Setting up a business legal entity in the Philippines is an essential milestone for any entrepreneur. Whether you are a Filipino founder or a international investor, the primary goal is to register a corporation Philippines properly to ensure operational legality. With the latest updates to the SEC guidelines, the process has become digitalized through online portals like eSPARC.
Step 1: Reserving Your Corporate Name
Your initial task is to decide on a unique corporate name. You must check for its availability on the Securities and Exchange Commission (SEC) eSPARC portal. Ensure your chosen name is not conflict with existing registrations. Once approved, you can secure the name for 30 to 90 days by paying a nominal reservation fee.
Step 2: Defining Your Articles of Incorporation
Before you register a corporation Philippines, you must define your capitalization and management.
Incorporators: You need a minimum of two but not more than 15 incorporators. Keep in mind a One Person Corporation (OPC) is now an option for individual entrepreneurs.
Capital Requirements: For general domestic corporations, there is no specific paid-up capital required by the SEC, except for specialized industries like finance.
Key Officers: You must designate a President, a Corporate Secretary (who must be a Filipino citizen), and a Treasurer (based locally).
Step 3: Digital Filing via eSPARC
Currently, the bulk of the application is handled online. Through the SEC system, you will upload your Articles of Incorporation, By-laws, and required documents. This platform allows for the Regular processing pathway, which often issue a provisional approval within a few business day if all data register a corporation philippines is accurate.
Step 4: Secondary Registrations
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: Acquire this from the local district where your office is situated.
Mayor’s or Business Permit: File for this at the City Hall. This requires a proof of address and sanitary permit.
BIR Registration: Go to register a corporation philippines the Bureau of Internal Revenue (BIR) to obtain your Tax Identification Number (TIN), register your books of accounts, and secure authority to print invoices.
Phase 5: Employer Contributions
When the corporation starts employing staff, you register a corporation philippines must to register with government institutions including the Social Security System (SSS), PhilHealth, and Pag-IBIG. This register a corporation philippines ensures your workers receive mandatory benefits and safeguards register a corporation philippines the company from penalties.
Summary
Completing the steps to register a corporation Philippines demands careful planning and accuracy. While the digital shift has made things easier, many startups still prefer to consult legal experts to avoid common mistakes. Following these steps, you can build a solid foundation for your venture in the vibrant Philippine economy.