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Register Business in the Philippines

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By : Eunica Smith 9 or more times read

Submitted 2011-09-29 22:08:57

It involves a tedious and careful planning and assessment of resources and time availability. Business registration also involves coordination with Philippine government agencies such as the Philippines Securities and Exchange commission (SEC), Department of Trade and Industry (DTI), Bureau of Internal Revenue (BIR) and other Philippines government agencies in Metro-Manila, Cebu, Clark and Subic.
Other than these “usual” business registration processes, other businesses may opt to take advantage of the offered incentives by the government such as income tax holidays and special tax regimes. These incentives are available to foreign or local businesses interested in investment in activities that will significantly contribute to national industrialization and socio-economic development, and in export-oriented enterprises. Eligible businesses in these categories may then register their businesses with government agencies such as PEZA and BOI.
As mentioned, business registration in the Philippines involves complex planning because for one, there are different types of company registration in the Philippines. Businesses can be a fully foreign owned branch office, foreign owned representative office, fully foreign owned Domestic Corporation (subsidiary), 60/40 owned Domestic Corporation, regional Headquarters or regional Operating Headquarters.
And because business registration in the Philippines is a step-by-step process, a business registration and consulting company in the Philippines, Kittleson & Carpo Consulting outlined the process of business registration of foreign companies in the Philippines:
· Determine the company formation (Foreign Branch, Foreign or 60/40 Domestic Corporation)
· Determine the Capital Requirement
· Open local bank account
· Register and secure a company name with SEC or DTI
· Identifying Shareholders, Directors, Nominees and Incorporators
· Draft Articles of Incorporation and By-Laws
· Process documents with SEC, BOI, PEZA, BIR, SSS, etc
· Process Mayor's Permit and Business Permit
Typically, registering a business in the Philippines has to go through 3 main government agencies, The Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), and the Bureau of Internal Revenue (BIR).
A Branch of a Foreign Corporation doing business in the Philippines must obtain a license to do so from the Securities and Exchange Commission (SEC) upon registration. The foreign corporation's head office must prove its legal existence in its country of origin, its financial capabilities, and its authorization to set up a branch in the Philippines. The Branch will need to appoint a resident agent in the Philippines who will be in charge of receiving summons and legal processes. This allows the SEC and other entities to obtain jurisdiction over the foreign company.
Starting and setting up a branch normally involves remitting US$200, 000 as capital investment when registering a company with the SEC in the Philippines. Branches engaged in activities involving advance technology, or that employ at least 50 direct employees, are required to inwardly remit a reduced amount of US$100, 000 as assigned capital. Export-oriented branches are NOT subject to minimum assigned capitalization requirements of $200, 000 or $100, 000. Special rules apply for certain types of branch operations. It is advisable for companies to register their remittance with Central Bank of the Philippines or Bangko Sentral ng Pilipinas and obtain a BSRD.
The issuance of a certificate of incorporation from the SEC signifies the corporate existence and juridical personality of a company in the Philippines. If a company failed to obtain a license to do business in the Philippines then that company will be prevented from filing suit in the Philippine courts.
In relation with the government agency, DTI, an individual or a company representative may choose to operate a business as the sole beneficial owner of a business. This is common registration process for small retail trade operations or independent contractors of services.
In relation with the government agency, BIR, all persons subject for internal revenue taxes are also required to obtain a Taxpayer Identification Number (TIN) & register and keep books of account. Persons with gross sales or receipt exceeding P150, 000 in any quarter must submit audited financial statements with their tax returns. The SEC requires stock corporations with paid-up capital of at least P50, 000 upon registration, including branches of foreign corporations, to file the report of an independent certified public accountant (CPA) on their financial statements.
Before commencing operations in the Philippines, businesses must also register in other government mandated agencies such as the the Social Security System (SSS), the Home Development Mutual Fund (HDMF), the Philippine Health Insurance Corporation (Phil-Health), and the local government unit where its principal office will be located.

Author Resource:- The author works as a business consultant in Kittleson & Carpo Consulting, a Philippine business registration and consulting firm. To know more about this industry and what the firm can do for your business, visit: Philippine Business |Philippine Visa

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<!DOCTYPE HTML PUBLIC '-//W3C//DTD HTML 4.01 Transitional//EN' 'http://www.w3.org/TR/html4/loose.dtd'> <html><head><title>Article Directory - My Articles World | Register Business in the Philippines</title></head><body><h3> Register Business in the Philippines</h3> By: Eunica Smith It involves a tedious and careful planning and assessment of resources and time availability. Business registration also involves coordination with Philippine government agencies such as the Philippines Securities and Exchange commission (SEC), Department of Trade and Industry (DTI), Bureau of Internal Revenue (BIR) and other Philippines government agencies in Metro-Manila, Cebu, Clark and Subic. Other than these “usual” business registration processes, other businesses may opt to take advantage of the offered incentives by the government such as income tax holidays and special tax regimes. These incentives are available to foreign or local businesses interested in investment in activities that will significantly contribute to national industrialization and socio-economic development, and in export-oriented enterprises. Eligible businesses in these categories may then register their businesses with government agencies such as PEZA and BOI. As mentioned, business registration in the Philippines involves complex planning because for one, there are different types of company registration in the Philippines. Businesses can be a fully foreign owned branch office, foreign owned representative office, fully foreign owned Domestic Corporation (subsidiary), 60/40 owned Domestic Corporation, regional Headquarters or regional Operating Headquarters. And because business registration in the Philippines is a step-by-step process, a business registration and consulting company in the Philippines, Kittleson & Carpo Consulting outlined the process of business registration of foreign companies in the Philippines: · Determine the company formation (Foreign Branch, Foreign or 60/40 Domestic Corporation) · Determine the Capital Requirement · Open local bank account · Register and secure a company name with SEC or DTI · Identifying Shareholders, Directors, Nominees and Incorporators · Draft Articles of Incorporation and By-Laws · Process documents with SEC, BOI, PEZA, BIR, SSS, etc · Process Mayor's Permit and Business Permit Typically, registering a business in the Philippines has to go through 3 main government agencies, The Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), and the Bureau of Internal Revenue (BIR). A Branch of a Foreign Corporation doing business in the Philippines must obtain a license to do so from the Securities and Exchange Commission (SEC) upon registration. The foreign corporation's head office must prove its legal existence in its country of origin, its financial capabilities, and its authorization to set up a branch in the Philippines. The Branch will need to appoint a resident agent in the Philippines who will be in charge of receiving summons and legal processes. This allows the SEC and other entities to obtain jurisdiction over the foreign company. Starting and setting up a branch normally involves remitting US$200, 000 as capital investment when registering a company with the SEC in the Philippines. Branches engaged in activities involving advance technology, or that employ at least 50 direct employees, are required to inwardly remit a reduced amount of US$100, 000 as assigned capital. Export-oriented branches are NOT subject to minimum assigned capitalization requirements of $200, 000 or $100, 000. Special rules apply for certain types of branch operations. It is advisable for companies to register their remittance with Central Bank of the Philippines or Bangko Sentral ng Pilipinas and obtain a BSRD. The issuance of a certificate of incorporation from the SEC signifies the corporate existence and juridical personality of a company in the Philippines. If a company failed to obtain a license to do business in the Philippines then that company will be prevented from filing suit in the Philippine courts. In relation with the government agency, DTI, an individual or a company representative may choose to operate a business as the sole beneficial owner of a business. This is common registration process for small retail trade operations or independent contractors of services. In relation with the government agency, BIR, all persons subject for internal revenue taxes are also required to obtain a Taxpayer Identification Number (TIN) & register and keep books of account. Persons with gross sales or receipt exceeding P150, 000 in any quarter must submit audited financial statements with their tax returns. The SEC requires stock corporations with paid-up capital of at least P50, 000 upon registration, including branches of foreign corporations, to file the report of an independent certified public accountant (CPA) on their financial statements. Before commencing operations in the Philippines, businesses must also register in other government mandated agencies such as the the Social Security System (SSS), the Home Development Mutual Fund (HDMF), the Philippine Health Insurance Corporation (Phil-Health), and the local government unit where its principal office will be located. Author Resource:-> The author works as a business consultant in Kittleson & Carpo Consulting, a Philippine business registration and consulting firm. To know more about this industry and what the firm can do for your business, visit: <a href="http://doingbusinessinthephilippines.com/general/register-company-philippines/">Philippine Business</a> |<a href="http://www.visasphilippines.com/">Philippine Visa</a> Article From <a href='http://myarticlesworld.com/'>Article Directory - My Articles World</a> </body></html>

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