The Republic of the Philippines
Tagalog : Republika ng Pilipinas
English : Republic of the Philippines
or simply the Philippines, is an archipelagic country located in Southeast Asia.
It is located in the western Pacific Ocean, separated from Taiwan by the Luzon Strait to the north, from Indonesia by the Celebes Sea to the south, from Vietnam by the South China Sea to the west, and from the Philippine Sea to the east. The Philippine archipelago consists of 7,101 islands, which can be divided into three major island groups: Luzon, Visayas, and Mindanao. The transportation between the islands is mainly by air and sea, so the Philippine aviation industry is quite developed. With a population of about 93 million people and about 11 million overseas Filipinos, the Philippines ranks 12th in the world, with a total population of over 100 million. The prehistoric Negritos may have been the earliest inhabitants of the archipelago, followed by the migration of the South Islanders who brought the Malay culture with them. The influence of Chinese and Islamic culture. The Philippines is a leading member of the Association of Southeast Asian Nations (ASEAN) and one of the 21 members of the Asia-Pacific Economic Cooperation (APEC). The Philippines has the 45th largest economy in the world. The main trading partners are the United States, Japan, China, Singapore, Korea, the Netherlands, Hong Kong, Germany, Taiwan and Thailand.
The process of opening a company is declassified! Things you should know about registered companies
Registered Company Type: Basically, there are three types of companies distinguished by their shareholding patterns, namely, 100 percent Filipino companies, 60/40 (60 percent Filipino and 40 percent foreign), and 100 percent foreign-owned companies. And of these, apart from the difference in ownership, 100% Filipino and 60/40 companies have lower capitalization, and 100% foreign-owned companies have quite high capitalization thresholds and are usually the type that multinationals and super landowners, or entrepreneurs who expect to open branches and locate all over the Philippines, would choose.
Capital Amount :
Can be divided into Authorized Capital, Subscribed Capital and Paid-up Capital, Authorized Capital refers to the registered capital of the size of the company. While Subscribed Capital is usually 25% of Authorized Capital, Paid-up Capital is 25% of Subscribed Capital which is the actual deposit required in the bank when incorporating a company. This is the amount that can be used for the purchase of equipment, furnishings, rent, personnel, etc. for the operation of the company. The amount of capital varies greatly depending on the type of company and industry. For example, for a simple retail restaurant, a 100% Filipino company and a 60/40 company would have an authorized capital of between 1 and 3 million pesos (depending on the size), while a purely foreign company would need 2.5 million USD! Note that foreign investment is in US dollars! However, students who want to start a business do not have to worry, since it is the amount of capital, which means that the company can be used for future operations, the details of the relevant, please contact Aojie business consultants!
Registration Authority :
Basically, company registration is done through the Securities and Exchange Commission (SEC), so when you register a company, you will have a basic document, which we also call "SEC". Simply put, since the first level of registration process needs to be done with the SEC, an SEC document for the creation of the company is prepared and this document is also the next document to be submitted for the registration process with the City hall local government, BIR (Department of Revenue) and so on.
Simple classification of Philippine companies:
SOLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
This is what we call DTI (Department of Trade and Industry); in simple terms, it is an individual company, the ownership of the company is owned by the founder, and he has full control over the company, and the assets and liabilities of the company are fully owned/assumed by the founder. In case of operating losses, the company must be fully paid off after deducting income. A sole proprietorship must be registered in the name of the individual and with the DTI. Generally, Filipinos usually register as DTI Corporations because of the low capitalization and other government fees and charges.
Under Philippine law, a partnership can be legally defined as limited liability and unlimited liability. The shareholders are either unlimited or limited liability, with unlimited liability being liable for the debt and limited liability being liable for the proportion of their capital contribution. Filipino shares must be at least 60%, and foreign ownership must not exceed 40%
This is what you are most familiar with, and what Summit generally recommends to its clients as a type of Philippine company. Unlike a sole proprietorship, a Filipino corporation is a corporation created by the shareholders of the corporation, with limited liability, consisting of 5 to 15 shareholders, each holding at least one share in the corporation, and a minimum capital of P5,000. For example, if Filipino shareholders account for 60% and foreign shareholders account for 40%, this is a Filipino dominated company, which is known to insiders as a 60/40 company; if foreign shareholders account for more than 40%, this is a foreign owned company.
What is the process to register a company in the Philippines?
- SEC (Securities and Exchange Commission) Registration: Register the company name, register the articles of incorporation.
- Registration at the local government office (LGU's) and application for a business license (BARANGAY (BRGY) & CITY HALL) for each city and town.)
- BIR (Bureau of Internal Revenue) to provide registration permits and request approval for establishment
- Apply for employee-related benefits from various government agencies
- Social Security System (SSS) → pension withdrawal
- Philippine Health Insurance Corporation Home (PHIC) → Health insurance provided by companies
- Home and Development Mutual Fund (HDMF or PAG-IBIG) → Home purchase loan fund
Attention, please! The above process is indispensable, this is the real complete company registration process.
Information required.
SOLE PROPRIETORSHIP
- ID issued by the Government of the Philippines [Native]
- Provide three company names
- Corporate Lease Agreement
- Registered capital [less than one million]
PARTNERSHIP
- Local ID & Foreigner's Passport
- 60% local, 40% foreign
- Tax Identification Number (TIN) card
- Provide three company names
- Corporate Lease Agreement
- Registered capital [less than one million]