Rapidly growing economy and regulatory changes attract foreign investors to invest in a country. This turns out to be one of the reasons why the Philippines are among the fastest growing countries in Southeast Asia. A corporation is a legal entity that is separate and distinct from its owners or incorporators. The legal rights and obligations of a corporation are similar to that of an individual. The ownership of a corporation is divided into Shares and Stock. A corporation issues the stock to individuals or other businesses who then become the owners or stockholders of the business. The Philippines do not have the concept of a Limited Liability Company. Therefore, a corporation business in the Philippines serves as its closest local equivalent by virtue of power and attributes granted to the latter by the Corporation Code of Philippines.
Starting your business right is crucial to its future success. Starting rights means: Everything should be legal and registered. If you are planning to register a business in the Philippines than it is necessary for you to follow all the regulations related to the same. For setting up a small business corporation in the Philippines, here are the necessary steps that must be followed.
Unlike the sole proprietorship where the business name is registered at the Department of Trade and Industry (DTI), here the name of the corporation must be reserved and registered in the SEC. First, you need to check if the desired name is available to use via SEC online website or at the SEC office in Mandaluyong. If available, then register your name at the website. While registering prepare, sign, and notarize the following:
After submitting the documents to the SEC office, you can claim your SEC Certificate of Registration. It takes around 1 week to complete this process.
Once your business is registered with the Commission, the next step is to get a Barangay Clearance in the Barangay where your business is located. Submit an application form to the officials with the following documents:
This process requires one day for completion upon submission of the documents.
Visit the nearest Municipal office where the business is located and fill up the application form. Upon filling, submit the application form with the following documents:
It will take around 1 week to complete this process after submitting all the documents.
Once you have the Mayor’s Business Permit, you can now register your business with the BIR. Firstly, you need to go to the Regional District Office (RDO) where your business is located. Fill up the application form and submit the same with the following documents:
After submitting the documents pay the registration fees and register your book of accounts and receipts. Next, you can claim your Certificate of Registration and form a Corporation Company in the Philippines.
A Philippine corporation can be 100% foreign owned as long as it is not listed in the Philippine Foreign Investment Negative List. Forming a company can be a long process especially when you are not aware of the rules, regulations, and procedures for registering one. During such times you can rely on a consultant who will help you in making this process hassle-free. We at Business Setup Worldwide offer you with the Company Formation service along with Company Registration, Accounting and Bookkeeping, IP, and Corporate Secretarial services. Our advisors in the Philippines will ensure that your organization gets registered and incorporated quickly, without any unnecessary complications. Contact us today – we’d be happy to help.