Establishing a business entity in the Philippines is a significant milestone for any investor. Whether you are a Filipino founder or a foreign investor, the initial goal is to register a corporation Philippines legally to ensure protection. With the recent updates to the Revised Corporation Code, the workflow has become faster through electronic systems like eSPARC.
Phase 1: Securing Your Corporate Name
The beginning of the process is to select a unique business name. You must search for its availability through the Securities and Exchange Commission (SEC) online system. Make sure your chosen name does not resemble existing entities. Once cleared, you can reserve the name for a specific period by paying a small reservation fee.
Phase 2: Structuring Your Corporate Structure
When you register a corporation Philippines, you need to define your share structure and leadership.
Founders: You need at least 2 but not more than fifteen directors. Note that a One Person Corporation (OPC) is also an option for solo entrepreneurs.
Authorized Capital: For typical domestic corporations, there is hardly any minimum paid-up capital demanded by the SEC, unless regulated industries like banking.
Management: You must designate a President, a Corporate Secretary (who must be a Filipino citizen), and a Treasurer (based locally).
Step 3: Online Submission 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. register a corporation philippines This platform facilitates the Regular processing pathway, which often issue a provisional approval within a few business day if all data is accurate.
Phase 4: Secondary Registrations
Obtaining your SEC Certificate is just register a corporation philippines the first part. To fully operate and register a corporation Philippines successfully, you must proceed with these local permits:
Barangay Clearance: Obtain this from the local district where your office is located.
LGU License: register a corporation philippines Apply for this at the City Hall. This needs a proof of address and fire safety inspection.
Tax Compliance: Go to the Bureau of Internal register a corporation philippines Revenue (BIR) to get your Tax Identification Number (TIN), register your books of accounts, and get authority to print invoices.
Step 5: Employer Social Agencies
When the corporation starts hiring staff, you need to register with government institutions such as the Social Security System (SSS), PhilHealth, and Pag-IBIG. This ensures your workers receive mandatory benefits and protects the company from legal issues.
Summary
Navigating the steps to register a corporation Philippines demands careful planning and accuracy. While the digital shift has simplified the task, many startups still prefer to consult register a corporation philippines professionals to prevent common mistakes. Following these guidelines, you can build a strong foundation for your venture in the vibrant Philippine economy.