Planning to set up a business across the border? Did you consider Philippines as your next business destination? If not yet, you will be glad to know that business scopes are pretty fabulous in Philippines.
Especially if you try to set up a partnership business in Philippines, you will be enlisted for a list of advantages that might not be available in some other countries. Before going more on this topic, let’s get some knowledge about Philippines itself.
Philippines, officially known as the Republic of the Philippines is a Southeast Asian country situated in the Western Pacific Ocean. The country comes with some of the most beautiful island landscapes in the world which lie in a closely scattered manner in the ocean.
This is why the Philippines, is known as an archipelagic nation. The country is one of the high demand tourist hubs in the world. This is because this country comes with natural beauty, pristine beaches, fabulous islands and mixed blend of colorful cultures.
Business opportunities in Philippines
If you think this nation lives on tourists only, then you are wrong. The republic of Philippines is equally an enticing destination for investors who are interested to set their corporate ventures across their border.
The business policies are very much flexible for foreign investors and changing the business strategy when needed is much convenient in Philippines. Moreover, if you compare the business initiation costs, this country in Asia offers a very low investment cost for investors to kick start their business.
In addition, with low investment cost, the government of the country provides various incentive packages to new entrepreneurs for making kick starts of their business. The government always seems to ensure business friendly environment and infrastructure development facilities for interested business initiators.
All these great facts suggest another point, and that is Philippines also have business-friendly legislations, which facilitates foreign investors coming from all around the world to set their ventures in Philippines.
Aside from many business options available to attend in this country, setting up a partnership business in Philippines is equally a popular option for entrepreneurs to begin with. Here in this article we will discuss all about incorporation process of a partnership business in Philippines.
A partnership business in the Philippines
Mentioned beforehand, the country allows comparatively low investment opportunities to start any business. Same opportunity goes for a partnership business when started in Philippines. So, what is this partnership scope in Philippine’s business environment?
Basically, a partnership business is a legal form of business valid in the Philippines where minimum of two to multiple numbers of individuals can administer and share both the business benefits and losses of a same company.
Right after typical corporation business type, partnership business counts to be one of the most popular corporate strategies among new individuals trying to start their own business in the Philippines. Before getting in-depth knowledge of the registration process of partnership company let’s have a look on documents requirement for the whole incorporation process in Philippines.
Paperwork requirements for business registration process in Philippines
Before proceeding for the partnership business registration process in Philippines, you need to be prepared with the following documents, which will make the whole incorporation process smoother and hassle free.
Following are the documents you need to make available when asked during various stages of incorporation processes:
- Applicant’s name verification slip
- Articles of Partnership (AP)
- Registering a data-sheet
- Bank certification
- Name list of the partners
- Address of the office premises
- All contact numbers, names, addresses, TIN certificates and other personal credentials of all partners.
- Each partners’ capital contributions in the company
- Letter of business purpose
You might need additional paperwork in special cases. These documents include:
- An affidavit signed by at least partners of your to be a company for confirming the company name. This is however, not necessary if already mentioned in Article of Partnership (AP) form.
- Clearance certification from secondary government bodies, such as fire departments, natural resource and water departments, municipals if suggested.
- FIA Form – 105 in case of partners who is/are from different foreign nations.
Registration process of partnership business in Philippines
Once you have these entire documents standby, you are now ready to roll on with the business registration process. It must be noted that few government bodies play vital roles in the company registration process; among them, SEC or Securities and Exchange Commission, SSS or Social Security System, Barangay office and Bureau of Internal Revenue or BIR must be specifically highlighted. Below is the process of incorporating of a partnership business in Philippines:
Registering the business name
The name registration of the partnership company is the very first task business owners must carry out to establish a business. The name of the company has to be registered at the SEC or Securities and Exchange Commission of the Philippines.
They are the government security agency that governs and approves all company naming processes and certifies a company in order to have a valid business license to operate commercial acts in Philippines.
Obtain a Barangay clearance
All new companies going through the incorporation process in Philippines must obtain a Barangay Clearance certificate from the nearest Barangay office. This certificate from Barangay insures that your company means no harm to the community where the company establishment is taking place.
Therefore, the approval suggests that this new business will remain community friendly once established under the regulatory instructions of the Barangay.
Register the partnership business with the SSS
SSS or Social Security System need to be registered by any new company ready to roll in Philippines. Any company that is ready to hire employees must go through this registration process. The SSS registration enlists both the business as well as its employees.
The SSS ensures welfare of the employee who is going to work and generate remittance for your partnership company. Ignoring the registration process with SSS is considered violation of social security law, which results fine and federal punishments wherever applicable.
Get approval from Mayor’s office
Once name registration is done with SEC, Barangay certificate is obtained, and SSS registration is completed, the next step is to get the approval certificate from the Mayor’s office nearby to your address. This particular permit assures that your company is going in parallel with the municipality standards and regulations.
Here the municipality monitors and provides clearance on the basis of the company’s basic compliance availability such as fire and safety, sanitation, water usage, etc.
Incorporating your partnership company with the BIR
This is the last step of setting up a partnership business in Philippines. Following the Mayor’s approval, owners of a partnership company need to register and obtain a BIR certificate. You have to consider BIR registration fee of 500 pesos which you have to pay annually as renewal. BIR which represents Bureau of Internal Revenue issues a certificate to any new company, in your case a partnership company.
Registering with the Bureau of Internal Revenue (BIR) will validate you to print account registration books and official receipts for your new company. The certificate will also allow you to obtain a separate TIN certificate for each partner in your partnership company.
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