Why Do Companies Choose the Philippines for Business?
The Philippines is one of the top countries in the world chosen as a site for doing business by investors from different parts of the globe. The strategic location of the country right in the middle of Southeast Asia makes it a prime venue for trade and commerce between different ASEAN nations.
Talent is also a big factor. The country’s high literacy rate, as well as its priority in teaching English to all schools, makes the Philippines one of the widest English-speaking countries in Southeast Asia. This is advantageous for call centers and other business process outsourcing (BPO) companies where employees talk to foreign clients daily and need to be fluent in English.
After employing Filipinos, some multinational companies have yielded considerably larger savings on recruitment costs compared to finding talent in Western nations. Furthermore, government agencies in the Philippines offer tax incentives to businesses that meet certain requirements. This has propelled businesses to increase profit margins.
Why do Professionals Choose Us to Help Register Their Company in the Philippines?
With over fourteen (14) years of experience in business registration services, compliance consulting, HR, and financial counseling, Business Registration Philippines has supported both local and multinational accompanies in reaching their goals.
Our team of experts has been doing this for over 14 years in the fields of Philippine accounting and taxation, business incorporation, FDA product licensing and registration, and more.
After you reach out to us, we conduct a professional assessment of your situation and provide you with a strategy and plan tailored to fit your exact needs. We take charge of the tedious tasks so that you may focus on doing what you do best.
Our work doesn’t stop once you reach your goals. To keep your business running smoothly, we offer other services that require regular attention, such as bookkeeping, corporate compliance, license renewals, payroll outsourcing, and more. We will help you grow while you focus on your company’s core operations.
Procedures on How to Register a Company in the Philippines
Registering your own business in the Philippines may seem straightforward and simple when you read about the process online. In reality, the process can be quite time-consuming and confusing. We’ve put together a process of how registering a business typically works below, and we will assist you in accomplishing this every step of the way.
1. Decide and reserve a business name.
Prepare a name for your business and reserve it with either the Department of Trade and Industry (DTI) for single proprietorship businesses or with the Securities and Exchange Commission (SEC) for one person corporations or domestic corporations.
2. Search for an office address.
A permanent office address is also a requirement for the incorporation of a business. An office address is required for the formation of a company.
3. File documents.
Prepare your company’s necessary documents required by the SEC or DTI, such as the Articles of Incorporation and By-Laws signed by the incorporators for notarization.
4. Local government registration.
The next step of the business registration process is coordinating with the local government in your office location to acquire essential documents to operate. These include, but are not limited to, the Barangay Clearance from the Barangay Hall and a Business Permit from your local City Hall.
5. Prepare taxation requirements.
Abide by local taxation requirements by accomplishing forms from the Bureau of Internal Revenue (BIR). Secure a Certificate of Registration and Authority to Print Receipts (if needed) from the BIR.
6. Get a local corporate bank account.
Open a non-resident account with a local bank. The account will be used for depositing the paid-up capital of the enterprise. You will need to submit Articles of Incorporation and By-Laws, valid IDs of the treasurer, and a minimum deposit ranging from P50,000 to P100,000.
7. Register as an employer.
It is a mandatory requirement for each employer in the Philippines to register with government agencies that provide employee benefits – such as the Social Security System (SSS), the Philippine Health Insurance Corporation, and the Home Development Mutual Fund or Pag-IBIG Fund. If you have employees currently working or are in the process of being hired, we can help you register them with these agencies as well.
Don’t worry if you still need further assistance in getting the process started. Business Registration Philippines can help you with each step of the registration process. Contact us to know more.
Post Registration Services
After your business is fully incorporated, Business Registration Philippines can help you have more time for tasks that need your urgent attention by delegating the following services to us while you focus on operating your business:
9g Working Visas for Foreign Employees
- Our professional visa consultants can help you from the application to the acquisition and the renewal process of the 9G Working Visa.
Auditing and Tax Compliance
- We have Certified Public Accountants ready to help you with your audited financial statements, tax compliance reports, and more.
- Our geologists and environmental engineers can conduct an environmental impact assessment on your projects and conduct on-site inspection, on-site testing, and representation of ecological cases to the DENR.
- With access to essential resources and expertise on a wide range of topics, our HR consultants can guide you on company manuals, company policies, labor contracts, performance management, recruitment assistance, legal compliance with local labor laws, and others.
- We offer tailored payroll outsourcing to meet your needs. We’ll help you choose a favorable solution for your company and its employees, so they are paid accurately and on time.
Types of Business Structures
Choosing the right type of business structure is an important step of the registration process, and we’re here to guide you in selecting the best one for your line of business.
- A sole proprietorship is a business entity with only one owner. With a sole proprietorship business structure, the sole proprietor obtains all the assets and profits of the enterprise. The amount of corporate taxes owed to the BIR will depend on the profits earned by the business. Sole proprietorship companies must register with the Department of Trade and Industry (DTI).
- A one person corporation (OPC) features a sole shareholder who can be held liable only up to the extent of his share capital. The company’s assets are separate from the business owner’s assets, and as such, creditors can only go after the company’s assets. OPCs are under the Securities and Exchange Commission (SEC) jurisdiction. OPCs can be a hundred percent Filipino-owned or sixty percent Filipino-owned and forty percent Foreign-owned, or forty to a hundred percent Foreign-owned.
- A partnership is a contract between two or more individuals. It has a separate legal entity from that of its partners. Under this business entity, duties and profits are shared between the partners. A partnership must be registered with the SEC.
- A domestic corporation has a separate legal entity from that of its shareholders. It requires a minimum of two (2) to fifteen (15) incorporators who should be natural individuals of legal age and subscribers of at least one share of capital stock in the business. Similar to an OPC, a domestic corporation can be a hundred percent Filipino-owned or could be sixty percent Filipino-owned and forty percent Foreign-owned or forty to a hundred percent Foreign-owned.
- A representative office is a local office of a foreign-owned corporation with its parent company based abroad. All the expenses and liabilities made by the representative office in the Philippines shall be supported by its parent company abroad. As an office representing its parent company, a representative office is not allowed to earn revenue in the Philippines. Its functions are limited to quality control of its products, processing of orders, information dissemination, promotion of products and services of its head company, providing customer support to its parent company abroad, and other administrative activities.
- A branch office of a foreign-owned corporation with operations in the Philippines must secure a business license from the SEC. A branch office’s requirements include proof of its legal existence in the country where it originated from, proof of financial soundness, and authorization to establish a branch in the Philippines. A branch office also needs the appointment of a Resident Agent who will be the one to receive the summons and legal processes in the country.
- A regional operating headquarters (ROHQ) is established to support its parent company’s affiliates, branches, or subsidiaries in Asia-Pacific, the Philippines, and other foreign markets. Aside from its ongoing engagements with other companies, an ROHQ is not allowed to directly or indirectly solicit or advertise goods and services on behalf of its parent company or any of its affiliates, branches, or subsidiaries.
- A Regional Headquarters (RH) in the Philippines serves as a central corporate entity for managing and coordinating a company’s operations in a specific region. It plays a vital role in driving efficiency, maximizing market penetration, and promoting strategic decision-making within the designated geographic area. RHs primarily focus on strategic planning, decision-making, and support services for regional subsidiaries or affiliates, rather than engaging in direct income-generating operations.
If you still have trouble identifying the proper business structure for your company, don’t hesitate to get in touch with us to schedule an initial consultation. Business Registration Philippines is ready to provide professional consultation on selecting the business structure that will be most advantageous for you and provide you with tax incentives you may be eligible for.
Learn more about business incorporation and business registration in the Philippines. Contact Business Registration Philippines and ease the burdens of setting up a corporation in the country.
Business Registration Philippines is a website dedicated to helping investors, business owners, and other stakeholders establish and incorporate their enterprises. It is a microsite of Triple i Consulting Inc.
Triple i Consulting is the first ISO 9001:2008 company in the Philippines to offer business registration to its clients. Triple i and Business Registration Philippines have over 14 years of knowledge and skills in Philippine business incorporation, accounting, taxation, FDA licensing and product registration, and more.
Reach out to us through one of the channels below to schedule an initial 30-minute consultation to discuss your needs and how we can help you achieve them.