Setting up a business structure in the Philippines is an essential 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.
Step 1: Securing Your Corporate Name
The beginning of the process is to select a unique business name. You must search 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 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 by the register a corporation philippines SEC, unless regulated industries like banking.
Management: You must appoint a President, a Corporate Secretary (who is a register a corporation philippines local resident), and a Treasurer (resident in the Philippines).
Phase 3: Online Submission via eSPARC
Currently, the vast register a corporation philippines majority of the application is handled online. Through the eSPARC system, you will input your Articles register a corporation philippines of Incorporation, By-laws, and required documents. This platform facilitates the Regular processing track, which often issue a provisional approval within a few business days if all data is accurate.
Step 4: Secondary Registrations
Obtaining your Certificate of Incorporation is just the first part. To fully operate and register a corporation Philippines successfully, you must proceed with these local permits:
Barangay Clearance: Obtain this from the local district where your office is located.
Mayor’s or Business Permit: 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 get your Tax Identification Number (TIN), register your books of accounts, and get authority to print invoices.
Step 5: Employer Social Agencies
When the corporation starts hiring staff, you need to register with social agencies such as the Social Security System (SSS), PhilHealth, and Pag-IBIG. Compliance ensures your register a corporation philippines workers receive legal benefits and protects the entity from legal issues.
Conclusion
Navigating the steps to register a corporation Philippines needs careful planning and attention to detail. While the digital transition has simplified the task, many businesses still choose to consult consultants to prevent delays. By following these guidelines, you can establish a compliant foundation for your business in the growing Philippine economy.