Starting a business legal entity in the Philippines is a major milestone for any investor. Whether you are a Filipino founder or a international investor, the first goal is to register a corporation Philippines legally to ensure operational legality. With the latest updates to the government systems, the workflow has become digitalized through electronic systems like eSPARC.
Step 1: Securing Your Corporate Name
The first step is to verify a unique corporate name. You must verify for its availability via the Securities and Exchange Commission (SEC) eSPARC portal. Check that your chosen name is not conflict with existing entities. Once cleared, you can reserve the name for 30 to 90 days by paying a nominal reservation fee.
Step 2: Defining Your Articles of Incorporation
Prior to register a corporation Philippines, you must define your capitalization and management.
Incorporators: You need a minimum of 2 but not more than fifteen directors. Keep in mind a One Person Corporation (OPC) is now an option for individual entrepreneurs.
Authorized Capital: For typical domestic corporations, there is no specific paid-up capital required by the SEC, except for specialized industries like banking.
Key Officers: You must select a President, a Corporate Secretary (who is a local resident), and a Treasurer (resident in the Philippines).
Phase 3: Online Submission via eSPARC
Currently, the bulk of the application is processed online. Through the SEC system, you will upload your Articles of Incorporation, By-laws, and required documents. The system allows for the OneSEC processing track, which may issue a register a corporation philippines provisional approval in a single business days if all information is correct.
Step 4: Secondary Requirements
Obtaining your Certificate of Incorporation is just the first part. To fully operate and register a corporation Philippines successfully, you must proceed with these local permits:
Barangay Clearance: register a corporation philippines Acquire this from the local district where your office is located.
Mayor’s or Business Permit: File for this at the City Hall. This requires a proof of address and fire safety inspection.
BIR Registration: register a corporation philippines Visit the Bureau of Internal Revenue (BIR) to obtain your Tax Identification Number (TIN), apply register a corporation philippines for your books of accounts, and secure authority to print invoices.
Phase 5: Employer Contributions
Once your corporation starts register a corporation philippines employing people, you are required to register with government institutions including the Social Security System (SSS), PhilHealth, and Pag-IBIG. This ensures your employees receive legal benefits and protects the entity from legal issues.
Conclusion
Navigating the steps to register a corporation Philippines demands careful planning and accuracy. While the online shift has made things easier, many owners still prefer to hire consultants to avoid common mistakes. By following these guidelines, you can build a solid foundation for your venture in the growing Philippine economy.