Scribd Logo
Upload

Welcome to Scribd!

  • 35 views

    Important Information - Foreign Business in PH

    Uploaded by

    Graze Isidro
    To register a business or foreign company in the Philippines, there are several options. A domestic corporation requires registering with the SEC, maintaining directors and officers, and pays 30% corporate tax but allows full foreign ownership. A branch office exporting goods or services can also be fully foreign-owned if it provides $200,000 operating capital. A representative office only represents a parent company but has lower operating capital requirements. General requirements for all businesses include registering with SEC, BIR, SSS, and obtaining permits from the local government.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Important Information - Foreign Business in PH

    Uploaded by

    Graze Isidro
    35 views4 pages
    To register a business or foreign company in the Philippines, there are several options. A domestic corporation requires registering with the SEC, maintaining directors and officers, and pays 30% corporate tax but allows full foreign ownership. A branch office exporting goods or services can also be fully foreign-owned if it provides $200,000 operating capital. A representative office only represents a parent company but has lower operating capital requirements. General requirements for all businesses include registering with SEC, BIR, SSS, and obtaining permits from the local government.

    Original Description:

    Info on Opening foreign business in PH

    Original Title

    Important Information_Foreign Business in PH

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    To register a business or foreign company in the Philippines, there are several options. A domestic corporation requires registering with the SEC, maintaining directors and officers, and pays 30% corporate tax but allows full foreign ownership. A branch office exporting goods or services can also be fully foreign-owned if it provides $200,000 operating capital. A representative office only represents a parent company but has lower operating capital requirements. General requirements for all businesses include registering with SEC, BIR, SSS, and obtaining permits from the local government.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    35 views4 pages

    Important Information - Foreign Business in PH

    Uploaded by

    Graze Isidro
    To register a business or foreign company in the Philippines, there are several options. A domestic corporation requires registering with the SEC, maintaining directors and officers, and pays 30% corporate tax but allows full foreign ownership. A branch office exporting goods or services can also be fully foreign-owned if it provides $200,000 operating capital. A representative office only represents a parent company but has lower operating capital requirements. General requirements for all businesses include registering with SEC, BIR, SSS, and obtaining permits from the local government.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Procedures Needed to Open a Business in the Philippines

    Here are the main steps you need comply with when starting a business in the Philippines.
    Business Registration
    • Register your business name.
    • For sole proprietors, you need to register through the Department of Trade and Industry
    (DTI). Interested parties can also do their DTI business registration online.
    • For corporations and partnerships, you need to register with the Securities and Exchange
    Commission (SEC) i-Register Facility.
    • Obtain several business permits from local government units where your new business will be
    based.
    • For sole proprietors, you need to get a DTI Business Name Certificate. For corporations and
    partnerships, you need to secure a SEC Certificate of Incorporation/Partnership.
    • For businesses who rent commercial space, you need to secure a Contract of Lease. For
    businesses who operate on private lands, you need to secure a Land Title. For businesses
    which function in a subdivision, condominium complex, or village, you need to secure a
    Homeowner’s Association Certificate.
    • Get a mayor’s permit.
    • The requirements for the mayor’s permit vary per municipality, but mainly, the list includes
    a contract of lease, barangay clearance, occupancy permit, sanitary permit, fire permit, and
    a community tax certificate.
    • Secure a Certificate of Registration (COR) from the Bureau of Internal Revenue (BIR).
    • Now that you’ve registered your business, you need to handle the requirements of your
    employees. You need to ensure that they are registered with the Social Security System (SSS),
    PhilHealth, Home Development Mutual Fund (HMDF)/PAG-IBIG, and BIR.
    IP Registration
    • Applicants can process this online. Upon submission of requirements and payment of fees, the
    applicant will receive an email from the IPOPHL with the application number and filing date.
    • After a search process, which also ensures compliance to regulations, a certificate of
    registration will be issued with a 10-year validity. The certificate will be printed in the IP
    Philippines Gazette and be included in the official records.

    Expenses:
    Each city has its own requirements regarding the filing fee that goes with your business license.
    It usually ranges from $50 - $400 or more, depending on what type of business you're operating.
    There may be an additional processing fee of $25 or so as well.
    -----------------------------------------------------------------------------------------------------------------------------

    Register Call or Contact Center in the Philippines


    Outsourcing to the Philippines from North America, Asia, and Northern Europe is becoming more
    and more common. The Philippine government encourages export-related foreign investment in
    the Philippines through various fiscal and non-fiscal incentives. There are various options to look
    into when registering a call center or contact center outsourcing company. Some of these
    incorporation options with the Philippines Securities and Exchange Commission (SEC) may also
    include incentives from the Philippine Economic Zone Authority (PEZA) or the Board of
    Investments (BOI). There are also additional special requirements for call center outsourcing-
    related business in the Philippines.
    Despite the additional requirements for call centers in the Philippines these business can be fully
    foreign-owned with 100% foreign ownership.
    K&C assists in the decision in choosing the business enterprise and corporate structure for your
    call center, contact center company, or customer support operation in the Philippines. K&C also
    presents certain Philippine tax incentives your company may avail of and assists in registration
    with the appropriate government agencies, whether it be PEZA or BOI. This is typical of many call
    center and contact outsourcing businesses in the Philippines.
    Types of Call Center Outsourcing being Performed in the Philippines
    • Contact Centers
    • Customer Support
    • Inbound
    • Outbound
    • Telesales
    • Telemarketing
    Types of Call Center Companies to Register in the Philippines
    • Branch Office
    • Regional Operating Headquarters
    • 60/40 Domestic Corporation
    • Fully Foreign-Owned Domestic Corporation
    Additional Requirements to Register a Call Center Company
    Apart from the general SEC requirements to register or incorporate a company in the Philippines,
    the SEC requires companies engaging in Call Center operations to submit a “Modus Operandi” or
    Call Center Mode of Operation. There is no standard SEC form for this. However, we recommend
    that the Mode of Operation contains the following:
    • Brief Introduction of the Company and base of operation in the Philippines
    • Service Description
    • IT Services Flow Chart
    • Equipment to be used directly in the operations
    • IT Service schedule
    • Area Requirement
    • Utilities Requirement
    • Countries of export markets and list of prospective clients
    The Call Center Mode Operations document must be attached together with the incorporation
    documents when submitted to the SEC.

    -------------------------------------------------------------------------------------------------------------------------------

    How to register a foreign company in the Philippines?

    Deciding on whether to establish a company in a foreign country is not an easy decision. Among
    the key factors to be considered are the risks, costs and requirements involved. In the Philippines
    foreign companies looking to register a business are faced with similar questions.
    Here are some of the options foreign companies may consider when seeking to register a
    business in the Philippines:
    1. Domestic Corporation
    Domestic Corporation is the country’s version of a subsidiary and it can be either Filipino or
    foreign-owned. Depending on the target market and ownership structure, the capitalization may
    vary starting from a minimum of Php 100,000.00 to a maximum of USD 200,000.00. A domestic
    corporation is authorized to earn income and is currently subject to 30% corporate income tax
    on the net income. It may seem complex to establish because it has to maintain a minimum of 5
    to 15 directors and a few mandatory officers like Corporate Secretary and Corporate Treasurer
    but once you have these in place, you’ll have a very good jumping start.
    2. Branch Office (Export Enterprise-Goods or Services)
    An investor who wants to branch out his foreign operations in the Philippines may opt to register
    for a Branch Office and have it 100% foreign owned as long as it can provide the required
    operating capital of USD 200,000.00. This can be lowered to USD 100,000.00 by meeting one of
    SEC’s conditions when it comes to activities and target market. Unlike a Domestic Corporation, a
    branch office does not need to main a board of directors but instead, assign a resident agent who
    should be a Filipino or a Philippine resident. This resident agent will act as the branch office’s
    special point of contact say, for summons from government offices or as signatory for lease
    agreement. As with a domestic corporation, it is authorized to earn income and is currently
    subject to 30% corporate income tax. If your future company in the Philippines is a domestic
    corporation (subsidiary) or branch office exporting goods or services or generating revenue from
    abroad amounting to more than 60% of its gross sales, it can be fully foreign-owned, as it is
    considered an Export Enterprise under the Foreign Investments Act. Both branch and domestic
    corporation options can be registered with as little as P5,000 paid-up capital. However, most
    banks require P25,000 – P50,000 to open a corporate bank account. Most all foreign-owned “cost
    centers” such as call centers, contact centers, IT-BPOs, web development, and web design are
    eligible for classification as Export Enterprises and full foreign ownership. Some of these are even
    registered with PEZA to avail of tax and other incentives.

    3. Representative Office
    From the word ‘representative’ itself, this type of structure is being established to merely
    ‘represent’ a parent company from abroad. A representative usually hires local employees to
    assist the parent company’s clients in the Philippines, to disseminate information and to establish
    a local presence for the parent company. The parent company should prepare USD 30,000.00
    operating capital for the representative office to be registered. Like a branch office, a rep office
    only needs to maintain a resident agent who must be a Filipino or a Philippine resident to transact
    on behalf of the company. While it is not authorized to earn any income and is therefore not
    subject to any income tax, a representative office will still be required to submit mandatory
    periodic reports to the Bureau of Internal Revenue (BIR).

    For newly set-up companies:

    • Securities and Exchange Commission (SEC) Registration


    • Bureau of Internal Revenue (BIR) Registration (Non-Vat)
    • SSS, Philhealth, and Pag-ibig (HDMF) Registration
    • Business/Mayor’s Permit
    • Barangay Clearance
    • Building Permit
    • Occupancy Permit (Building and Unit)

    Requirements Needed for Business/Mayor’s Permit:

    • Application Form
    • Certificate of Registration from Securities and Exchange Commission (SEC) for
    Corporations/Partnerships; Department of Trade and Industry (DTI) for Sole
    Proprietorships; or Cooperative Development Authority (CDA) for Cooperatives
    • Barangay Business Clearance*
    • Community Tax Certificate (CTC or Cedula)
    • Contract of Lease (if leased)
    • Sketch/Pictures of the business location (3 copies)
    • Locational/Zoning Clearance*
    • Certificate of Occupancy (Building and Unit)*
    • Building Permit and Electrical Inspection Certificate*
    • Sanitary Permit*
    • Fire Safety Inspection Permit*

    You might also like