How to Establish a Company in the Philippines

Joel Lienard
September 20, 2023 

The Philippines is a popular destination for foreign investors due to its low-cost labour, skilled workforce, and strategic location. If you are considering establishing a company in the Philippines, here are the steps involved:

Choose the right business structure

There are four main types of business structures in the Philippines:

1. Corporation
2. Partnership
3. Sole proprietorship
4. Cooperative

The type of business structure you choose will depend on your specific needs and circumstances.

Corporation:

1. Corporation is a legal entity that is separate from its owners. This means that the corporation's debts and liabilities are not the personal debts and liabilities of its owners. Corporations are the most common type of business structure in the Philippines.
2. Partnership:A partnership is a business owned by two or more people. The partners are personally liable for the debts and liabilities of the partnership. There are two types of partnerships in the Philippines: general partnerships and limited partnerships.
3. Sole proprietorship: A sole proprietorship is a business owned by one person. The sole proprietor is personally liable for the debts and liabilities of the business.
4. Cooperative:A cooperative is a business owned by a group of people who pool their resources together. Cooperatives are not taxed as corporations.

Reserve your business name

Before you can register your business with the Securities and Exchange Commission (SEC), you need to reserve your business name. You can do this online or by submitting a request to the SEC office in your area.

Prepare the required documents.

The required documents for registering a business with the SEC vary depending on the type of business structure you choose.

However, some of the common documents include:

1. Articles of Incorporation (for corporations) or Partnership Agreement (for partnerships)
2. Bylaws
3. Proof of Deposit of Capital
4. Specimen Signatures of the Officers

File the registration application

Once you have prepared the required documents, you can file the registration application with the SEC office in your area. The filing fee for registering a business with the SEC is PHP 500.

Obtain the Certificate of Registration

Once your registration application is approved, the SEC will issue you a Certificate of Registration. This is the official document that proves that your business is registered with the SEC.

Obtain other permits and licenses

In addition to registering your business with the SEC, you may also need to obtain other permits and licenses from the local government. The specific permits and licenses you need will depend on the nature of your business.

Here are some additional tips for establishing a company in the Philippines:

1. Do your research. Before you start the process, it is important to do your research and understand the requirements for establishing a company in the Philippines.
2. Get professional help. If you are not familiar with the process, it is a good idea to get professional help from a lawyer or a business consultant.
3. Be patient. The process of establishing a company in the Philippines can take some time, so be patient and don't get discouraged.

Please contact us for more information.