Incorporating a business in the Philippines requires transaction with at least six (6) government agencies. There will be more government agencies to deal with if the business activity is regulated like in the case of banks, non-banking financial institutions or insurance companies.
Securities and Exchange Commission
The Securities and Exchange Commission (“SEC”) is the corporate regulatory body in the Philippines. Corporations and partnerships are registered with SEC. Domestic corporations like subsidiary are issued a certificate of incorporation while foreign corporations (branch office, regional operating headquarters and regional headquarters) are issued a license to transact business in the Philippines.
Local Government Unit
Once the company is incorporated or issued its license to do business, it is required to secure a mayor’s permit from the local government unit that has jurisdiction over its principal place of business. At this stage, securing a barangay clearance, sanitary permit, locational clearance, zoning certification, and community tax certificate are some of the supporting documents that need to be submitted before a mayor’s permit is issued by the Business Permits and Licensing Office of the city or municipality concerned where the company has its place of business. A company that has more than one place of business is required to secure its mayor’s permit in every locality where it operates.
Bureau of Internal Revenue
After securing the mayor’s permit, the company then goes to the tax authority of the Philippines, Bureau of Internal Revenue, for registration. In particular, registration has to be done in the Revenue District Office that has jurisdiction over the place of business of the company. A company is likewise required to register in every Revenue District Office where it operates.
The company will be issued its certificate of registration and its authority to print its receipts or sale invoice booklets. Further, the company is required to register its manual books of accounts or computerized accounting system or apply for authority to use loose leaf.
Social Security System (SSS), Philhealth, and HDMF
Registration with these three (3) social agencies is required as soon as the company hires its first employee and is mandatory.
If you wish to know more information about company registration or any related concerns, please send your email to [email protected].