Starting a business legal 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 government systems, the procedure has become more streamlined 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 via the Securities and Exchange Commission (SEC) online system. Make sure your chosen name does not resemble existing entities. Once cleared, you can hold the name for 30 to 90 days by paying a nominal reservation fee.
Step 2: Drafting Your Corporate Structure
When you register a corporation Philippines, you must define your share structure and leadership.
Incorporators: You need a minimum of two but not more than 15 directors. Keep in mind a One Person Corporation (OPC) is now an option for individual entrepreneurs.
Capital Requirements: For typical domestic corporations, there is no specific paid-up capital demanded register a corporation philippines by the SEC, unless regulated industries like finance.
Management: You must appoint 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 vast majority of the application is handled online. Through the eSPARC system, you will input your Articles of Incorporation, By-laws, and required documents. This platform facilitates the Regular processing track, which can issue a provisional approval within a single business days if all data is register a corporation philippines correct.
Step 4: Secondary Requirements
Getting your Certificate of Incorporation is only the beginning. To legally operate and register a corporation philippines register a corporation Philippines completely, you must proceed with the following:
Local Permit: Acquire this from the register a corporation philippines specific district where your office is situated.
Mayor’s or register a corporation philippines Business Permit: Apply for this at the Municipal Hall. This requires a lease contract and sanitary permit.
Tax Compliance: Visit the Bureau of Internal Revenue (BIR) to obtain your Tax Identification Number (TIN), apply for your books of accounts, and secure authority to print official receipts.
Phase 5: Government Contributions
Once your corporation starts 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 mandatory benefits and safeguards the company from penalties.
Final Thoughts
Completing the steps to register a corporation Philippines requires careful planning and accuracy. While the online shift has made things easier, many owners still prefer to hire legal experts to avoid delays. Following these steps, you can build a solid foundation for your venture in the vibrant Philippine economy.