Branches of a foreign corporation, while more advantageous tax-wise, are always considered fully foreign-owned and cannot be used if the activities to be undertaken are included in the Foreign Investment Negative list (FINL). The FINL mandates percentages of Philippine equity participation for businesses requiring the same by law or the Constitution. Corporations, on the other hand, can accommodate the necessary Philippine ownership.
The following are mandatory Philippine requirements for Domestic Corporations:
- A minimum of 5 incorporators, each of whom must be actual persons and who must hold at least a single share in the company
- A majority of the incorporators must be Philippine residents. Corporations must have between 5 and 15 directors (or trustees if a non-stock corporation), each of whom must have at least one qualifying share of stock
- A majority of the directors (or trustees) must reside in the Philippines
- All Domestic Corporations (those incorporated in the Philippines) must obtain their licenses from and register with the Securities and Exchange Commission to incorporate their new company
- Minimum paid-up capital requirement for corporations considered Domestic Market Enterprises (DMEs), where foreign equity exceeds 40%, is US$200,000
The following are mandatory Philippine requirements for Foreign Branches:
- The Branch must appoint a resident agent in the Philippines who will be in charge of receiving summons and legal processes
- Branches engaged in activities involving advanced technology, or employing at least 50 direct employees, are required to inwardly remit a reduced amount of US$100,000 as assigned capital. Export-oriented branches are not subject to minimum assigned capitalization requirements
PEZA Registration in the Philippines
Many foreign companies setting up export enterprises in the Philippines such as outsourcing and offshoring operations may opt to register with PEZA for tax incentives.
Our Philippine team will be able to advise whether your business suits PEZA and prepare for the business application accordingly.
BOI Registration in the Philippines
Many foreign companies setting up outsourcing operations (IT-BPO, call center, or IT companies) in the Philippines may opt to register with BOI for tax incentives. Many existing foreign-owned outsourcing companies are BOI-registered. Our team of experts and consultants will determine eligibility for BOI registration and organize all financial documents to be processed at BOI.
Our Philippine team will be able to advise whether your business suits BOI and prepare for the business application accordingly.
CEZA (Cagayan Economic Zone Authority) Tax and Fiscal Incentives
Ceza offers tax or fiscal incentives such as four to six-year income tax holiday, tax and duty-free importation of capital equipment, a special tax rate of 5 percent of gross income in lieu of all local and national taxes, tax credits for foreign corporations, and effective zero-rating for articles admitted to the zone from the customs territory under proper permit.
Our Philippine team will be able to advise whether your business suits CEZA and prepare for the business application accordingly.
Corporate and Accounting Services
Post incorporation of your Philippine entity, we will be able to support your business with the following services:
- Company secretarial services
- Product registration / Licence applications
- Annual compliances to the Company registrar and Tax authorities
- Provision of Registered Office
- Accounting and Book Keeping Services
- HR Services such as Recruitment
- Visa / Immigration services
How Kittelson & Carpo Consulting can Help You
Kittelson & Carpo Consulting, a fellow key subsidiary of In.Corp Group, is a consulting firm that assists companies with their set up in the Philippines, providing services such as business registration and permits, government compliance, work permits and visas, payroll and recruitment. Kittelson & Carpo Consulting is based in Taguig City, Makati City and Cebu City, Philippines. Its clients include small and medium enterprises from diversified industries including outsourcing and offshoring, product import and export, network marketing, recruiting, real estate, travel and accommodation, trading and manufacturing, mining, etc.
Access and start a company in the Philippines
With in-country specialists armed with a wealth of knowledge on the Philippines’ compliance requirements, Kittelson & Carpo Consulting is primed to take your company there.