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U2309 Cityland 10 - Tower I, 6815 H.V. dela
Costa St. cor. Ayala Avenue, 1200 Makati City, Metro Manila
(02) 894-2608 & (02) 348-2193 | (+63)922-856-2358

Email : info(@)taxacctgcenter.ph

Type of Entity Consultancy


Identifying the type of business that will fit the market is mostly the focus of a start-up entrepreneurs. Sometimes, identifying the type of the entity structure are not considered fully on the initial stage resulting to a more serious business issue in a long-run.

Our team has worked with a number of clients both local and foreign in identifying the best entity structure before registering their companies with the SEC.

Book Consultation

Company Registration


 

Domestic Corporation

A domestic corporation in the Philippines is a business entity that is organized and existing in the Philippine under the Corporation Code of the Philippines (Batas Pambansa Bilang 68). This could operate any type of legitimate business declared in its purpose or purposes of registration such as but not limited to the following areas:

  • Rendering services of any type;
  • Trading or importation;
  • Manufacturing; and,
  • Realty operations.

It is a limited liability company and its stockholders could only be held liable to the extent of its contribution. It requires at least five (5) to fifteen (15) incorporators who are majority residents of the Philippines, and a capitalization of at least PhP5,000.00.

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Philippine Subsidiary

Foreign Corporations are allowed to establish Philippine subsidiaries for the sale of their goods and services in the Philippines. A Philippine Subsidiary is actually a domestic corporation in the Philippines that is organized and existing in the Philippine under the Corporation Code of the Philippines (Batas Pambansa Bilang 68) but is owned or controlled by a foreign corporation or multinational company abroad.  This could operate any type of legitimate business declared in its purpose or purposes of registration to the extend allowed by Philippine foreign investment laws, rules and regulations, such as but not limited to the following areas:

  • Rendering services such as business process outsourcing;
  • Manufacturing for export; and,
  • Other allowed operations.

It is a limited liability company and its parent stockholder could only be held liable to the extent of its capital contribution. It requires at least five (5) to fifteen (15) incorporators (Filipino citizen or foreigner), of which, majority residents of the Philippines. Its capitalization would depend upon its target market – domestic sale or export sales, extent of foreign ownership, and other factors.

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Philippine Branch Office

A Philippine Branch is a legal entity abroad that is provided by the Securities and Exchange Commission (SEC) by a License To Do Business in the Philippines on areas similar to the operations abroad that is allowed for 100% foreign investments in the Philippines.

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Regional Operating Headquarters (ROHQ)

Regional operating headquarters (ROHQ) in the Philippines is a legal entity abroad that is provided by the SEC a License To Do Business in the Philippines to render specific services to subsidiaries, branches, and affiliates within Asia Pacific Region and abroad.  With the limited operations, it is provided with tax and other incentives such as 10% income tax on taxable net income instead of the regular 30%, 15% final withholding tax on its managerial and technical expatriate employees in the Philippines and Filipinos holding similar positions.

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Regional Area Headquarters (RAHQ)

Regional Area Headquarters (RAHQ) a legal entity abroad that is provided by the SEC a License To Do Business in the Philippines as an administrative office and coordination center in the Philippines of its subsidiaries, branches,  and affiliates in the Asia Pacific Region and abroad. It a cost center and is not allowed to earn income so not subject to income tax and value added tax, but a withholding agent in its income payments subject to withholding tax.

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Philippine Representative Office

A Philippine Representative Office a legal entity abroad that is provided by the SEC a License To Do Business in the Philippines as its representative in the Philippines in dealing with the local clients of its head office with regards  to client orders, information dissemination and promotional activities, quality control, and other administrative works for its head office. This is also a cost center and not allowed to earn income so not subject to income tax and value added tax, but a withholding agent in its income payments subject to withholding tax.

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Foundations and Non-stock Non-Profit Company Philippines

A foundation or a non-stock non-profit entity to engage in charitable, religious, scientific, or cultural activities could be of local origin or that of foreign. In either case, it is required to register with the Securities and Exchange Commision (SEC) and other government agencies. By the nature of its operations and upon qualifications with the established rules, they are exempted from payment of income tax and other taxes.

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Other Gov’t Regi.strations


Tax Authority Registration and Renewal

The SEC would assign a tax identification number (TIN) from the Bureau of Internal Revenue (BIR or Tax Authority) that the Philippine Subsidiary should formalize its registration upon payment of annual registration fees (BIR Form No. 0605), documentary stamp tax (DST) for the shares subscribed, and other documentations. The Tax Authority will register the company, its books of accounts, and its official receipts or commercial invoices.

Annual payment of BIR registration must be complied with not later than every 31st of January of the year following.

 

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Business Permits and Licenses Registration and Renewal

The Philippine Subsidiary is likewise required to secure business permits and licenses from the city or municipality covering the place of its business address. Government and permits fees are normally imposed on business permits, community tax certificates, barangay clearance, fire permit, occupancy permit, and the likes.

Annual renewal of Business Permits should not be later than every 20th of January of the year following.

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Employee Welfare Registrations

The Philippine entity as an employer will likewise be required to register with the following government agencies:

  • Social Security System (SSS) for employee’s social security;
  • Philippine Health Insurance Corporation (PHIC) for employee’s health insurance benefits; and.
  • Home Development Mutual Fund (HDMF or Pag-ibig) for employee’s housing benefits.

Application forms containing employer and employee details along with some documentations will be required for the registration.

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Tax Incentives Registrations


Your intended operations could be entitled to some incentives in the Philippines such as income tax holiday (ITH) for six (6) years under pioneer status or four (4) years for non-pioneer status based on the Investments Priorities Plan (IPP), 5% gross income tax under Philippine Economic Zone Authority (PEZA), and other related government incentives applicable.

Our team can provide professional assistance in determining qualification of such tax incentives, preparation of related documentary requirements, and securing related registrations with such government agencies for the tax incentives.

Corporate Secretarial


A Corporate Secretary of a domestic company in the Philippines normally keeps corporate records (e.g. Articles of Incorporation, By-laws, General Information Sheets (GIS), Stock Certificates, Minutes of Meetings of stockholders or members and board of directors or trustees, and such other records), organize meetings upon call of the Chairman of the Board, attend meetings of the board and stockholders along with keeping a summary of meeting through the minutes of the meeting, ensure that transfers of shares complies with applicable rules, and such other functions related to housekeeping.

Our para-legal team and legal consultants can provide professional assistance on matters related to Corporate Secretarial works.

Resident Agent Retainership


For foreign corporations doing business in the Philippines (e.g. Philippine branch, representative office, regional or area headquarters, regional operating headquarters), they are required to have a resident agent in the Philippines who shall either be a resident person or a juridical entity in the Philippines and who shall be the repository of communications, formal notices, legal processes, and other related processes for and in behalf of the foreign corporation doing business in the Philippines.

Our team could act as professional Resident Agent in the Philippines and act as such accordingly.

Corporate Address Management


For foreign investors and other freelances registering in the Philippines, we could provide a virtual office for purposes of registrations with related government agencies. The service would normally entail managing mails and timely forwarding them to authorized company representatives.

Nominee Directorship


Registering a local domestic company or subsidiary would require at least five (5) incorporators who are natural persons, majority of whom are residents of the Philippines and normally acts as directors and dispose of such duties an functions of directors under the Corporation Code of the Philippines.

Our team can provide such nominee directors in the Philippines in compliance with applicable rules and not in violation of Anti-Dummy Law.

Incubation Services


We understand the ups and downs of setting-up a new legal entity in the Philippines and have our team willing and ready to provide professional assistance on such other matters related to the setting-up of the business in the Philippines until such time that full operations are achieved.

Our team along with our network of other professionals could provide professional assistance on other areas of necessity to business operations.

Contact Us

Tax and Accounting Center,. Inc.
U2309 Cityland 10 - Tower I, 6815 H.V. dela Costa St. cor. Ayala Avenue, 1200 Makati City, Metro Manila

Phone :
(02) 894-2608
(02) 348-2193

Mobile :
(+63)922-856-2358

Email : info(@)taxacctgcenter.ph

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