What is the Concession Theory? Does it have any legal basis in Philippine Law?

It is a principle in the creation of corporations, under which a corporation is an artificial creature without any existence until it has received the imprimatur of the State acting according to law, through SEC. The life of the Corporation is a concession made by the State.

Section 19 of Batas Pambansa Bilang 68, otherwise known as the Corporation Code of the Philippines provides for the Commencement of corporate existence, that—“A private corporation formed or organized under this Code commences to have corporate existence and juridical personality and is deemed incorporated from the date the Securities and Exchange Corporation issues a certificate of incorporation under its official seal x x x”.