Setting up an offshore company is nothing new to companies nowadays. Most of them aim towards lowering their costs to gain profits in their businesses. For that, they have started focusing on the investment options available in the offshore industry.
The Philippines is also a location wherein the companies and business investors are looking forward to investing. Seeing the demand of the same, the government has been continuously providing benefits for setting up a company in the country.
If you want to set up an offshore company in the Philippines, this article is for you.
Offshore Company in the Philippines
When it comes to offshore company incorporation, the idea holds of setting up a business entity in an offshore tax-haven jurisdiction to earn the respective tax benefits.
Over the years, the Philippines have been performing as a dominant market for business opportunities. Here’s a guide on the business opportunities in the Philippines, which will help you to understand the ground level at ease.
The ground has been growing as one of the best offshore jurisdiction, and investing in the same will turn out to be a profitable move as it would fetch out higher returns.
Keys to Consider While Setting Up an Offshore Company in the Philippines
Before you start pondering how to set up an offshore company in the Philippines, these are some of the points you need to understand.
- Understand the core reason for carrying out the business in an offshore location
- Have a clear idea of how does a company work
- Have clarity regarding the shareholders and directors of the company
- Hold the right set of documents
- Hold the respective amount to be paid accordingly
Once you've followed these points, it becomes easy to focus on setting up your company in the Philippines. Here are the main reasons why you should consider the Philippines as your next place to start a company.
How to Register an Offshore Company in the Philippines?
When it comes to registering an offshore company in the Philippines, specific steps need to be taken accordingly:
1.Registering with the SEC
The foremost thing before setting up your company in the Philippines is to express your company's name in the Department of Trade and Industry (DTI) so that no other company uses your name to trade within the country.
For Corporations and Partnership companies, registering with the Securities and Exchange Commission (SEC) is enough. Without the SEC License, the corporation cannot operate within the country. The fee for registering with the SEC is PHP 10,000
2.Registering with the Local Barangay Office
The next thing is to register your business with the Local Barangay Office. The Local Barangay clearance ensures that the firm established is community-friendly and complies with the standards of the Barangay.
3.Secure a Mayor’s Permit
After obtaining the SEC Registration certificate, the next thing is to get approval from the mayor's office that affirms the company has adhered to the city's ordinances and standards, such as fire and safety, sanitary clearances, and many more. Fees for the Permit are PHP 5000
4.Registration with the Bureau of Internal Revenue
Once you are done with getting the mayor's permit, the next thing you should do is to register with the Bureau of Internal Revenue (BIR). You need to produce the Mayor's Permit before you apply for a BIR certificate. Post successful registration with the BIR, you will get a Tax Identification Number (TIN), along with trade name, line of business, and the tax amount remitted to the BIR annually. The BIR registration will cost PHP 500 annually
5.Registration of employees with Other Government Agencies
Apart from the points mentioned above, other registrations might turn up accordingly.
- Social Security System (SSS): the employers should be registered to the Social Security System to report the status of employees, let it be permanent, temporary, or on a contract basis.
- Philippine Health Insurance Corporation (PhilHealth): As per the National Health Insurance Act, every employer must be registered to PhilHealth and pay a substantial profit to PhilHealth. This is to ensure that the employees have health insurance to aid them with hospital costs.
- Home Development Mutual Fund (Pag-IBIG Fund): This is something similar to PhilHealth, but for the housing of an employee in the organization. According to RA 7742, SSS members who earn a minimum of PHP 4000 per month must pay a substantial amount to provide employees with adequate housing facilities.
6.Get the Required Approvals
Once the business investors have acquired the required approvals from the respective authorities, they can proceed with the relevant business activities.
7.Open an Offshore Bank Account
Last but not least, the offshore business investors need to open an offshore bank account that will help them to carry out business transactions at a global level.
Opening an offshore bank account helps the business investors to carry out the business transactions at a global level, and also enter into Forex Trading.
[Read more: Advantages of an Offshore Banking]
So, this is the procedure to follow to register your offshore company in the Philippines. Setting up an offshore company in the Philippines is a favorable decision that can help you to earn huge returns on the investments made at the earlier stage.
Benefits of Setting Up An Offshore Company in the Philippines
Now, before investing in offshore company formation, it would be beneficial if you can have a complete idea of the relevant benefits that you can grab by incorporating one.
- Strategic location
- Subsidized taxes for foreign entities
- Flexibility to open an offshore bank account
- Can incorporate the company in a hassle-free manner
- Ease of doing trade within the country
- Holds a robust framework of the country
- Stable and robust government within the country
- Flexibility to invest in the Forex Trading market
So, by now, you have understood the essential steps that need to be followed to start an offshore company in the Philippines.
It is recommended to proceed ahead with expert's advice as they can help you to streamline the incorporation process at ease. Here's a guide on the Core Reasons for Hiring an Offshore Business Consultant who can help you to set up the company at ease.
We at Business Setup Worldwide have been helping the business investors in establishing their business. Since inception, we have been guiding our esteemed clients to incorporate their onshore and offshore business across various locations at a global level.
Our business advisors hold industry experience and can help you to incorporate your business process at ease by providing tailored solutions. Contact us for more. We are here to help you out!