Re: Retail Trade; Sale as Incident to a Corporation's Primary Purpose

October 7, 2019SEC-OGC OPINION NO. 46-19RE: RETAIL TRADE; SALE AS INCIDENT TO A CORPORATION'S PRIMARY PURPOSEDeetha Auraa, Inc.A.D. Curato StreetBarangay SikatunaButuan CityMr. Sachdev :This refers to your letter dated 17 January 2019 requesting for confirmation of your position that Deetha Auraa, Inc. (Deetha), a domestic corporation duly registered with the Commission on 10 February 2016 with CR No. CS201631683, is not engaged in retail trade, pursuant to the Retail Trade Liberalization Act of 2000 (RTLA). 1 According to your letter, Deetha is engaged in the establishment and operation of optical clinics managed by professionally registered optometrist(s) to provide optometry services in Butuan City and Davao City. However, while applying for the renewal of your business permit, the Davao City Hall informed you that the establishment of your optical clinics is a retail form of business, and considering that the corporation has 37% foreign equity, the institution of the same is in violation of the RTLA. Hence, your request.Section 3 of the RTLA defines retail trade as any act, occupation or calling of habitually selling direct...