Company Registration: Easy Steps to Start Your Corporation in the Philippines

For your corporation to succeed, you should know how to start it right— which means it should be legal and registered. Are you planning to form a company in the Philippines? This article will provide you the easy steps for your business registration.

 

What does it mean to start a company in the Philippines?

 

A company, or more specifically, a corporation, is a legal entity in the Philippines that is separate from its owners or incorporators. As for the legal rights and obligations, it is similar to an individual.

Companies can involve themselves in contracts or loans, hire its employees, pay taxes, and more.

A corporation is typically comprised of at least five (5) individuals known as incorporators.

As for the ownership, it is divided into shares of stock. The company’s stock is issued to individuals or other entities, who, in turn, become owners or stockholders of the corporation.

 

What are the advantages of company registration in the Philippines?

  • A Profitable Market
  • Low-Cost Yet Skilled Labor
  • Excellent Infrastructure
  • Government Incentives

 

Where to register a company in the Philippines? 

Below are the essential government agencies for your company registration in the Philippines:

– Barangay

– Mayor’s Office

For your employees, you’ll need to register to the following:

 

What are the steps and requirements of your company registration? 

Here are the basic requirements and steps in registering a corporation:

  1. Register your business name in Securities and Exchange Commission (SEC), as follows:
  • Check if your ideal corporation name is still available by means of SEC online site or at SEC Office in Mandaluyong
  • If still available, register/save your corporation name by means of SEC online site or at SEC Name Verification Unit – SEC Office in Mandaluyong

Prepare, sign, and notarize the following:

  • Articles of Incorporation;
  • By-Laws
  • Treasurer’s Affidavit; and
  • Joint oath of two incorporators undertaking to change corporate name immediately upon receipt of notice or order from the Securities and Exchange Commission that another company, organization, or individual has obtained a prior right to the use of that name or that name has been declared misleading, deceptive, confusingly similar to a registered name, or contrary to public morals, good customs or public policy. (Not necessary if the Articles of Incorporation contains a provision).
  • Submit legally approved documents to SEC Office in Mandaluyong City
  • Claim your SEC Certificate of Registration

 

Processing Time: Minimum of 1 week upon completion of documents

 

  1. Obtain Barangay Clearance

Once your company name is registered with SEC, the next thing to do is to obtain a clearance in the barangay.

Here are the easy steps to do so:

  • Once in the barangay, secure and fill up the application form
  • Submit your completed application form together with the following:
  • Certificate of Business Registration from SEC
  • Two (2) valid IDs
  • Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

 

Processing Time: 1 day upon completion of documents.

 

  1. Obtain Business Permit from the Mayor’s Office

Once you have obtained a Barangay Clearance Certificate, the next document to secure is a Business Permit in the municipality where your corporation is located.

Here are the easy steps and basic requirements:

  • Go to the municipal office to secure and fill-up application form

Submit your completed application form together with the following:

  • Certificate of Business Registration from SEC
  • Barangay Clearance Certificate
  • Two (2) valid IDs
  • Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)

 

Processing Time: Minimum of 1 week upon completion of documents. However, it might take longer as well (depending on the industry’s permit requirements).

 

  1. Register with the Bureau of Internal Revenue (BIR)

After you obtain a Mayor’s Business Permit, you can proceed to your company registration with the BIR Philippines.

Here are the necessary steps and requirements:

  • Go to the Regional District Office (RDO) where your business is located

Fill-up registration form as follows:

  • BIR Form 1903 – Application for Registration (For Partnership/Corporation)
  • Submit completed registration form together with the following:
  • Certificate of Registration form SEC
  • Barangay Clearance
  • Business Permit from the Mayor’s Office
  • Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned)
  • Valid IDs, if applicable.
  • Pay the Registration Form (BIR Form 0605) and Documentary Stamp Tax (BIR Form 2000), if applicable.
  • Register your book of accounts and receipts/invoices.
  • Claim your Certificate of Registration (BIR Form 2303)

 

We hope this article has given you an idea for your company registration. If you need further details, we offer complete legal services in processing your business registration. Contact us today!

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