In Many parts of the world opening a Domestic Company with foreign ownership is a straight forward exercise. This is not the case in the Philippines, where a significantly complex set or requirements and legislation exists. There is a general threshold for foreign capital participation in domestic companies set at 40% of the subscribed capital. If Foreign capital participation exceeds 40%, a minimum paid up capital of USD200,000 is required. Filipino corporations require a minimum of five (5) directors who must all be shareholders and natural persons. A majority must be Philippine residents. The ratio of foreign directors to Filipino directors cannot exceed the ratio of foreign capital participation in the company.
We are specialists in Company Formations including onshore Philippine domestic companies with foreign ownership participation. Firstly, we will advise on the specific industry that the company will focus in. There are different regulations and requirements for different industries. We will advise on the structure of the Company in terms of the proposed foreign holding parent entity and the board makeup of the domestic company. We understand the concerns regarding minority equity and voting rights mandated under Philippine law and can provide advice and recommendations to suit.
Our Initial Set Up Services Prior to undertaking establishment works we will provide industry and structure consultancy in order to advise on the applicable and optimum solution. Once determined, we will carry out all the establishment works for the new Domestic Company. This includes:
- Corporate Secretary
- Treasurer-in-Trust
- Nominee Shareholders/Incorporators/Director(s) + T&Cs – (Voting dividends etc)
- Registered Office Address
- Account opening/account signatories
- Registration of the company with the SEC
- Bank Account opening/account signatories
- Business Registrations (BIR, SSS, Pag-IBIG, Philhealth, Mayor’s/Business Permit)
Our Post Set Up Services The exact nature of our works will vary depending on specific customers’ requirements, but typically it may include:
- Corporate Secretary
- Treasurer
- Nominee Shareholders/Directors/Officers
- Registered Office Address
- Account signatories
- Business (Mayor’s) Permit (annual renewal)
- Book Keeping and Accounting Services
- Tax filing
- SEC compliance and reporting
- Alien Employment Permit/Work Visa for Ex-pats
- Other BPO/KPO processes and ad-hoc services
