Establishing a business entity in the Philippines is a major milestone for any investor. Whether you are a local founder or a foreign investor, the initial goal is to register a corporation Philippines legally to ensure compliance. With the modern 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 through 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 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 register a corporation philippines by the SEC, unless regulated industries like banking.
Management: You must appoint a President, a Corporate Secretary register a corporation philippines (who is a local resident), and a Treasurer (resident in the Philippines).
Phase 3: Online Submission via eSPARC
Currently, the vast majority of the registration process is completed online. Through the eSPARC system, you will input your Articles of Incorporation, By-laws, and other documents. This platform facilitates the OneSEC processing track, which can issue a provisional approval within a single business days if all information is correct.
Step 4: Secondary Requirements
Getting your Certificate of Incorporation is only the beginning. To legally 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 City Hall. This requires a proof of address and sanitary permit.
BIR Registration: Go to the Bureau of Internal Revenue (BIR) to obtain your Tax Identification Number (TIN), register your books of accounts, register a corporation philippines and secure authority to print invoices.
Phase 5: Employer Social Agencies
When the corporation starts hiring staff, you must 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 register a corporation philippines attention to detail. While the digital shift has simplified the task, many startups still choose to consult professionals to prevent common mistakes. By following these guidelines, you can establish a compliant foundation register a corporation philippines for your enterprise in the growing Philippine economy.