How to Open a Company in the Philippines

How to Open a Company in the Philippines

How to Open a Company in the Philippines

We'll cover some of the basic procedures in opening a company in the Philippines. Whether a sole proprietorship, partnership, corporation, branch office, or representative office the process is almost the same for each setup, except the sole proprietorship. The biggest difference between setting up a company is only in the documentary requirements.

All of the company organizations are easy to process but the simplest type is a sole proprietorship, it is more of a declaration through the Department of Trade and Industry to allow yourself to operate with a business name. You are fully liable for all of the business carried out under the trade name. The tax rate for the business is 32%, all income can be declared same as personal income. The process is to register the business name at DTI, afterward place the minimal capitalization in a local bank of your choosing in a treasury account. The amount varies greatly between foreigner and Filipino citizen 5,000 Php for a local and 200,000 USD for a foreigner to establish. This amount can be reduced if you are participating in export business, employing more than 50 individuals, or utilizing new and advanced technology. Return to DTI with the certificate from the bank, your application, and name reservation, they should issue in 2-3 days a certificate of registration for your business.

For the other types of business registrations all are being transacted through the Securities and Exchange Commission SEC.

The first step with each kind of setup is to reserve the business name. This is crucial in the filing out of all the the other documents you will need during the registration process.

Name reservation is done at the SEC on the third floor. Usually reservation can take place instantly, however sometimes if the name is too closely related to another business name, you will need to request a manual override of the name, which could take up to 5 days to have complete.

After you have your name reservation in hand, you fill up the application requirements. There is a slight variation between company structures here, but they are all quite simple to comply with. Either articles of incorporation or partnerships for new corporations. For existing companies you need to submit all the documents showing your company exists abroad. Articles of Incorporation, Financial Statements and an authority from the company to open an office in the Philippines, these must be authenticated in the nearest Philippine Embassy to the host country for verification.

Once the name reservation is made the treasury account must be set up in a local bank. This is a pretty simple process but I'll go over it in another post. Depending on which formation you are setting the amount needed in the treasury will vary. Once the amount is deposited the bank should issue you a certificate of remittance or deposit on the funds.

Take the six copies application requirements, name reservation, and bank certificate to the 2nd floor of the SEC to the Monitoring and Regulation Dept. Once you have it stamped and received, you can go downstairs to the first floor and pay the cashier. After you have paid you will get a receipt and take it across the hall to the receiving room. Finally once it is stamped and received you must wait 3-5 business days for certificate of registration release. They will provide you a contact number to check if the documents have been released already.

It is actually a relatively simple process once you have prepared the registration requirements.

You may contact us at info@tripleiconsulting.com or visit http://www.tripleiconsulting.com

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