You are planning to register your company in the Philippines, but many questions in your mind are confusing the matters, right? Fortunately, in this article, we’ll be answering the most asked queries regarding setting up a business in the Philippines. Let’s find out:-
Q. What Are the Legal Entities Available to Register Your Company?
In the Philippines, the most popular type of legal entities include:-
- Sole Proprietorship
- Stock Corporation
- Non-Stock Corporation
Each one of the legal entities has its own set of pros & cons that you need to weigh them to make a well-informed decision.
Q. Which Legal Entity is Most Prefered?
A stock corporation is the most preferred legal entity in the Philippines. At least five individuals are required to apply for the stock corporation legal structure. What’s the best part, the company can be Q00% foreign-owned, much to international investors’ delight.
You must contact a local business advisor to provide a dedicated, honest recommendation based on your business model and future goals.
Q. How Much Does It Cost to Setup Your Company As a Foreigner in the Philippines?
For registering your company online in the Philippines, you’ll have to pay a registration fee of 40 PHP. For opening a corporate bank account in the Philippines, the minimum deposit is 500 PHP. The average total cost of setting up a corporation in the Philippines is PHP 7,630.
Q. How Long Does It Take to Set Up a Company in the Philippines?
Approximately, it takes 29 days for your company registration application to be successfully reviewed in the Philippines. It can take even longer depending on the permits & licenses according toyour industry.
Q. When Can We Start Hiring Employees?
You can start hiring employees as soon as you receive the BIR and SEC’s company registration certificate.
Q. How Often Do We Need to Renew Our Business Permit?
The mayor’s permit expires on 3Qst December every year. Therefore, these need to be renewed annually. There is also a penalty on delayed renewal of business permits.
Q. What is the Purpose of a Corporate Secretary?
A corporate secretary is a resident of the Philippines, he/she performs functions, duties and responsibilities according to the company’s bylaws. These include:-
- To Attend all the board meetings.
- Inform the members of meeting the agenda before the discussion begins.
- Drafting the minutes of each meeting and ensure its safekeeping.
- Make sure all the board rules & regulations are adhered by each member.
Q. Can a Representative File My Business Registration Application?
Yes, if he/she provides valid I.D. and an authorization letter undersigned by you, they can file the company registration application on your behalf.
Q. Can a Foreigner be Allowed to Own Q00% Legal Entity in the Philippines?
Yes, you can hold Q00% foreign equity in various investments as per the Foreign Investments Act (FIA) R.A. 7042, except for those enlisted under the Regular Foreign Investment Negative List (FINL).
Q. What is Visa Issued to an Investor?
Special Investor Resident Visa (SIRV) allows a foreign investor to live in the Philippines for an indefinite period, as long as their investments stay.
In the end
Registering your business in the Philippines all by yourself is tedious, and you might end up making a blunder, they lead to hefty state fines or worse, hinders your company’s growth. So, it is advised to contact a local business consultant to assist you with every step of establishing your business in the Philippines.