc. (PAFKRU) constitutes retail trade under Republic Act (R.A.) No. 8762, otherwise known as the Retail Trade Liberalization Act of 2000 (RTLA).
It is averred that PAFKRU is a domestic corporation with 40% foreign equity primarily engaged in event management services, which includes party catering services. It has no intention to operate restaurants and aims to provide by itself, its subsidiaries or subcontractors catering services during events only.
PAFKRU's business model, as you described, is that of an event caterer that offers service packages, rather than standard produce. These service packages usually include preparation, logistics, rental, delivery and set-up of tables, chairs, cutleries, including delivery and display of food and beverages. You gave as an example a wedding celebration where a caterer is hired by the bride and groom to...
