The Philippines is a country represented by one of the most beautiful islands in the world which is attractive not only to tourists but also to the investors interested in doing a business there. Providing incentives, and having business-friendly legislations towards foreign investment, the Philippines government allows for the establishment of companies here under very advantageous conditions. A partnership company is a legal form of business operation in the Philippines between two or more individuals who share and manage both the profits and losses of the company. After corporation, a partnership company in one of the most preferred business entities in the Philippines.
Advantages of Setting Up a Partnership Business in the Philippines
- Partnership company is easy to establish and the start-up cost is comparatively low
- Due to two or more partners, there is a possibility of high capital contribution
- A partnership company can change its legal structure if circumstances change
- Sharing of losses
- An equal right in the management of the business
How to Register a Partnership Company in the Philippines?
Business registration is a crucial step while setting up a business. Depending on the size of your company, the whole registration process can either be short and simple or long and tedious. Company registration in the Philippines is not a tedious process if the investor is aware of the various regulations related to the same. To register your partnership firm in the Philippines, here’s a guide that will help you understand the process clearly.
1. Register Your Business Name at the Securities and Exchange Commission (SEC)
If you are registering a corporation or a partnership firm, then you have to register your company name at the SEC. It is the government agency responsible for the securities law and regulating the securities industry in the Philippines. After registering, you must secure a Certificate of Registration from the SEC in order to have the license to operate a business.
2. Obtain a Barangay Clearance
In the Philippines, all the businesses must obtain a Barangay Clearance from any local Barangay office where the business is located. A clearance will assure that your business is a community friendly establishment and conforms to the standards of the Barangay.
3. Register with the Social Security System (SSS)
Companies who hire employees must register their business and employees with the SSS. Registering your employee with the SSS ensures that, as an employer, you are lawfully remitting your employer’s contribution to the agency for the benefits of your employees. Not registering your employees with the SSS is regarded as violating the Social Security Law.
4. Obtain Permit from the Mayor’s Office
After securing Certificate of Registration, Certificate of Barangay Clearance and registration with the SSS, the next step is to register and obtain a permit from the local Municipality closer to your office. The permit affirms that your business is compliant with the municipality or city’s ordinances and standards such as sanitary, fire and safety and other clearances.
5. Register Your Business with the Bureau of Internal Revenue (BIR)
A Certificate of Mayor’s Permit must be submitted prior to the issuance of the BIR Certificate of Registration. Registering with the BIR will give you an authorization to print official receipts, register books of accounts and obtain a separate Tax Identification Number (for partnerships and corporations). BIR registration fee is 500 pesos annually.
Documents Required to Set Up a Partnership in the Philippines
1. Basic Requirements
- Name Verification Slip
- Articles of Partnership (AP)
- Joint Affidavit of two partners to change partnership name (not required if already stated in AP)
- Registration of data-sheet
- Certificate of Bank Deposit
- Name of the partnership
- Principal office address
- The contact number of the partner
- Name, citizenship, address, birthday and Taxpayer Identification Number (TIN) of the partners
- Capital contribution of the partners
- Purpose of the partnership
2. Additional requirements
- Endorsement/clearance from other government agencies, if applicable
- For partnership with a foreign national as a partner (FIA Form - 105)
Note: For a limited partnership, the word “Limited” or “Ltd” should form part of the partnership name.
It can be a cumbrous task to gather all the documents and complete the process on your own, especially when you are not completely aware of the whole process. In such case, you can always take a help from a consultant who is updated about all the regulations of that particular country. Business Setup Worldwide is one such platform who can help you with business registration in the Philippines. We have a specialized team of professionals having extensive knowledge of all company formation rules and regulations in the Philippines and can help you with partnership registration in the Philippines with ease in less time. Contact us for more information – we’d be happy to assist.