- The Philippines has been one of the most dynamic economies in the East Asia and Pacific region with a growing population and a strong consumer demand supported by a vibrant labor market and robust remittances. If you are willing to set up any industry, you need to register company in Philippines be a great idea and opportunity that the company can take advantage of. Additionally, with political stability and economic growth, the Philippines is committed to improving its overall growth. In 2021, the Philippines implemented the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act which helps in standardized the incentive regime across 14 investment promotion agencies. \
- The economic growth of the Philippines is at a pace of 7.6% in 2022, which is the fastest rate of growth recorded by the Philippines since 1976. Economic growth is a result of the government trying to pursue large investments in both human and physical capital. To boost growth over the medium and long term. Further, the Philippines is all set to join the region of small groups of countries in the Asia-Pacific region that have a GDP exceeding one trillion by 2034, which is a result of a significant transformation of the structure of the Philippines and the Philippine economy. Despite. Under the shock endured during the COVID-19 pandemic and global headwinds, such as high global commodity price and tight global financial conditions, the Philippines managed to reduce the poverty rate. From 23.5% in 2015 to 18.1% in 2021. Making it a great opportunity for entities willing to register company in Philippines.
- Moreover, the projection for the economy to rise to 5.9% by 2024 also makes it an appropriate stop to register business in the Philippines. Thus, if you are willing to register a business in the Philippines then Tetra Consultants can help you with their wide range of business services which comprises various services such as offshore company incorporation, obtaining offshore financial licenses, international trademark registration, and other ancillary services. Tetra Consultants can make it much easier to operate a fully functional business in the Philippines.
Requirements for registering a business in the Philippines
- There are various requirements for registering a business in the Philippines which might vary depending on the type of business entity and the business structure. Below are the general requirements for corporations. If you are willing to know the specific requirements for your company, you can trust Tetra Consultants wherein our experts will provide you with accurate advice on the specific documentation required and will ensure that all your filing timelines are compiled without any delay.
- A minimum of five to a maximum of 15 directors
- For domestic corporations, more than half of the directors are required to be residents of the Philippines. Hence, Tetra Consultants can provide nominee director and shareholder services in the corporation.
- A minimum of 4 office holders which are: president as the company signatory, corporate secretary, treasurer of company’s finances, and compliance officer.
- There are three variants of foreign equity which are as follows:
- >40.01% Foreign Equity
- <40% Foreign Equity
- 0% Foreign Equity (100% Filipino-owned)
- Capital requirements depend on the foreign equity bracket:
- 0% Foreign Equity → US$100 or approximately ₱5,000
- <40% Foreign Equity → US$100 or approximately ₱5,000
- >40.01% Foreign Equity → US$200,000 or approximately ₱4,800,000
Steps to register business in the Philippines
The steps for registering a business in the Philippines is as follows:
Step 1: Register your business name and business with Securities and Exchange Commission (SEC)
- Tetra Consultants will begin by checking if your desired business name is available through the SEC’s online platform or by visiting the Security and Exchange Commission (SEC).
- If the name is available, Tetra Consultants will proceed to register/reserve it by following these steps:
- Prepare and notarize the necessary documents, including the Articles of Incorporation, by-laws, Treasurer’s Affidavit, and a Joint Affidavit of two incorporators. This affidavit assures the SEC that you will promptly change the name if required by legal directives.
- Note: If the Articles of Incorporation already contain this commitment, the Joint Affidavit is not necessary. And if you do not have Articles of Incorporation or any other legal document Tetra Consultants experts can draft that for you.
- Then Tetra Consultants will be submitting the notarized documents to the SEC Office located in Mandaluyong City. Tetra Consultants experts will make sure to comply with all the documents once the engagement gets started and will also prepare drafts for legal documents.
- After due processing, claim your official SEC Certificate of Registration, you can mark the formal establishment of your business.
- You may feel it to be a lengthy process with lots of complexities but if you start your engagement with Tetra Consultants you will preserve the preferred name for your company and will make sure to comply with all the deadlines through our offshore company incorporation.
Step 2: Acquire Barangay Clearance
- After registering the business name Tetra Consultants will then head to the barangay office where your business is located to obtain and complete the required application form.
- Present the following documents along with your completed application form:
- Certificate of Business Registration from the SEC
- Two (2) valid IDs
- Proof of Address, which may be a Contract of Lease (if rented) or Certificate of Land Title (if owned).
- This process ensures that your business is officially recognized and registered within the local community, establishing a strong presence in your chosen location.
- Tetra Consultants have an experienced group of experts who can apply for such offshore financial licenses on your behalf for your company without making you leave your desk.
Step 3: Acquire business permit from mayor’s office
- After which our experts will be heading to the municipal office in the area where your business is situated. Obtain and complete the necessary application form.
- We ensure to submit your completed application form along with the following documents:
- Certificate of Business Registration from SEC
- Barangay Clearance Certificate
- Two (2) valid IDs
- Proof of Address, which may be a Contract of Lease (if rented) or Certificate of Land Title (if owned).
- Processing Time: Allow at least one week for document processing. However, depending on industry-specific permit requirements, it may take longer. Ensure all documents are complete for a smoother process.
Step 4: Registering with the Bureau of Internal Revenue (BIR)
- Once you have obtained the Mayor’s Business Permit, the next crucial step is registering with the Bureau of Internal Revenue (BIR). To initiate this process, Tetra Consultants will be visiting the Regional District Office (RDO) that corresponds to the location of your business. Here, you will be provided with a registration form, specifically the BIR Form 1903 designed for Partnership/Corporation setups.
- Submit the completed registration form along with a set of vital documents including the Certificate of Registration from SEC, Barangay Clearance, and the Business Permit from the Mayor’s Office. Additionally, furnish proof of your business address, which may be a Contract of Lease (if rented) or a Certificate of Land Title (if owned), and present any applicable valid IDs.
- Next, Tetra Consultants will settle the Registration Form (BIR Form 0605) and, if relevant, the Documentary Stamp Tax (BIR Form 2000). Subsequently, our experts will ensure to register your book of accounts and receipts/invoices, ensuring compliance with BIR guidelines. Finally, upon successful processing, claim your Certificate of Registration (BIR Form 2303) to solidify your business’s legal standing. This comprehensive process establishes your business within the taxation framework, ensuring smooth operations and compliance with regulatory standards can be done with the offshore company incorporation services provided by Tetra Consultants.
Step 5: Corporate bank account opening
- Having a bank account is important for business to manage their funds and also to track down the investments.
- Tetra Consultants’ experts can assist you with corporate bank account opening in the bank preferred by the clients within the 4 weeks after the incorporation.
Conclusion
- Thus, a foreign entity trying to register company in Philippines might be confusing because of the complexities of rules and regulations. This is where Tetra Consultants come to their role. Our experts will help you throughout your incorporation process and will also make sure to file all the necessary documents with the authorities within the timeframe.
- Contact us to find out more about the registering a business in the Philippines. Our team of experts will revert within the next 24 hours.
