Register Company in the Philippines
Registering a company in the Philippines is hassle-free when you know the steps to follow. With Block3 Finance at the wheel, you can channel your time and energy into other more important aspects of your business.
With our streamlined approach, you can rely on our team of experts to provide you with a seamless experience throughout the entire process of registering a business in the Philippines. Our ultimate goal is for your company to be operationally ready within the stipulated time frame.
Our service package includes
Company registration with the Philippines Department of Trade and Industry (DTI)
Provision of local nominee director (if required)
Company secretary and registered address
Opening a corporate bank account
Tax registration
Annual accounting and tax services
How Long Does It Take to Register a Company in the Philippines and Open a Corporate Bank Account?
At Block3 Finance, we complete your company registration in the Philippines efficiently:
Upon receiving the required due diligence documents from the directors and shareholders, we will proceed with the search for the availability of your preferred business name and apply for the registration with the Department of Trade and Industry (DTI).
The process can be done remotely, so you won't need to travel to the Philippines during registration.
For most business entities, the company can be registered within 3 weeks, and you can expect to receive your incorporation documents, including the company registration certificate, memorandum & articles of association, and the register of directors and shareholders.
Within 4 weeks of registration, we will open your corporate bank account, either with a local bank or an international global bank depending on your business needs.
Consequently, you can expect to start operations and issue invoices within 7 weeks upon engaging Block3 Finance. Please note that the timeline may vary depending on the business entity, business activity, and corporate structure.
How to Open a Company in the Philippines?
1. Planning and Strategy: We will understand your business activities and goals before recommending the most suitable business entity for your company in the Philippines.
2. Pre-Registration Requirements: Once confirmed, we will guide you through the company registration requirements in the Philippines, which depend on the entity chosen for your business. These may include local resident agents, company secretaries, and preparation of financial statements.
3. Registration with SEC: After meeting the requirements, we will prepare the necessary incorporation documents, including the Article of Incorporation and Treasurer’s Affidavit, and register the company with the Securities and Exchange Commission (SEC).
4. Acquire Barangay Clearance and Business Permit: We will then apply for the Barangay Clearance from the local government and a Business Permit from the municipality where the business is located.
5. Registration with BIR: Next, we will assist you in registering with the Bureau of Internal Revenue (BIR) to obtain a Community Tax Certificate and Taxpayer Identification Number (TIN).
6. Registration with Other Agencies: If required, we will register your business with other agencies such as the Social Security System (SSS), Philippine Health Insurance Corporation (PHIC), and others based on your business operations.
7. Open a Corporate Bank Account: Our team will assist in opening a corporate bank account with a reputable local or international bank.
8. Compliance with Local Laws: After incorporation, we will help ensure that your business remains compliant with local laws by preparing tax returns, financial statements, and any other required filings.
Accounting and Tax Obligations
Accounting Requirements Bookkeeping: Proper records should be maintained by Philippine corporations, including maintaining six books:
Journal
Subsidiary Purchases Journal
Subsidiary Sales Journal
General Ledger
Cash Receipt Book
Cash Disbursement Book
Annual Financial Statements: Corporations are required to prepare and submit annual financial statements to the SEC and BIR, including a mandatory audit.
Record Retention: Records must be kept for at least five years.
Penalties for Non-Compliance: Non-compliance with these accounting obligations results in penalties, including surcharges on unpaid taxes and interest.
Tax Obligations Corporate Income Tax (CIT): The corporate income tax rate is 25%, which is gradually set to reduce to 20% over the next 10 years.
Withholding Tax: 15% on dividends paid to non-residents and 20% on royalties.
Value-Added Tax (VAT): The standard VAT rate is 12%.
Fringe Benefits Tax (FBT): A 35% tax on the grossed-up value of fringe benefits provided to employees.
Minimum Corporate Income Tax (MCIT): A 2% tax on gross income applies if standard CIT is less than the MCIT.
Types of Companies in the Philippines
Block3 Finance can help you determine the most suitable type of company structure based on your business needs. The main company types in the Philippines are:
Domestic Corporation: The most common structure, offering limited liability protection and the ability for full foreign ownership in select industries.
One Person Corporation (OPC): Ideal for single-business owners with limited liability. Suitable for SMEs but not for banking or financial services industries.
Branch Office: A branch is an extension of the foreign parent company, with 100% foreign ownership, but the parent company is fully liable for branch debts.
Representative Office: Used for conducting market research and promoting the parent company’s materials but restricted from direct business activities.
Holding Company: Primarily used for controlling assets and investments of other companies. Special tax exemptions are available for income derived from abroad.
Free Trade Zone Company: Businesses in Free Trade Zones enjoy tax exemptions for up to 6 years.
Advantages of Registering a Company in the Philippines
Foreign Direct Investment: The Philippines government welcomes foreign investments with pro-business policies and incentives for foreign-owned companies.
Tax Incentives: Investors in specific industries can benefit from tax exemptions and reduced rates.
Skilled Workforce: The Philippines has a highly educated and English-speaking labor force, making it an attractive destination for international businesses.
Contact Block3 Finance Today
If you are interested in registering a company in the Philippines, contact Block3 Finance for expert advice and seamless registration services. Our experienced team will guide you every step of the way and ensure your business is set up efficiently and compliantly.
