What Are the Steps for Incorporating a Company in the Philippines?
1. Register your Business with the SEC
The Philippine Securities and Exchange Commission (SEC) has quite a mature online system for reserving and registering your company name and details. Simply use ESPARC in the SEC to check if your desired company name is available, and then reserve/register that name.
During this process, you will also need to provide the following documents to SEC:
Your company’s Articles of Incorporation and By-laws
Your company’s Treasurer’s Affidavit
If your application is approved, SEC will issue a Certificate of Registration to legitimize your company’s existence and allow you to start doing business in the Philippines.
2. Obtain Clearance from the Barangay
The Barangay is the district of your chosen region in charge of administration for the local government. Any business formed therein will need to have the local Barangay’s approval.
Your application for Barangay Clearance will require:
Your Certificate of Registration from SEC
Two valid forms of identification
Proof of Address of your company’s local office (can be a Certificate of Land Title or Lease Contract)
3. Get Your Company’s Business Permit From the Local Mayor’s Office
For this step, you will have to visit your municipality’s local office and request a business permit. Along with your business permit application, you will also need to provide:
Your Certificate of Registration from SEC
Two valid forms of identification
Proof of Address of your company’s local office (can be a Certificate of Land Title or Lease Contract)
Your Barangay Clearance
Occupancy Permit
4. Register Your Company With the Bureau of Internal Revenue
As part of your tax obligations in the Philippines, you’ll need to register your new company with the Bureau of Internal Revenue (BIR). To receive your company’s Taxpayer Identification Number (TIN), you’ll need to visit your company’s local Regional District Office (RDO) and do the following:
Accomplish BIR Form 1903 Application for Registration (For Partnerships/Corporations)
In conjunction with your BIR Form 1903, submit a previously completed:
Certificate of Registration from SEC
Your company’s Barangay Clearance
Your company’s Business Permit from the Mayor’s Office
Proof of Address (Certificate of Land Title or Lease Contract)
Valid IDs, if required
If applicable, pay for your company’s Registration Form (BIR Form 0605) and Documentary Stamp Tax (BIR Form 2000)
Register your account books and up-to-date invoices
Finally, wait for your BIR Certificate of Registration (BIR Form 2303) to be issued
5. Register as an Employer
Finally, you need to register as an employer with the following government agencies:
Social Security System (SSS) (for social security)
Philippine Health Insurance Corporation (PhilHealth) (for health benefits)
Home Development Mutual Fund (HDMF or Pag-IBIG Fund) (for housing loan benefits)
Conclusion — Where to Next for Incorporating Your Business in the Philippines
The Philippine Government has made legitimate leaps and bounds in terms of simplifying the company incorporation process, with the express intention of making it easier for foreigners to do business in the Philippines.
However, while reasonably simple, it does take a large investment of your time that could be used better elsewhere, namely the running of your existing business.
If you’d like to make the incorporation process completely seamless, we advise you to use a registered and reputable incorporation service provider in the Philippines.
We’ve made an effort to give you as much free information as possible in this article, but if you have any questions about incorporating your company in the Philippines, ask us below.
We’ve been doing this for a long time all around Southeast Asia, so we’re sure to be able to save you time, money, and headaches.
If you’d like a personal consultation to advise on your move to the Philippines, please do contact us, it’s both our job and pleasure to help.