Company Formation Guide in the Philippines

Updated on Tuesday 03rd October 2017

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In 2017, the Philippines was the 10th fastest growing economy in the world, which is a great result for such a small country in Southeast Asia. Moreover, the Philippines is also the 3rd fastest growing economy in the ASEAN community and one of the richest countries in terms of Gross Domestic Product (GDP) per capita in the region. These are just a few attributes of the country which attract foreign investors interested in starting a business in the Philippines.

Our local company formation specialists can offer more information on the reasons for opening a company in this country.

 

Types of companies available for registration in the Philippines

Both foreign and local investors are allowed to open companies in the Philippines, however there are certain requirements a foreign citizen must comply with in order to create a business here. When it comes to the types of structures available for incorporation in the Philippines, the local legislation provides for the following:
  •           the sole trader or proprietorship, which is the simplest business form available in the Philippines;
  •           the partnership;
  •           the corporation.
The Philippine corporation can be categorized into a stock or non-stock corporation.
Foreign companies also have several options for creating a presence in the Philippines. These are the branch office, the representative office, and the regional operating headquarters.

Our company registration agents in the Philippines can offer more information on the types of companies to be set up here.

 

Requirements for starting a business in the Philippines

Foreign enterprises who want to set up companies in the Philippines must take into account that they will need a minimum share capital of 5,000 PS (Philippine pesos, which is the national currency in this country).  Also, the minimum number of shareholders required for Philippines company formation is 5. Once the structure of the company is established, the future owners must create the Articles of Association of the company.

 

Steps to register a Philippine company

The following steps must be completed upon the Philippines company formation process:
  •           reserving a company with the Securities and Exchange Commission (SEC);
  •           depositing the share capital;
  •           obtaining the Barangay Clearance;
  •           applying for the business license with the Mayor’s Office in the city where the company is located;
  •           registering for taxation purpose;
  •           registering with the social security authorities.
If you want to open a company and need assistance, please feel free to contact our company formation consultants in the Philippines.
 

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