Open a Limited Liability Company in the Philippines

Updated on Friday 13th October 2017

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Foreign citizens who want to open a company in the Philippines have several options in terms of the structures they can choose, according to the Commercial Code here. While most of them are used to the limited liability company, it should be noted that this business form does not exist here. However, the Philippines corporation is the closest structure to the limited liability company in other countries.
Our Philippines company registration specialists can offer more information on the types of companies available for foreign investors interested in doing business in this country.
 

Characteristics of the corporation in the Philippines

Just like the limited liability company, the Philippines corporation offers limited responsibility to the founders of the business. The concept of limited liability which amount to the amount a shareholder has contributed with to the capital of company. Also, the corporation makes a clear distinction between the assets of the company and those of the shareholders.
The requirements to open a limited liability corporation in the Philippines are:
-          a minimum number of 5 shareholders and a maximum number of 15;
-          a minimum share capital of 5,000 PHP is required;
-          the company must register its name with the Securities and Exchange Commission (SEC).
It should be noted that a Philippines corporation can be fully foreign-owned or partially foreign-owned. In the latter case, the company is deemed a Filipino company. If a limited liability company is 40% Filipino-owned and 60% foreign-owned, it will be considered a foreign-owned domestic corporation.

Our company formation consultants in Philippines can explain the features of the limited liability company.

Registration steps of a limited liability company in the Philippines
 

Those interested in starting a business in Philippines under the form of a limited liability company must:
-          reserve the company name with SEC;
-          deposit the share capital;
-          have the Articles of Association drafted and notarized;
-          register the company with the SEC;
-          register the company with the tax authorities, social security authorities and with the Home Development Mutual Fund;
-          apply for the Barangay authorization;
-          obtain the special licenses related to starting its activities.

For assistance in drafting the incorporation documents of a Philippines limited liability company you can rely on our local company formation agents. Please contact us for assistance with the Philippines company formation process.
 

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