Comprehensive Guide to Company Registration in the Philippines

Starting a business in the Philippines is a multi-layered and time-consuming procedure. Here are the key steps of the registration process:

• Name registration: You must choose a business name, check for its availability, and get it registered. After the name approval and payment of the required fees, you’ll get a certificate valid for five years.
• Notarization of documents: The company’s official documents must be notarized, including the articles of incorporation and the treasurer’s affidavit.
• Application for company incorporation: You must submit the necessary forms and documents to the Securities and Exchange Commission (SEC). The pre-approval of the submitted application is given after reviewing the documents and obtaining the proof of payment. The incorporation certificate and other supporting documents are prepared during the waiting period. SEC provides the Taxpayer Identification Number.
• Fees payment: The SEC issues the payment fee proof after the company is incorporated. You should pay the bank’s name registration costs and submit the payment proof online.
• Business permit and licenses: You should obtain the permits and licenses from the local municipality based on your company’s nature of business.
• Barangay clearance: The local Barangay provides clearance after you’ve submitted the application form, SEC certificate of incorporation, site map, office lease documents, and proof of payment for annual community tax.
• Registration of social security system: Registration with the social security system is essential for receiving employee and employer numbers. To register your company with the social security system, you must submit the registration form, list of employees, notarized article of incorporation, bylaws, and SEC registration.
• Registration with the Philippines health insurance: You should submit the employer and employee member forms to register your company under the Philippines health insurance. Also, you must submit a certificate of incorporation, a copy of the articles of incorporation and bylaws, and a copy of the business permit. After reviewing these documents, the insurance company will provide proof of membership to ensure employees’ health coverage.
• Submission of receipts and invoices to the Bureau of Internal Revenue: You should submit the printed receipts, invoices, books of accounts, registration certificate for value-added tax, registration proof with SEC, and a notarized sworn statement to the Bureau of Internal Revenue as the final step of the registration process.

The average cost of incorporating a business in the Philippines is USD 17,920. This cost includes –

• The cost of incorporation and registration 
• Fee for the company secretary
• Fee for opening a corporate bank account

Are Foreigners in the Philippines on Certain Passes Allowed to Start a Business?

Yes, foreigners possessing the 9G visa can start a business in the Philippines. Furthermore, foreign-owned enterprises can invest a small amount for conducting operations in the Philippines. If you’re not willing to invest in wholly foreign-owned enterprises, partnering with Filipino residents is another affordable option to start a business in the Philippines – you can get local consultation without investing a lot of money.

The government allows a maximum of 40% equity to foreigners in a Filipino business. It implies forming a partnership with Filipino residents they can trust to control the remaining 60% of the company’s stock.

Government Assistance for Foreign-owned Business in the Philippines

The Philippine government encourages foreign investors to invest in businesses, create jobs, and increase resource productivity, volume, and value of exports.

To align with its vision, the government offers ex-pats the following grants for setting up a company in the Philippines:

• For companies registered as foreign business entities, incentives in tax credits, deductible from their taxable income for paying employees, and covering infrastructural expenses.
• Non-fiscal incentives for employing foreigners and importing advanced equipment.
• Companies registered within ecozones are exempted from various taxes and given other benefits like duty exemption on imported raw materials, equipment, etc.

How Can Multiplier Help?

Starting a business in the Philippines requires much consideration and planning. However, with the global EOR service providers like Multiplier, you can assemble a global team without setting up a subsidiary in the Philippines.

Multiplier will take care of all your HR requirements, from onboarding employees to managing payroll. With our expert help, you can easily navigate through the intricacies of the Philippine market and labor laws. Further, as an EOR firm, Multiplier can handle all employment-related services for international companies.