Starting a venture in the Philippines is a strategic move for both local and global investors. Nevertheless, understanding the steps for business registration in the Philippines is crucial to ensure compliance. Our overview details the necessary steps and investment rules for incorporating your enterprise.
An Overview of the Philippine Business Registration Process
The process of incorporating a business usually begins with choosing the right structure. For solo entrepreneurs, a sole proprietorship registered with the DTI is the most common choice. On the other hand, most groups prefer incorporation through the Securities and Exchange Commission (SEC).
Step 1: Name Reservation: Initially, you must reserve your proposed name via the SEC eSPARC portal. 2. Drafting Legal Papers: Draft your AOI and Bylaws. Thanks to recent laws, you can now establish a One-Person Corporation (OPC) if you are a lone investor. 3. Securing Local Licenses: After receiving your SEC certificate, you need to obtain a clearance from the local barangay and a Mayor’s Business Permit from the relevant city hall. 4. BIR Compliance: To conclude the process, register with the BIR to get your TIN and permission to print official receipts.
Business Registration Philippines for Foreigners
For most global entrepreneurs, foreign business registration philippines for foreigners business setup in the Philippines involves extra considerations. While the government has opened up many sectors, some limitations remain under the Negative List.
Foreigners can own full ownership of export-based enterprises. However, businesses serving the local market often require a substantial capital injection. Additionally, non-Filipino owners business registration philippines for foreigners are required to obtain the proper visas, such as the Alien Employment Permit (AEP).
A Look at Minimum Capitalization for Corporation Philippines
One of the question for founders is the minimum business registration philippines for foreigners capitalization for corporation philippines. In most cases, the Revised Corporation Code removed the mandatory subscribed capital rule for domestic corporations except when required philippine business registration process by specific laws.
However, the rules change vastly for foreign-controlled firms:
Domestic Market Enterprises: Usually require a minimum capitalization of 200,000 USD.
business registration philippines for foreigners Tech or Labor Intensive: This amount can be lowered to 100,000 USD if the company utilizes modern tech or employs at least 50 Filipino workers.
Export Enterprises: These entities can frequently be started with a minimum of 5,000 Pesos in paid-up capital.
Conclusion
Navigating the philippine business registration process demands careful planning and due diligence. Through mastering the requirements for business registration philippines for foreigners and meeting the correct minimum capitalization for corporation philippines, you can successfully build a compliant business in this dynamic economy.