The Philippines is amongst the fastest growing economies in the Asian continent. The country is blessed with an abundance of natural resources and highly-educated people to invite investors, entrepreneurs, and big businesses from across the globe.
With the Philippines notching up the rank by improving its ease of doing business and making business-friendly government policies, the country is progressing to become a powerhouse in Asia.
Although there are no out-of-the-blue offers or incentives, the country presents you with fertile business infrastructure and a friendly economic environment.
So, if you think setting up a company in the Philippines would be a great opportunity, we have a complete step-step-step guide to help:
Step 1: Pick a Business Structure
The first step of starting a business is deciding on the corporate structure.
According to the resources and size of your business, make a decision whether you want to set up the company as a sole proprietor, in a partnership or a private limited company.
Make sure you choose based on your long-term vision for the company and not any personal bias or short team goals.
Step 2: Register Business Name
Once you’ve picked a business name which is
- easy to pronounce;
- effectively communicates the company message to its prospective audience; and
- is easy to remember;
The next step is to register the business name.
The company registration in the Philippines vary based on the type of business:
- Sole proprietorship – Contact The Department of Trade and Industry (DTI)
- Cooperative – Contact Cooperative Development Authority
- Corporation/Partnership – Contact Securities and Exchange Commission
The fee for registering your company in the Philippines is anything between 40 to 120 PHP
Step 3: Pay Off the Minimum Deposit
People who are setting up a company in the Philippines need to know that they have to deposit a minimum capital in their business bank account.
Minimum PHP 5,000, according to the Philippines’ Corporation Code. The bank can ask for additional materials such as identification documents and articles of incorporation.
Step 4: Register your company with the Securities and Exchange Commission
This is one of the most crucial steps in the entire process of company registration.
The Securities and Exchange Commission is a government-authorized agency that oversees every business running in the Philippines territory.
Applicants have to provide the Securities and Exchange Commission with the following documents:-
- Article of incorporation
- Treasurer’s affidavit
- Approved company name
- Details of the company’s particulars, such as the stakeholders, directors, and officers
- Statement of liabilities & assets
You’ve to notarize the documents before submitting them to the Securities and Exchange Commission.
Step 5: Obtain the TIN Number
Next, you must complete the following to get your TIN:
- Name verification slip of the company
- Treasurer’s affidavit
- Written undertaking to compiling with Securities and Exchange Commission guidelines
- Statement of liabilities & assets
- Written undertaking to change the corporate name
- Articles of incorporation
- Registration datasheet
Once you’ve done with the above steps, the Securities and Exchange Commission will process your TIN request, and 48 hours is the average approval time.
Step 6: Pay The Annual Community Tax
This tax has to be paid to the City Treasurer’s Office (CTO). The amount depends upon the capacity of your business; it will be no more than 500 PHP.
Closing Thoughts
So, if you’re considering starting your business in the Philippines, just go ahead with it.
The business-friendly government of the Philippines encourages investors and ambitious entrepreneurs from around their globe to start a business and reap all the benefits.
If you’ve any doubts or covers, you can always talk to business consultants to assist you with the incorporation process, legal hassles, accounting & financial management.
