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 correctly to ensure operational legality. With the latest updates to the SEC guidelines, the process has become digitalized through online portals like eSPARC.
Step 1: Choosing Your Corporate Name
The first step is to verify a unique company name. You must check for its availability on the Securities and Exchange Commission (SEC) eSPARC portal. Check that your chosen name does not conflict with existing registrations. Once approved, 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.
Founders: You need at least 2 but not more than fifteen directors. Keep in mind a One Person Corporation (OPC) is also an option for solo 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 banking.
Management: You must appoint a President, a Corporate Secretary (who is a local resident), and a Treasurer register a corporation philippines (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 other register a corporation philippines documents. This platform facilitates the Regular processing track, which can issue a provisional approval within a register a corporation philippines single business days if all information is correct.
Step 4: Secondary Requirements
Getting your Certificate of Incorporation is only the beginning. To fully operate and register a corporation Philippines completely, you must proceed with these local permits:
Local Permit: Acquire this from the specific district where your office is situated.
Mayor’s or Business Permit: File for this at the Municipal Hall. This requires a proof of address and sanitary permit.
BIR Registration: Visit the Bureau of Internal Revenue (BIR) to obtain your Tax Identification register a corporation philippines Number (TIN), register your books of accounts, and secure authority to print invoices.
Phase 5: Employer Contributions
When the corporation starts employing staff, you must 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 demands careful planning and accuracy. While the online shift has made things easier, many owners still prefer to hire legal experts to avoid common mistakes. Following these steps, you can build a solid foundation for your venture in the vibrant Philippine economy.