- \n
- Domestic Corporation (organized under Philippine laws)\n
- \n
- 100% Filipino-owned<\/li>\n
- 60% Filipino-owned and 40% Foreign-owned<\/li>\n
- 40.01% to 100% Foreign-owned (subject to certain provisions under Foreign Investments Act<\/em>)<\/li>\n<\/ul>\n<\/li>\n
- Foreign Corporation (organized under the laws of the corporation\u2019s country of origin)\n
- \n
- Branch Office<\/li>\n
- Representative Office<\/li>\n
- Regional Area Headquarters (RHQ)<\/li>\n
- Regional Operating Headquarters (ROHQ)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n
- Non-Stock Corporation<\/span> \u2013 a corporation that neither generates profit nor issues shares of stock to its members, and could have any of the following purposes:\n
- \n
- Charitable;<\/li>\n
- Religious;<\/li>\n
- Educational;<\/li>\n
- Cultural;<\/li>\n
- Civic service; and<\/li>\n
- Other similar purposes, such as chambers or combinations trade, industry or agriculture<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Ownership Structure:<\/p>\n
- \n
- Domestic corporations are required to be formed by at least five (5) but not more than fifteen (15) incorporators<\/span> who must have individual subscriptions of at least one (1) share in the company; incorporators<\/em> are stockholders or members mentioned in the Articles of Incorporation as originally forming and composing the corporation and are signatories thereof<\/li>\n
- For a foreign corporation to be granted a License to Operate in the Philippines as a business entity, it is required to appoint one (1) resident agent<\/span> who shall accept all summons or legal processes served, arising out of any business or transaction which occurred in the Philippines, to the corporation<\/li>\n<\/ul>\n
Government Agencies Involved in the Registration Process:<\/p>\n
- \n
- Securities and Exchange Commission (SEC) (for the creation of juridical entity of the corporation<\/em>)<\/li>\n
- Bureau of Internal Revenue (BIR) (for corporate taxation<\/em>)<\/li>\n
- Local Government Units (LGUs) of the location where you want to establish your business\n
- \n
- Barangay Hall<\/li>\n
- Mayor\u2019s Office<\/li>\n
- Business Permit and Licensing Office (BPLO) of the Municipal\/City Hall<\/li>\n<\/ul>\n<\/li>\n
- If employing individuals, a corporation should register with the following agencies:\n
- \n
- Social Security System (SSS)<\/li>\n
- Philippine Health Insurance Corporation (PhilHealth)<\/li>\n
- Home Development Mutual Fund (Pag-IBIG Fund)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
*See table below for companies requiring endorsements from other government agencies<\/em><\/p>\n
INVESTMENT VEHICLE: PARTNERSHIP<\/h3>\n
Types:<\/p>\n
- \n
- General Partnership<\/span> \u2013 a business arrangement where two or more people, usually referred to as general partners<\/em>, agree to share among themselves all assets, profits, and financial and legal liabilities of the business; the general partners can take part in the daily management of the partnership and each has unlimited liability for the actions of the partnership, including the actions of other partners<\/li>\n
- Limited Partnership<\/span> \u2013 a type of partnership where the partners, usually referred to as limited partners<\/em>, are only held liable to the extent of their investment in the partnership; unlike general partnerships, the limited partners have no management authority or input towards the operations of the company<\/li>\n<\/ul>\n
Ownership Structure:<\/p>\n
- \n
- Can be formed by two (2) or more individuals <\/span>who agree to do business together for profit<\/li>\n<\/ul>\n
Government Agencies Involved in the Registration Process:<\/p>\n
- \n
- SEC or Department of Trade and Industry (DTI) (for the creation of juridical entity of the partnership; registration depends on the capital of the corporation, if the capital is PHP 3,000.00 or more, then it should be registered with the SEC; conversely, if the capital does not exceed the aforementioned amount, then it should be registered with the DTI<\/em>)<\/li>\n
- BIR (for corporate taxation<\/em>)<\/li>\n
- LGUs of the location where you want to establish the partnership\n
- \n
- Barangay Hall<\/li>\n
- Mayor\u2019s Office<\/li>\n
- Business Permit and Licensing Office (BPLO) of the Municipal\/City Hall<\/li>\n<\/ul>\n<\/li>\n
- If employing individuals, a partnership should register with the following agencies:\n
- \n
- Social Security System (SSS)<\/li>\n
- Philippine Health Insurance Corporation (PhilHealth)<\/li>\n
- Home Development Mutual Fund (Pag-IBIG Fund)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
*See table below for companies requiring endorsements from other government agencies<\/em><\/p>\n
INVESTMENT VEHICLE: SOLE PROPRIETORSHIP<\/h3>\n
Types:<\/p>\n
- \n
- Filipino-owned Sole Proprietorship<\/span><\/li>\n
- Foreign-owned Sole Proprietorship<\/span> \u2013 contrary to common belief, foreign entities can set up sole proprietorships in the Philippines as long as they meet the minimum capital requirement<\/a> of US$ 200,000.00 and their proposed business activities do not fall under the areas of investment listed in the Foreign Investment Negative List (FINL) as partially or wholly restricted to foreign entities<\/li>\n<\/ul>\n
Ownership Structure:<\/p>\n
- \n
- Owned by a single individual who has full control and authority over the business<\/span>, referred to as the sole proprietor<\/em> and exclusively owns all assets and profits of the business; he or she is also personally liable for all the debts and losses that the business might incur<\/li>\n<\/ul>\n
Government Agencies Involved in the Registration Process:<\/p>\n
- \n
- Bureau of Trade Regulation and Consumer Protection of the DTI (for reservation of business name and creation of juridical entity of the sole proprietorship<\/em>)<\/li>\n
- BIR (for corporate taxation<\/em>)<\/li>\n
- LGUs of the location where you want to establish the sole proprietorship\n
- \n
- Barangay Hall<\/li>\n
- Mayor\u2019s Office <\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
*See table below for companies requiring endorsements from other government agencies<\/em><\/p>\n
INVESTMENT VEHICLE: COOPERATIVE<\/h3>\n
Types:<\/p>\n
- \n
- Credit Cooperative<\/span> \u2013 promotes and undertakes savings and lending services to create funds and grant loans for productivity and financial assistance among its members<\/li>\n
- Consumer Cooperative<\/span> \u2013 primary purpose is to procure and distribute commodities to both members and non-members<\/li>\n
- Service Cooperative<\/span> \u2013 engages in service-oriented activities such as medical, dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, and other such activities<\/li>\n
- Producers Cooperative <\/span>\u2013 undertakes joint production, for agricultural or industrial purposes<\/li>\n
- Cooperative Bank<\/span> \u2013 organized for the primary purpose of providing a wide range of financial services to cooperatives and their members<\/li>\n
- Multi-Purpose Cooperative<\/span> \u2013 combines two or more of the business activities listed above<\/li>\n<\/ul>\n
Ownership Structure:<\/p>\n
- \n
- Unlike corporations and partnerships, cooperatives have collective, democratic ownership<\/span> and are run by an electoral system where all members elect officers through a one-member-one-vote principle<\/li>\n<\/ul>\n
Government Agency Involved in the Registration Process:<\/p>\n
- \n
- Cooperative Development Authority (CDA) (for the creation of juridical entity of the cooperative<\/em>)<\/li>\n<\/ul>\n
REGULATED BUSINESS SECTORS IN THE PHILIPPINES<\/h2>\n
\nListed below are business sectors in the Philippines that require endorsement from specialized government agencies: <\/p>\n
\n
- Cooperative Development Authority (CDA) (for the creation of juridical entity of the cooperative<\/em>)<\/li>\n<\/ul>\n
- Consumer Cooperative<\/span> \u2013 primary purpose is to procure and distribute commodities to both members and non-members<\/li>\n
- Credit Cooperative<\/span> \u2013 promotes and undertakes savings and lending services to create funds and grant loans for productivity and financial assistance among its members<\/li>\n
- BIR (for corporate taxation<\/em>)<\/li>\n
- Bureau of Trade Regulation and Consumer Protection of the DTI (for reservation of business name and creation of juridical entity of the sole proprietorship<\/em>)<\/li>\n
- Foreign-owned Sole Proprietorship<\/span> \u2013 contrary to common belief, foreign entities can set up sole proprietorships in the Philippines as long as they meet the minimum capital requirement<\/a> of US$ 200,000.00 and their proposed business activities do not fall under the areas of investment listed in the Foreign Investment Negative List (FINL) as partially or wholly restricted to foreign entities<\/li>\n<\/ul>\n
- Filipino-owned Sole Proprietorship<\/span><\/li>\n
- BIR (for corporate taxation<\/em>)<\/li>\n
- SEC or Department of Trade and Industry (DTI) (for the creation of juridical entity of the partnership; registration depends on the capital of the corporation, if the capital is PHP 3,000.00 or more, then it should be registered with the SEC; conversely, if the capital does not exceed the aforementioned amount, then it should be registered with the DTI<\/em>)<\/li>\n
- Limited Partnership<\/span> \u2013 a type of partnership where the partners, usually referred to as limited partners<\/em>, are only held liable to the extent of their investment in the partnership; unlike general partnerships, the limited partners have no management authority or input towards the operations of the company<\/li>\n<\/ul>\n
- General Partnership<\/span> \u2013 a business arrangement where two or more people, usually referred to as general partners<\/em>, agree to share among themselves all assets, profits, and financial and legal liabilities of the business; the general partners can take part in the daily management of the partnership and each has unlimited liability for the actions of the partnership, including the actions of other partners<\/li>\n
- Bureau of Internal Revenue (BIR) (for corporate taxation<\/em>)<\/li>\n
- For a foreign corporation to be granted a License to Operate in the Philippines as a business entity, it is required to appoint one (1) resident agent<\/span> who shall accept all summons or legal processes served, arising out of any business or transaction which occurred in the Philippines, to the corporation<\/li>\n<\/ul>\n
- Domestic corporations are required to be formed by at least five (5) but not more than fifteen (15) incorporators<\/span> who must have individual subscriptions of at least one (1) share in the company; incorporators<\/em> are stockholders or members mentioned in the Articles of Incorporation as originally forming and composing the corporation and are signatories thereof<\/li>\n
- Foreign Corporation (organized under the laws of the corporation\u2019s country of origin)\n
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