Setting up a business entity in the Philippines is a significant 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 latest updates to the government systems, the process has become more streamlined through electronic systems like eSPARC.
Step 1: Securing Your Corporate Name
The beginning of the process is to verify a unique business name. You must verify for its availability through the Securities and Exchange Commission (SEC) online system. Ensure your chosen name does not conflict with existing entities. Once cleared, you can reserve the name for 30 to 90 days by paying a nominal reservation fee.
Phase 2: Defining Your Articles of Incorporation
Prior to register a corporation Philippines, you need to define your share structure and leadership.
Incorporators: You need a minimum of two but not more than 15 incorporators. Interestingly, a One Person Corporation (OPC) is currently an option for individual entrepreneurs.
Capital Requirements: For general domestic corporations, there is no specific paid-up capital required by the SEC, except for specialized industries like finance.
Management: You must designate a President, a register a corporation philippines Corporate Secretary (who is a local register a corporation philippines resident), and a Treasurer (resident in the Philippines).
Phase 3: Online register a corporation philippines Submission via eSPARC
Currently, the vast majority of the application is completed online. Through the eSPARC system, register a corporation philippines you will input your Articles of Incorporation, By-laws, and other documents. This platform enables the OneSEC processing track, which can issue a Digital Certificate of Incorporation in a single business days provided all information is correct.
Phase 4: Post-SEC Requirements
Receiving your SEC Certificate is the primary step. To legally operate and register a corporation Philippines successfully, you must move forward with the following:
Barangay Clearance: Obtain this from the local district where your office is located.
LGU License: File for this at the City Hall. This requires a proof of address and fire safety inspection.
BIR Registration: Go to the Bureau of Internal Revenue (BIR) to obtain your Tax Identification Number (TIN), register your books of accounts, and secure authority to print register a corporation philippines 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 entity from penalties.
Final Thoughts
Managing the process to register a corporation Philippines requires patience and attention to detail. While the online transition has made things easier, many businesses still choose to hire consultants to avoid delays. By following these guidelines, you can establish a compliant foundation for your enterprise in the growing Philippine economy.