The number of foreign investors coming to the Philippines has increased in the last few years. Doing business here comes with various requirements which is why businessmen have many questions related to the incorporation procedures of a company.
Below, our Philippines company formation agents have answered some of the most frequently asked questions related to the procedure of opening a company.
1. Can a foreigner start a company in the Philippines?
Yes, the Philippines is open to foreign investors, therefore persons and companies from other countries can start companies here. Our agents can offer information on the laws related to foreign investments.
2. Do I need a residence permit for setting up a company in the Philippines?
Yes, you will need a residence permit if you want to live in the country and start a business here. If you don’t plan on moving to the Philippines, the residence permit is not required.
3. What types of companies can I open in the Philippines?
There are several types of structures available for company registration in the Philippines. These are:
- – the sole proprietorship;
- – the local limited liability company;
- – the foreign-owned limited liability company.
4. What are the main company formation steps in the Philippines?
The following steps must be completed in order to register a company in the Philippines:
- – appoint a local company formation agent who can represent the foreign investors in the relationship with the authorities;
- – have the company’s documents of incorporation drawn up and notarized;
- – deposit the share capital of the company in a bank account opened with a local bank;
- – file the company’s statutory documents with the Companies Registrar in the Philippines;
- – register for taxation, for VAT and social security purposes with the local tax authorities.
5. Must the company have a local address in the Philippines?
Yes, a company registered in the Philippines must have a local address. For this purpose, a virtual office can be used during the registration phase.
6. Are there any share capital requirements when opening a company in the Philippines?
The share capital requirements for setting up a company in the Philippines will depend on the type of company and the number of employees it will have. For foreign investors, the minimum amount of money starts at 100,000 USD and can go up to 3 million USD.
7. How do I open a company bank account in the Philippines?
Opening a bank account is not complicated and a foreigner will need a proof of residence in the Philippines and identification papers. We can handle the procedure of corporate bank account opening.
8. Does my Philippines company need any special business permits?
Yes, there are a few licenses which need to be obtained when opening a company in the Philippines. Among these is the Barangay Clearance which is required no matter the type of companies created.
9. What taxes must a company pay in the Philippines?
Philippines companies are subject to a corporate tax of 30%. The government offers various incentives through which this tax rate can be reduced.
Companies observe the IAS/IFRS rules for accounting and file their audited financial statements each year. These are audited by an independent certified public accountant. Our local team offers these types of services, along with bookkeeping, tax filing and payment, social security contributions, and other solutions for businesses. Our accountants in Philippines can give you more details about our services.
10. How long does the company registration process take in the Philippines?
The company registration process in the Philippines can take up to 2 months. However, an additional period should be considered for the licensing procedures.
If you have any other questions or need company formation services in the Philippines, please contact us.
Opening a company in the Philippines can also mean that the foreign investor will be interested in a long-term stay in the country. if you want to move to Philippines, discussing your options with our immigration expert is advisable beforehand. All foreign nationals are subject to certain qualifications, as well as a quota for an immigrant visa, based on nationality. We can detail these requirements.