Steps Involved in Incorporating a Company in the Philippines

Incorporating a company in the Philippines is a structured process that requires compliance with several regulations and the submission of specific documents. The Securities and Exchange Commission (SEC) oversees company registrations, ensuring that businesses adhere to legal requirements before they can operate. Below are the essential steps involved in setting up a company in the Philippines.

1. Prepare Your Business Name

Before initiating the incorporation process, you need to select a business name. It is advisable to prepare 3-5 alternative names in case your first choice is already taken or reserved in the SEC’s database. This step is crucial, as the name you choose will represent your business identity.

2. Determine Your Permanent Office Address

You must have a permanent office address for your business. If you are in a hurry to get your business up and running or are seeking a cost-effective temporary location, consider using a virtual office space provider. This option allows you to start operations quickly while planning for a physical office later. Keep in mind that if you change your address after registration, you will need to amend your registration documents, which may incur additional fees.

3. Reservation of Business Name

Once you have decided on your business name, you must reserve it with the SEC. For sole proprietorships, the name should be reserved with the Department of Trade and Industry (DTI), while cooperatives must reserve their names with the Cooperative Development Authority (CDA).

4. Submission of Documents to the SEC

After reserving your business name, you will need to submit various documents to the SEC, including:

• Articles of Incorporation and By-Laws: These outline the company structure and internal regulations.
• Treasurer’s Affidavit: This document must be signed by the incorporators and notarized.

Once you have submitted all required documents, the SEC will issue a Certificate of Incorporation. This certificate legitimizes your company’s existence and allows you to engage in business legally.

5. Register with Local Government Units (LGUs)

After securing your Certificate of Incorporation, the next step is to register with the local government units where your business will operate. You will need to obtain the following:

• Barangay Clearance: From the Barangay Hall to ensure compliance with local regulations.
• Mayor’s Permit: From the Mayor’s Office, which is necessary for operating a business in that locality.
• Business Permit: From the Business Permit and Licensing Office (BPLO) of the Municipal or City Hall.

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

Next, you need to register your business with the Bureau of Internal Revenue (BIR) for taxation purposes. The requirements for acquiring a BIR Certificate of Registration include:

• 0605 Form: For the payment of the Annual Registration Fee.
• DST 2000 Form: For the payment of subscription of shares for domestic corporations.
• DST 2000 Form: For the payment of lease for all types of company formations, which requires a notarized copy of your lease contract.

Along with the BIR Certificate of Registration, you must also secure the following:

• Certificate of Registration of Books of Account
• Cash Register Machine (CRM), Point of Sale (POS) Machine, or Authority to Print Receipts/Invoicing (Manual Receipts)

7. Registration with Other Government Agencies

If you plan to hire employees, you must register with several additional agencies for employee benefits. These include:

• Social Security System (SSS): For social security benefits.
• Philippine Health Insurance Corporation (PhilHealth): For health insurance benefits.
• Home Development Mutual Fund (Pag-IBIG Fund): For housing benefits.

Conclusion

Incorporating a company in the Philippines involves navigating a series of regulatory steps and requirements. By following the outlined steps—from preparing a business name and securing an office address to registering with the SEC and other government agencies—you can establish your business legally and ensure compliance with local laws. Being thorough in this process will help set a solid foundation for your business’s future operations. Related Topics: Process to set up Company Limited by Guarantee in Singapore Steps to Register Sole Proprietorship Singapore