Business Registration in the Philippines

Type of company:o Foreign Brancho Foreignwith the following requirement:o Minimum of 5
Representative Officeo 100% fully foreign ownedincorporator, each of whom must be actual persons
Domestic Corporationo 60/40 owned Domesticand hold at least a single share in the company.o
CorporationMajority of the incorporator must be Filipino.o A
There are available consultancy firm that can assistCorporation must have between 5 and 15 directors,
and help assess those who need investment vehicleeach of whom must have at least one share of
best for the owner and the company. Such servicesstock.o Majority of the directors (or trustees) must be
will be provided:o Procedureo Planningo Registration toPhilippine residents.o All Domestic Corporations (those
relevant Philippine government agencies (e.g Securitiesincorporated in the Philippines) must obtain their license
and Exchange Commission, Department of Trade andwith the Securities and Exchange Commissiono
Industry, Bureau of Internal Revenue, etc.)Philippine Securities and Exchange Commission
Added services will be as follows:o Determine Capitalrequires the following:
Requiremento Assist in the opening of local bank- Has to reserve and register a company name
accounto Register and secure company name with- Has to submit proposed Articles of Incorporation and
Securities and Exchange Commission or withBy-Laws in compliance with the Corporation Code of
Department of Trade and Industryo Identifythe Philippines
Shareholders, Directors, Nominees and Incorporatoro- Proof of minimum capitalization required to every
Draft Articles of Incorporation and By-Lawso Processindustry or business the corporation is engaged in
documents with Securities and Exchange Commission,- Has to have the minimum paid-up capital requirement
Board of Investment, Philippine Economic Zonefor a corporation or where the foreign equity exceeds
Authority, Bureau of Internal Revenue, Social Security40% is US$200,000, which must be remitted into the
System, etco Process Mayor Permit and BusinessPhilippines
Permito And whole lot more depending on capacity of- Must employ at least 50 employees.
the firm and where in the Philippines it is intended toAll other details related to start-up, branch
establish its office/s.establishment and export oriented firms will be
Please be advice to get only credible and honestexplained further by the consultancy firm. The issuance
consultancy firm to avoid loss of time and money. Theof a certificate of incorporation from the SEC signifies
consultancy firm will also mention the existing realitiesthe commencement of corporate existence and
and limitation with concerns to facility, nationaljuridical personality for a company.
economic status, negative reports and things toBusinesses must also register with the following
expect.agencies:o Bureau of Internal Revenueo Social
Eligible businesses may then register their businessesSecurity Systemo Home Development Mutual Fundo
with Philippine Economic Zone Authority, Board ofPhilippine Health Insurance Corporationo And the local
Investment, etc. Incentives such as income tax holidaysgovernment unit where its principal office will be
and special tax regimes are available to foreignlocated.
investment.If the business wish to operate as sole beneficial
Most foreign investors usually start through a Domesticowner of the business, it should register Department of
corporation or a Branch. We recommend to registerTrade and Industry and with the Beureu of Internal
as corporation as there are administrative regulations.Revenue and must also register its business name
Branches, which may be more advantageous taxwith the Department of Trade and Industry through the
wise, cannot be used if the activities to be undertakenBureau of Trade Regulation and Consumer Protection.
are included in the Foreign Investment Negative list.Other details will be explained further by the
Corporations can accommodate Philippine ownership.consultancy firm or the entrepreneur can inquire
Forming or registering a corporation has to complydirectly to Department of Trade and Industry.