Guide To Philippine Business Registration For First-time Investors

Southeast Asia is among the quickest growing regions on earth

. Evidence of this is actually the Philippine economy, which is beginning to boom. Establishing a small business in Philippines will certainly be a sensible move considering its strong economic outlook and strategic location. Businesses can grow by developing a niche market in the country before expanding to a bigger demographic.

There's a considerable number of processes to undergo if you are thinking about putting together an enterprise in the country. Much like everywhere else in the world, you cannot simply turn on neon lights that read "Open" and move forward with business. Philippine business registration could be easy or difficult dependent upon your knowledge of the system. Working with a consultancy firm will be your best option if you're not knowledgeable about what to do.

Assistance from a consultant can make the Philippine business registration process a breeze for you. Should you be establishing a small business in Philippines, you may expect the culmination of the process within 2 to 3 weeks' time. Larger ventures will need a couple of extra days to deal with additional issues. The advice of a professional can help you avoid encountering any major problems.

Company name registration is the first step in the process. The government entity you deal with will depend on the type and size of your endeavor. Philippine law establishes three main business categories: sole proprietorships, partnerships, and corporations.

Your company is a sole proprietorship when you've got complete power over the assets of your business. In this case, you will have to register with the Department of Trade and Industry (DTI). Foreigner-owned companies must also present a small capitalization requirement and secure certification from a local bank. Seek advice from your consultant regarding which paperwork to fill out as well as the start-up cash the Philippine government requires. Anticipate to visit the Securities and Exchange Commission (SEC) as well.

The government will identify your company as a partnership if you have an accompanying investor. This setup demands almost all the same requirements with a few minor differences. You'll have to deal with the DTI if the capital is less than 3,000 Philippine Pesos. Any amount in excess of that will require registration with the SEC. If one of the partners is a foreigner, you need to submit SEC form F-105 in addition to notarized copies of the Articles of Partnership.

Corporations are a bit more complicated to put together. There are two types: Filipino-owned and foreign-owned domestic corporations. A 60-40 split (60% percent Filipino, 40% foreigner) qualifies as Filipino-owned. Anything at all above 40% will qualify as foreigner-owned. For the latter, you need to submit SEC form F-100.

A standard listing of requirements is applicable to all the three types. These include licenses and clearances from various government offices, particularly the local units. Tax identification and verification coming from the Bureau of Internal Revenue (BIR) is one other necessary document that you should secure.

The Philippine business registration process will appear to be frustrating for the first-time business owner. This is the reason it's going to come in handy to employ the assistance of a consultant. Work together with someone tenured and highly well-informed in the field. These professionals may help get your small business in Philippines operational at the soonest possible time.

by: Carmine Lombardi

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