Comments on: Philippines Foreign Corporation Branch Office

By: fran

fran — Wed, 31 Aug 2011 08:28:42 +0000

we are a recently-incorporated offshore trading company. since majority of the owners are Filipinos, we want to set up the principal office in Manila. will our office be under the jurisdiction of its foreign roots or will we be governed by domestic laws?

Fran, if you setup a domestic corporation everything falls under Philippine law. If you open a branch office the parent company will be under foreign law and the branch under Philippine law.

By: marie

marie — Sat, 09 Jul 2011 12:46:38 +0000

my boss want to open a small company in philippines,, but the problem $250,000 capital is very big,,pls advise us,, and also one of his problem is getting a visa in philippines,, pls advise us what is the best and easiet way to solve our problem,, thank you

Marie, it really depends on what ind of business you intend to operate.

By: Carlo

Carlo — Sat, 12 Mar 2011 02:25:26 +0000

We intend to incorporate a BPO company with the 100K Pesos inward remittance. Question, what will be the implication of this set up as far as income taxes are concerned? If there will be any, upon which shall i be based? on remittances?

Carlo, income tax is calculated on your profit. Mayor’s permit and BIR registration are based on authorized capital.

By: vic

vic — Mon, 24 Jan 2011 16:20:21 +0000

How does this proof of remitance work? Can I just open an account directly in a bank then obtain a bank certificate if I plan to open a branch office? Do you have a residence agent appointment template?

Vic, most banks require that you show them all the documents pertaining to the setting up of the branch office and then open an account for you. There are many documents needed not just a resident agent’s appointment letter.

By: Carol

Carol — Sun, 31 Oct 2010 18:57:18 +0000

Hi,
I have a dual citizenship and have a clothing design business-an LLC registered in Texas.I want to open a store in the Philippines under this same label and do the production of the garments there.Can I just register this as a branch office there or do I have to form a corporation in the Philippines?

Carol, you could open a branch office for the production. An American branch office cannot operate a retail store as it is of foreign nationality.

By: jason

jason — Tue, 14 Sep 2010 01:42:01 +0000

My question is if a US citizen wants to open a branch office but he will provide legal services (i,.e. advice on foreign immigration), does he/she still needs 200K capital??? to set up a branch office??
Thanks

Jason, A US citizen may not offer legal advice in the Philippines, but he may offer immigration consultancy. Yes, the US$ 200k paid-in is required to set-up the branch.

By: Alys Santelices

Alys Santelices — Fri, 20 Aug 2010 18:41:19 +0000

Hi,
We are virtual staffing company based in foreign country. We hire Home based Web Devs, Graphic designers, Telemarketers to work for our clients all over the world. I suggested to my foreigner employer to set up a monitoring office to house our home based VAs for easy monitoring. We intend to register the single proprietor company but we cant afford the required capitalization. As BPO company, what is the easiest way to register and legalize our operation here?

Alys, the best way is to incorporate a company. The required capitalization for a BPO is Php 100,000.00.

By: Lisa

Lisa — Thu, 12 Aug 2010 17:32:56 +0000

Hi,

I would like to know if SEC requires two years of financial statements to foreign corporations, who are planning to establish a branch office in the Philippines. My company, established on August 2009, has a financial statement for 2009. When talking to a consultant, I was told we need two years of financial statements. I’m confused. Do we also need to have board resolutions, by-laws, financial statements, be authenticated by Philippine embassy?

Lisa, I tried sending you an email, but the email address you gave is not valid.

By: Alejandro

Alejandro — Fri, 23 Apr 2010 20:46:14 +0000

I would like to know if you can start establishing your business before all the registrations have been finalized?

Also, how long does the whole process of registering a business and obtaining all necessary licences take?

Alejandro, you can not do any actual transactions until the business is registered. How long will it take to register, will depend if it is a corporation, sole proprietorship etc… but count around 2 to 3 weeks.

By: sandra

sandra — Mon, 05 Apr 2010 09:44:58 +0000

Does the rule of 5 to 15 Incorporators applicable to export business enterprise?

Can an export business enterprise be owned by 1 shareholder?

Sandra, all corporations must have at least 5 incorporators it does not what kind of business the corporation operates.