Philippines Domestic Corporation
Remote Formation Service
You are served in Hong Kong.
We can ensure a remote company formation of your Domestic Corporation in the Philippines for offshore as well as domestic business usage.
Our corporation formation package come with the Philippines’s local company secretary services and virtual office address for 1-year, plus the application forms filling and documents handling. With our assistance, non-resident of the Philippines can complete the incorporation without travel to the Philippines.
One-Person Corporation (“OPC”) is an alternative corporate structure for solely one individual who act as both the shareholder and director.
The Philippines has become one of the world’s fastest growing economies. This Southeast Asian nation has maintained over 6% of annual GDP growth for 6 consecutive years (in the Year 2018).
Well-educated Labour Force
This achievement is also attributable to the influx of foreign businesses such as the growth of the outsourcing and offshoring companies. Foreign businesses are attracted by the low-cost, English-speaking and well-educated workforce. Being a former territory of the U.S., English is the second language spoken by the Filipinos. Moreover, one-third of the population has completed college education. However, the national median wage is merely US$ 7,000 per year.
Eased Corporation Laws
The Philippine government has amended regulations to facilitate company formation and business registration processes. One can now set up a domestic wholly-foreign owned corporation regulated by its Foreign Investment Act (R.A. 7042).
A corporation is a separate legal entity from its owners because it is a legal person. This means a corporation has the legal statute as an individual by the laws. For example, a corporation has a set of legal rights and obligations to perform activities on its name such as engaging into contracts, employing workers, obtaining loans from financial institutions, paying taxes, and owning assets.
The owners of a corporation are the shareholders or stockholders where each hold a portion of ownership to the corporation. The share or the stock of the corporation can be transferred to other individuals or corporations.
Comparing with sole-proprietorship and partnership, corporation may become less favourable.
Tax Identification Number (“TIN”)
Being an foreign incorporators (you are not the Philippines residents or citizens), you need to apply for your Tax Identification Number (“TIN”) of the Philippines prior to the corporation formation procedures.
Document Authentication Service
With the help of AsiaBC in the Philippines, the complete company registration and the TIN application can be handled remotely – no travel to the Philippines.
The registration of a general corporation in the Philippines involves the following government agencies:
The procedure of registration can be divided into five major steps.
The SEC offers an online service portal for checking the availability of the proposed name and also to reserve the desired name once the name is available.
Once the SEC approves the name reservation, it is the stage of capital injection. The incorporators must open and maintain a minimal deposit in a local Philippines bank under the Treasurer-in-trust Fund (“TITF”) account of the corporation. The deposit amount must be equivalent to at least 25% of the paid-up share capital of the corporation.
TITF accounts are deposit-only in nature, withdrawal by the incorporators are restricted. The bank will issue a certificate of deposit and inward remittance as a proof of capitalization of the corporation.
After the formation process, the TITF account can be converted to the corporate bank account.
The SEC requires submission of the required documents to complete the registration:
Upon approval, SEC will issue the Certificate of Incorporation (“COI”), then the corporation can register its stock transfer book and issue its corporate stock.
The hierarchy of the administration of the Philippine is divided into four levels: Region, Province, City/Municipality, and Barangy. i.e. Barangay is the smallest subdivision of the City/Municipality; while Region is the largest division.
To obtain the clearance form a Barangay where your business is located, the Barangay requires your COI and document proof of your business address. A virtual office can act as the registered business address of your corporation. The Barangay may require other documents such as the floor plan, location clearance, building permit and certificates.
Business Permit and Licensing Office (“BPLO”)
The business permit is the license to operate the business of the corporation. Your corporation needs the business permit from the Municipality through its BPLO. BPLO requires submission of the Barangay Clearance, the COI as well as the business-specific documents, so it is necessary to acquire those special documents which are required specifically for the type of business before the application of the Business Permit.
Immediately after the issuance of the COI, you have to apply for the Certificate of Registration from the BIR for your corporation. This application requires payment of various tax return forms as well as the registration of your corporation’s manual books of account, including a draft copy of the corporation’s Official Receipt.
Being an employer in the Philippines, the corporation needs to complete the registrations with the following statutory government agencies:
|Services||PHP (₱)||USD ($)|
|I. Formation of Corporation
||230,000 up||4,600 up|
|II. Virtual Office (for registration purposes only – 1 year)||60,000||1,200|
|III. Corporate Secretarial Package (1 year)
Document preparation and filing regarding to: