Establishing a business structure in the Philippines is a major milestone for any business owner. Whether you are a local founder or a international investor, the first goal is to register a corporation Philippines properly 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 verify for its availability via the Securities and Exchange Commission (SEC) online system. Make sure your chosen name does not clash with existing entities. Once cleared, you can reserve the name for a specific period by paying a small reservation fee.
Phase 2: Structuring Your Articles of Incorporation
Prior to 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 currently an option for solo entrepreneurs.
Authorized Capital: For most domestic corporations, there is hardly any minimum paid-up capital demanded by the SEC, register a corporation philippines unless regulated industries like banking.
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 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 data 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. register a corporation philippines This requires a proof of address and sanitary permit.
BIR Registration: Visit the Bureau of Internal Revenue (BIR) to obtain your Tax Identification 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), register a corporation philippines PhilHealth, and Pag-IBIG. This ensures your employees receive mandatory benefits and safeguards the company from penalties.
Summary
Completing the steps to register a corporation Philippines demands patience and accuracy. While the digital shift has register a corporation philippines simplified the task, many owners still choose to consult legal experts to prevent delays. By following register a corporation philippines these steps, you can establish a solid foundation for your venture in the growing Philippine economy.