Establishing a business legal entity in the Philippines is an essential milestone for any investor. Whether you are a Filipino founder or a foreign investor, the primary goal is to register a corporation Philippines legally to ensure compliance. With the modern updates to the Revised Corporation Code, the process has become digitalized through electronic systems like eSPARC.
Step 1: Choosing Your Corporate Name
Your initial task is to verify a unique business name. You must verify for its availability via the Securities and Exchange Commission (SEC) eSPARC portal. Make sure your chosen name is not resemble existing entities. Once approved, you can secure the name for a specific period by paying a small reservation fee.
Phase 2: Defining Your Articles of Incorporation
When you register a corporation Philippines, you need to define your share structure and management.
Incorporators: You need a minimum of two but not more than fifteen incorporators. Keep in mind a One Person Corporation (OPC) is currently an option for individual entrepreneurs.
Capital Requirements: For general domestic corporations, there is hardly any minimum paid-up capital demanded by the SEC, except for specialized industries like insurance.
Management: You must select a President, a Corporate Secretary (who must be a Filipino citizen), and a Treasurer (resident in the Philippines).
Phase 3: Digital Filing via eSPARC
Currently, the vast majority of the registration process is completed online. Through the SEC system, you will input your Articles of Incorporation, By-laws, and other documents. The system enables the Regular processing track, which can issue a Digital Certificate of Incorporation in a single business day if all data register a corporation philippines is correct.
Phase 4: Post-SEC Registrations
Receiving your Certificate of Incorporation is just the first part. 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.
Mayor’s or Business Permit: File for this at the register a corporation philippines City Hall. This needs a proof of address and sanitary permit.
Tax Compliance: Visit the Bureau of Internal Revenue (BIR) to obtain your Tax Identification Number (TIN), apply for your books of accounts, and get authority to print invoices.
Step 5: Employer Contributions
Once register a corporation philippines your corporation starts employing people, you are required to register with government institutions such as register a corporation philippines the Social Security System (SSS), PhilHealth, and Pag-IBIG. Compliance ensures your workers receive mandatory benefits and safeguards register a corporation philippines the company from penalties.
Final Thoughts
Completing the steps to register a corporation Philippines needs careful planning and attention to detail. While the online transition has made things easier, many businesses still prefer to consult legal experts to avoid common mistakes. Following these guidelines, you can build a solid foundation for your enterprise in the vibrant Philippine economy.