Those interested in setting up a financial company in Philippines must comply with several laws and must obtain certain licenses before starting to operate. Our Philippines company registration advisors can offer information on the requirements for setting up a financial company in this country.
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Legislation related to the financial industry in the Philippines
Both local and foreign investors interested in starting a financial business in the Philippines must comply with the following laws:
- the Banking Law;
- the New Central Bank Law;
- the Financing Company Law;
- the Anti-Money Laundering Law;
- the Investment Houses Law;
- the Thrift Banks Law.
Our local agents can explain the different requirements of the laws mentioned above.
Types of financial businesses in the Philippines
Based on the legislation mentioned above, there are various types of companies one can set up in the financial sector in the Philippines.
Investors who set up a financial company in the Philippines will need to observe the licensing requirements applicable to the industry sub-sector in which they will operate. As such, several types of activities are licenses.
The following businesses require a financial license in the Philippines:
- banking institutions;
- financing companies;
- fintech companies;
- cryptocurrency businesses;
- insurance companies.
Capital market professionals, exchanges, clearing agencies, central depositories, and securities borrowing and lending agencies will also require a license for their specialized activities.
The activities of all financial companies in the Philippines are supervised and authorized by the Securities and Exchange Commission (SEC). More than one license can be obtained from the SEC and, in this case, the holder will be treated as an entity with a secondary license. Our agents who specialize in company registration in Philippines can offer you more details.
How to open a financial company in the Philippines
The first step to open a financial company in the Philippines is to choose and register one of the business forms prescribed by the Commercial Code. Among these private and public companies are the most employed. Following that, the financial must obtain a special license from the SEC if it falls under the regulations of one of the laws above.
The company registration phase also takes place with the SEC, under its Company Registration System (CRS). However, other stages of registration are needed, such as registering the business name, which takes place with the Department of Trade and Industry, more specifically the business name registration system.
Those interested in opening companies in the Philippines have various industries they can choose from. From industries that require a small start-up capital to businesses in industries that require higher amounts of money to get started, the Philippines is suitable for any type of business.
Special licensing requirements for a Filipino financial company
Applicants have two modes of submission when they apply for a financial license with the SEC. These include hard copy submission and electronic mail submission. We remind those interested that the authorities may request certain documents for clarification purposes. This means that the submission may go through additional stages.
Generally, the following documents are submitted for licensing purposes when investors set up a financial company in the Philippines:
- registration form;
- Articles of Incorporation and By-laws;
- Information about the minimum contribution (if required for the licensed business);
- Bank clearance and other clearance as may be required;
- Personal information concerning the directors and officers;
- Clearance from the Bureau of Immigration; Foreign investors who move to the Philippines to start a financial company can ask us more about the conditions that apply in their case.
Certain share capital requirements are imposed on financial companies, among which we can mention that lending companies require a minimum paid-up capital of P1,000,000 according to the Lending Company Regulation Act. These types of businesses are registered as ordinary stock corporations. Our team can help you file the incorporation documents if you want to open a company in the Philippines as a stock company.
Moreover, when investors set up a financial company in the Philippines, they observe the schedule of fees imposed by the Securities and Exchange Commission.
Examples of new license fees include:
- P50,000 for an exchange.
- P75,000 for a new broker dealer’s head office;
- P15,000 for an investment company adviser;
- P10,000 for the branch office of a capital market institution;
For full information on the requirements related to starting a financial company in this country, please contact our company formation agents in the Philippines.