Forming a Corporation in the Philippines as a Foreign Investor
The Philippines has become an increasingly popular destination for foreign investors looking to incorporate and do business in recent years. With its strategic location, large English-speaking population, and robust economic growth, the country offers tremendous opportunities across sectors like manufacturing, tourism, agriculture and more.
However, foreign investors face certain challenges when setting up a corporation in the Philippines. One key requirement is having a physical address in the Philippines for the company. This allows the corporation to be legally registered and compliant with regulations.
In this blog post, we’ll walk through the step-by-step process for forming a corporation in the Philippines as a foreign investor. We’ll also look at why having a Philippine address is critical and how you can easily fulfill this requirement.
Requirements for Forming a Corporation in the Philippines
To incorporate in the Philippines, here are some of the key requirements:
- At least 1 incorporator/subscriber
- Subscribers must be natural persons and majority must be residents of the Philippines
- Paid-up capital stock depending on the scope of business
- Articles of Incorporation and By-Laws
The application is filed with the Securities and Exchange Commission (SEC). Other documents like the company by-laws, articles of incorporation, and addresses and identification for each subscriber is also needed.
Meeting the address requirement as a foreign investor is crucial for successfully completing the incorporation process.
The Importance of a Philippine Address
To register with the SEC and other government agencies like the Bureau of Internal Revenue (BIR), foreign investors must provide proof of address in the Philippines. This address appears on the Articles of Incorporation and other official documents.
Without a local address, foreign investors will not be able to incorporate or get a business permit. Having a Philippine office address provides a physical location for receiving mail and notices.
Virtual office addresses offer an easy solution for offshore investors to fulfill the Philippine address requirement without having to setup a physical office space. Our law firm offers virtual office addresses for our clients for a minimal fee.
Step-by-Step Process for Forming a Corporation
Here is an overview of the step-by-step process for incorporating in the Philippines:
- Name Verification and Reservation – Confirm availability of the company name with the SEC.
- Prepare Incorporation Documents – Draft Articles of Incorporation, By-Laws, submit forms and supporting documents.
- File Application with SEC – Submit required forms and documents for SEC approval.
- Pay Registration Fees – Pay fees for incorporation with SEC and other agencies like BIR.
- Obtain Tax Identification Number (TIN) – Register with the BIR to obtain a TIN.
- Optional Post-registration Steps – Apply for permits, register employees for benefits, open company bank account.
Having a Philippine address like a virtual office facilitates key steps like SEC/BIR registration and bank account opening.
Conclusion
Forming a corporation in the Philippines as a foreign investor is very attainable by following the step-by-step process outlined above. Partnering with a firm like us that provides virtual office addresses can help offshore investors meet the Philippine address requirements quickly and easily. This allows for a smooth incorporation process and sets up your business for long-term success in the country.
For assistance with Philippine incorporation and virtual offices, feel free to reach out to me at kpborra@borralaw.com. I hope this guide provides valuable insights and information for foreign investors seeking to do business in the Philippines.