A good start is required in order to ensure the success of any business. One of the best ways to get a business up and running is to make sure everything is registered and legal before starting operations. While it might seem challenging, registering a corporation in the Philippines isn’t a difficult process, especially for small to medium-sized companies.
Doing research ahead of time and knowing more about the registration process will allow you to make sound decisions during the initial stages of establishing a company.
In this article, we give you a closer look at some of the steps involved in registering a corporation in the Philippines.
The first step is to verify the availability of your preferred corporate name with the Securities and Exchange Commission (SEC). Go to the SEC’s official website, or make a personal appearance at their office, which is located in Mandaluyong. This typically takes one whole day to complete. Once the name has been verified and approved by the SEC, you will need to pay a filing fee to reserve the name for a month.
Next, you will need to file the application for incorporation within a month, otherwise, you will be required to pay an additional fee in order to extend the deadline. Those registering will need to complete all required documents, such as Articles of Incorporation, Treasurer’s Affidavit, By-Laws, and Joint Affidavit of Two Incorporators. All required documents have to be notarized.
After all the required documents are submitted, the SEC office will then process your application. The release of the SEC license/certificate typically takes from one to three days.
All of these documents are available on the SEC website. You may also opt to simply purchase them as a bundle from the SEC Office’s “Green Lane” for around Php 800.
Next, you will need to file the application for incorporation within a month, otherwise, you will be required to pay an additional fee in order to extend the deadline. Those registering will need to complete all required documents, such as Articles of Incorporation, Treasurer’s Affidavit, By-Laws, and Joint Affidavit of Two Incorporators. All required documents have to be notarized.
After all the required documents are submitted, the SEC office will then process your application. Release of the SEC license/certificate typically takes from one to three days.
Purchasing the bundle is a very convenient option, as it can help you save plenty of time. Documents obtained from the SEC website sometimes do not match the ones sold at the SEC office’s Green Lane. Additionally, the documents included in the bundle are easier to accomplish, and also comes with four book ledgers that are required by the SEC upon registration.
Visit the barangay where you plan to operate your business to request for clearance. Once you have obtained your barangay clearance, you will need to submit the following documents: two valid IDs, a Certificate of Business Registration from the SEC, and Proof of Address (Certificate of Land Title or Contract of Lease).
Go to the municipal office in the location of your business and request for a business permit form.
You will need to submit the following requirements in order to obtain a mayor’s permit:
All corporations need to have a company taxpayer identification number or TIN, registration of its books and accounts, and permission to issue official receipts from the Bureau of Internal Revenue (BIR).
Head to the Regional District Office in charge of your business’ location and request for a copy of an Application for Registration of Partnership or Corporation (BIR Form 1903).
After completing the business permit, submit the following documents: barangay clearance, two valid IDs, a Certificate of Business Registration from the SEC, and Proof of Address (Certificate of Land Title or Contract of Lease). Once all requirements are submitted, pay all required fees and register your book of accounts and receipts.
Employee registration is accomplished at multiple agencies and offices and can take around two weeks or more to process. The law requires companies to enroll all employees with the Department of Labor and Employment (DOLE), Philippine Health Insurance Corporation (PhilHealth), Social Security System (SSS), and Home Development Mutual Fund (HDMF).
All the steps mentioned above are simply a general overview designed to give you an idea of what you need to do in order to register a corporation. Other steps might be required, especially if the business you plan to establish requires special clearances and permits.
Planning to set up a business in the Philippines? Contact us at FilePino today! Call +63.917.892.2337 or (+632).7792.9100, or send us an email at info@filepinostg.wpengine.com
