Setting Up a Representative Office in the Philippines

A parent company sets up a representative office in another country to test the business potential of their products and services in a foreign land. It is an extension of its parent company situated in another country. The business structure may be either a contact center or a liaison office. 

A Philippine representative office is not allowed to earn revenue from the Philippines. Its business functions are restricted to administrative support, promotion, and dissemination of information about the leading company’s products and services. The head office shoulders all business expenses made by the Philippine representative office.

Under Philippine laws, a representative office situated in the Philippines can only be allowed to perform the following business activities:

• Execute accounting tasks.
• Engage in administrative functions.
• Information dissemination about the products and services of its head office.
• Manage the quality control of the company’s products. 
• Perform data entry chores.
• Perform market research.
• Promotion of products and services of its head office.
• Guide customers from its head office.

• The parent company may outsource some of its operations to the representative office, providing them with savings on wages. Outsourced services may include administrative jobs, accounting, bookkeeping, and customer service.
• A representative office may enjoy tax exemptions as it does not generate revenues.

Company name registration

The first step toward Philippine representative office registration is to reserve your company name with the Securities and Exchange Commission (SEC). 

Minimum capital requirements

The minimum paid-up capital for establishing a representative office in the Philippines is US$30,000. The parent company should remit yearly to cover the local office’s operation expenses.

Documentary Requirements

• • Authenticated/apostilled copy of the parent company’s board resolution approving the establishment of a Philippine representative office and appointing a resident agent living in the Philippines as the contact person for receiving summons, notices, and managing legal proceedings on behalf of the parent company
  • Authenticated/apostilled Company Registration
  • Affidavit of financial solvency of the parent company
  • Notarized SEC Application Form F-104
  • Clearances from government agencies, if applicable.
  • Proof of inward remittance of US$30,000
  • Resident agent’s acceptance of the appointment
  • Financial statements are categorized as follows:
    • For companies whose home country requires audited financial statements (AFS), the AFS should be presented:
      • Authenticated before the Philippine Consulate/Embassy or apostilled
      • Audited by an independent certified public accountant from the home country
      • For the preceding year, at the time of filing for the application
    • For AFS with dates that exceed the 1-year requirement, here are the requirements:
      • Authenticated AFS available at the date of filing for application
      • Authenticated unaudited financial statements with the date not exceeding 1-year before the filing of the application signed by an officer of the parent company
    • For companies whose home country does not require AFS, the requirements are:
      • Authenticated unaudited financial statements with the date not exceeding 1-year before the filing of the application signed by an officer of the parent company
      • Authenticated certification signed under oath by the applicant’s legal counsel stating that the applicant is not required to prepare and submit an AFS with citation of the law from which the action is based. The applicant should print a copy of the said law for reference.

• Register your business with SEC. 
• Process local permits from your local barangay hall and city hall:
  1. Barangay Clearance
  2. Mayor’s Permit
  3. Business Permit
• Open a non-resident account from a local bank and pay minimum capital requirements.
• Complete SEC Form F-104 and pay the dues. 
• Secure a Certificate of Registration from SEC and proceed to the Records Division for registration.
• Apply for registration with the Bureau of Internal Revenue (BIR). 
• If hiring local employees, apply for registration with Pag-Ibig, Philhealth, and SSS.

Expand your business development by setting up a representative office in the Philippines. To make things easier, enlist the help of professionals. 

Business Registration Philippines is a website dedicated to helping investors, business owners, and other stakeholders establish and incorporate their enterprises. Topics range from Accounting, Finance, Human Resources, Business Process Outsourcing, Product Registration, Taxation, and more. It is a microsite of Triple i Consulting Inc. 

Business Registration Philippines, in partnership with Triple i Consulting, is committed to helping you in setting up a representative office through these services:

• Accounting services
• Bookkeeping services
• Corporate compliance
• Corporate office set-up
• Payroll outsourcing services
• Creation of office manual and labor contracts
• Much more

Triple i Consulting has deep knowledge and skills in the Philippine government system, processing government documents and securing business certificates dating back to 10 years. Specializing in accounting, business registration, business incorporation, FDA licensing, and FDA product registration, Triple i Consulting is the first ISO 9001:2008 company in the Philippines to offer business registration services to its clients. 

Schedule a free initial consultation with one of our professional business registration experts, contact us:

• Contact Us Here
• Fill Out the Form Below
• Call us at +63 (02) 8540-9623
• Email us at info@tripleiconsulting.com