How to Set Up a Domestic Corporation in the Philippines

A domestic corporation, under Philippine laws, is a business structure similar to a Private Limited Company (PLC) or Limited Liability Company (LLC) in other countries. Like the two business entities, a domestic corporation has its own liabilities and is accountable for its debts. The shareholder will only be responsible for the number of their shares in the capital.

A Domestic corporation obtains its juridical personality after it claims its Certificate of Registration from the Securities and Exchange Commission (SEC). SEC is the government agency managing enterprises in the country.

• The Articles of Incorporation must have at least one (for OPC’s) to fifteen (15) incorporators. 
• Each incorporator must be a signatory to the Articles of Incorporation who are original members of the corporation. 
• Each incorporator must have at least one share of the corporation’s capital stock. 

There are various types of domestic corporations based on the nationality of their shareholders. Following the Philippine Foreign Investments Act of 1991, here are the four classes of domestic corporations in the Philippines:

• One hundred percent (100%) Filipino-owned domestic corporation
• Sixty percent (60%) Filipino equity and forty percent (40%) Foreign equity 
• Forty percent (40%) Filipino equity and sixty percent (60%) Foreign equity
• A domestic corporation that allows one hundred percent (100%) foreign ownership

• The minimum paid-up capital requirement for a domestic market enterprise for domestic corporations with over forty percent (40%) foreign ownership is the Philippine Peso equivalent of USD$200,000. 
• The minimum paid-up capital requirement for a domestic market enterprise that is considered a pioneer in the business, uses advanced technology, or has at least 15 Filipino employees, is the Philippine Peso equivalent of USD$100,000.

• Articles of Incorporation
• By-laws of the corporation
• One valid ID for each incorporator
• A copy of the passport for foreign incorporators
• Tax Identification Number of the local incorporator
• Proof of Address

• Head to the Securities and Exchange Commission (SEC) to have your business name registered and approved. You will be issued a Certificate of Registration once approved.
• Visit local government agencies to secure:
  1. Barangay Clearance from your local Barangay Hall
  2. Business Permit from the Business Permit and Licensing Office (BPLO) of your local City Hall
• Process Corporate Taxation Registration from the Bureau of Internal Revenue (BIR) and acquire a Taxpayer Identification Number (TIN) for your company. 
• Register your employees to mandated benefits:
  1. Social Security System (SSS)for social security 
  2. Home Development Mutual Fund (HDMF or Pag-Ibig Fund) for housing loans
  3. Philippine Health Insurance (PhilHealth) for health insurance benefits.

Establishing a domestic corporation in the Philippines can be difficult, especially for beginners. Good thing you can save time, resources, and energy when you call in professionals to help you establish a local corporation.

Business Registration Philippines is a website dedicated to helping investors, business owners, and other stakeholders establish and incorporate their enterprises.

Our expertise ranges from Accounting, Finance, Human Resources, Business Process Outsourcing, Product Registration, Taxation, and more. It is a microsite of Triple i Consulting Inc. Triple i Consulting Inc’s knowledge and skills in the Philippine taxation system, business establishment, and incorporation for over 14 years.

Triple i Consulting is the first ISO 9001:2008 company in the Philippines to offer business registration services to its clients.

It also has specialization in accounting, business registration, business incorporation, FDA licensing, and FDA product registration, to name a few.

Experience a seamless process of establishing your domestic corporation with our expert guidance.

Contact us to get proper guidance on establishing your domestic corporation by booking an initial consultation:

• Fill out the form below
• Contact Us here
• Call us at +63 (02) 8540-9623
• Email us at info@tripleiconsulting.com

Book an initial consultation with one of our domestic corporation experts today!