13 Steps to Register Your Business in the Philippines

The Philippines is a flourishing ground and one of the growing nations in Asia. The economy expanded by 5.6% in 2021 after logging 7.7% growth by the fourth quarter.

It is an archipelago consisting of more than 7,000 islands located in the Western Pacific Ocean. The zone belongs to the top ten copper, chromites, and gold producers globally.

Due to the top-friendly destinations, the location has attracted many investors globally. In addition, the business-friendly rules established by the Filipino government has made the zone fruitful and advantageous for any entrepreneur in the world.

If you plan to register a business in the Philippines, then here are a few steps to be taken care of!

Be Clear About Your Business Idea

The first and foremost task is to have a clear idea regarding the type of business you want to start with. Being clear about your domain will help you quickly understand the next steps.

Study the Market

Once you are settled with the relevant business idea, you need to step towards the market study. This will help you get better insights regarding the core players in the market and understand their strategies accordingly.

Join Hands with A Business Consultant

In the next step, you need to join hands with your business expert. Taking the help of an expert turns out to be beneficial as they are well-versed regarding the market scenario and can help you take the appropriate steps on time.

Make sure to discuss with your business advisor and map the essential steps to get a clear roadmap and proceed with the company registration in the Philippines.

Select the Business Structure

Next, you need to select the defined business structure for your business. The same selection depends on the total number of shareholders and the initial capital available.

Finalize the Trade Name

Once the business structure has been finalized, the next step is to decide the trade name. The business name is the face of an organization, and one should be careful when it completes the same.

The selected business name shouldn’t duplicate the existing players in the market and should stand unique.

Relevant registrations are to be made with applicable government authorities when it comes to registering the business name, depending on the type of the company.

  • Sole Proprietorship- The Department of Trade and Industry (DTI)
  • Corporation/ Partnership- Securities and Exchange Commission
  • Cooperative- Cooperative Development Authority

The total trade fee for name registration varies between PHP 40- PHP 120.

Handover the Documents

After deciding the business trade name, hand over the relevant business papers to the business advisor to ease the process.

The set of papers required for business registration in the Philippines include:

For Sole Proprietorship:

  • A copy of government-issued ID
  • A duplicate proposed business name registration form
  • Payment of registration fees fixed on territorial based with the documentary stamp tax
  • The complete employee data form
  • Copy of municipality permission letter
  • Community tax certificate
  • Location and Barangay clearance
  • Fire safety and electrical inspection certificate
  • Occupancy certificate and building permit
  • Contract of the lease, if any

For Corporate Registration:

  • Duly filled application form
  • Verification slip form
  • Article and memorandum of association
  • Notarized bank certificate
  • Treasurer’s affidavit
  • Written undertaking to change the name of the corporate by trustee or director
  • Clearance certificate from other government agencies
  • Foreign investment application form (for foreign corporation subsidiaries)
  • List of members and contributed amount certified by the secretary
  • Registration fee
  • The complete employee data form
  • Copy of municipality permission letter
  • Community tax certificate
  • Location and Barangay clearance
  • Fire safety and electrical inspection
  • Occupancy certificate and building permit
  • Contract of the lease, if any

As per the rules, certain documents might have to be notarized. It would help if you made sure that the proper notarization of all the documents is done and the Treasure’s Affidavit is filed with the SEC.

This may cost PHP 500 and only take one day to complete the overall task.

Obtain the Respective License

The complete set of documents must be submitted to the government authorities to obtain the required approvals.

Pay the Minimum Deposit

The business owners looking forward to registering their business in the Philippines need to deposit a minimum capital in the corporate bank account.

The Philippines corporation code sets a minimum of PHP 5,000, but the fee requirement might differ from bank to bank.

Obtain the Tax Identification Number (TIN)

After registering your business with the SEC, you need to obtain the Tax Identification Number with the tax authority by submitting the relevant documents:

  • Company name verification slip
  • Notarized articles of association and by-laws
  • Notarized treasure’s affidavit
  • Statement of assets and liabilities
  • Registration data sheet with particulars on directors, officers, stockholders and so forth
  • Notarized written undertaking to comply with SEC reporting requirements
  • Notarized assignment to change the corporate name

Once the documents get submitted, the SEC will automate the TIN, which might take an average of 2 days to complete the task.

Here’s more on the Tax Services in the Philippines that you should know.

Register With BIR

Next, you need to register your company with the Bureau of Internal Revenue (BIR) District office for the authority to print the invoice and book of the journal.

The task is to determine the applicable tax, payment of the annual registration fee, acquiring and stamping the sales invoice, receipts, and the book of accounts.

Get a Barangay Clearance

Furthermore, it would help if you got your business registered with the Barangay Clearance where the company is located.

The complete set of documents is to be submitted for the clearance process, which includes:

  • Application form
  • SEC Certificate of Incorporation
  • Approved Articles of Association
  • Lease Contract
  • Business Plan

The completion of the overall process might range between PHP 300-1,000.

Register With Social Security System (SSS)

The business must get its employees registered with the Philippines Social Security System (SSS) in the next phase.

To proceed ahead with the same, the following documents are to be submitted:

  • Employer registration form (Form R-1)
  • Employment report (Form R-1A)
  • List of Employees, Specifying their birth dates, position, monthly salary and date of employment
  • Articles of incorporation, by-laws and SEC registration

Obtain Other Clearances

Apart from the above clearances, your business needs to obtain other relevant approvals from the other government authorities, which includes:

  • Department of Labour and Employment (DOLE)- For occupational safety and Health
  • PhilHealth – For availing Medicare benefits
  • PAG-IBIG fund- Mandatory for employees covered by the Social Security System (SSS)
  • Department of Environment and Natural Resources (DENR)- For availing an Environmental Compliance Certificate

Thus, you are aware of the core steps to be followed to set up a business in the Philippines. In addition, the business-friendly Philippine government has outlined numerous business opportunities to step forward and step forward for investment.

So, what’s stopping you? Wondering how to start your business in the Philippines?

Business Setup Worldwide is here to assist you in every step in registering your small business in the ground of Philippines. Since its inception, we have been helping entrepreneurial minds to take the relevant steps and set up their business globally.

Right from the incorporation to opening your branch office in the Philippines, or even a corporate bank account, our experts can guide you in every step.

For more information, feel free to contact our experts today-we’d be glad to assist!

FAQs

What is the minimum number of shareholders to set up an LLC in the Philippines?

To set up an LLC in the Philippines, the business must hold a minimum of 5 shareholders

What is the minimum capital required to incorporate an LLC in the Philippines?

An investor needs to hold a minimum share capital of 5,000 PHP to set up an LLC in the Philippines

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