REGISTERING A BUSINESS IN THE PHILIPPINES
- November 19, 2019
- Posted by: Joana Marie
- Categories: Business, Uncategorized
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Are you ready to make your dream business into reality? Got plans for registering a company in the Philippines? Let’s make your business startup straightforward. Here’s a guide we made for you on how to obtain the necessary certificates and licenses to operate a business in the Philippines. But first, you must be familiar with the different types of business structures depending on the exact nature you wish to conduct.
ENTITY STRUCTURES FOR DOING BUSINESS IN THE PHILIPPINES
Sole Proprietorship
A sole proprietorship is the most simple form of business entity. It is owned by a single individual who has full ownership and control of all the assets, is personally obligated to settle all liabilities, shoulders the losses as well as enjoys the profits of the business to the exclusion of others. This entity is ideal for franchisers or small business owners.
Sole Proprietorship
Partnership
Although with similar requirements for a single proprietorship, a partnership differs from the extent of the liability. It can be established for a smaller business but can be operated on a wide scale too. A partnership is treated as a judicial person with a separate legal entity from its members.
How to Register a Partnership in the Philippines?
Register your business name in the Securities and Exchange Commission (SEC).
Basic Requirements:
- Name Verification Slip
- Articles of Partnership (AP)
- Joint Affidavit of two partners to change the partnership name (not required if already stated in the AP)
Additional Requirements:
- Endorsement/clearances from other government agencies, if applicable
- For partnership with a foreign national partner, submit FIA Form 105
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Register in the local barangay. Secure a Barangay Business Clearance.
Register with the Social Security System.
Companies that hire employees must register their business and their employees with the SSS as compliance with the Social Security Law. This ensures that the employer remits the contribution of the employees to the agency for their employee’s benefit.
Obtain a Business Permit and Licenses from the Mayor’s Office.
Register with the Bureau of Internal Revenue (BIR). Obtain the BIR Certifcate of Registration.
Corporation
A corporation is established under the Corporation Code and regulated by the Securities and Exchange Commission (SEC), composing of juridical persons acting as a single entity and recognized as such in the law. The shareholders have limited liability up to the extent of the shared capital. A minimum paid-up capital is necessary depending on the industry selected and equity.
- One Person Corporation
- 100% Filipino-Owned
- Filipino Corporation: 60% Filipino-Owned and 40% Foreign-Owned
- Domestic Foreign-Owned Corporation: 40.1% to 100% Foreign-Owned
A corporation can be either considered a stock or non-stock company regardless of nationality. As a for-profit corporation, a stock corporation has authorized capital stock, which is divided into shares to the investors. A non-stock corporation, however, doesn’t issue shares of stock and operate a for-profit undertaking.
How to Register a Corporation in the Philippines?
The incorporation of a company is lodged in the Securities and Exchange Commission.
- Verify the availability of business name in the SEC Company Registration System. Once available, file the application for incorporation.
- Secure a bank deposit receipt for the paid-in capital.
- Submit the notarized documents to SEC office in Mandaluyong:
- Articles of incorporation
- Corporate By-Laws
- Treasurer’s Affidavit
- Affidavit of Undertaking stating change of corporate name
- Afterward, claim the SEC Certificate of Registration.
- Apply for a Barangay Business Clearance.
- Acquire a Mayor’s Permit.
- Register with the Bureau of Internal Revenue (BIR).
Effortless
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IDO Consultancy and Business Support, Inc. provides end-to-end support for business establishment procedures, planning, as well as registration with pertinent government agencies within Metro Manila. We empower clients to commence a business with ease and confidence that everything is complete and compliant to Philippine laws and regulations.
We’ll take out the hustle and bustle for you to make the registration process smooth and simple. Get in touch today to get started with your consultation.
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