The Philippines is geographically close to China, offering convenient trade and logistics. Since the introduction of the policy allowing investment immigration to the Philippines for $20,000 to obtain permanent residency, it has received continuous attention from many wealthy individuals in China. Immigrating to the Philippines is not complicated; there are no excessive requirements regarding academic qualifications or the source of assets, and the approval process is quite fast. After obtaining permanent residency in the Philippines, WorldWay dealings become more convenient, and some wealthy individuals even choose to invest and establish companies there. However, investing and establishing a company in the Philippines is not an easy task. According to Philippine law, when establishing a company in permitted industrial sectors, one should pay attention to the following aspects.
(1) Types of Companies. Based on the nature of the company, the Philippines classifies companies into two main categories: stock corporations and partnerships, and sole proprietorships.
(2) Application Procedures for New Foreign Enterprises. If the enterprise is a stock corporation or a partnership, apply for registration directly with the SEC. The required documents are as follows: ① Obtain and complete the application form from the SEC in six copies; ② A registered company name confirmed by the SEC as not duplicating other companies; ③ Articles of Incorporation (in English); ④ Proof of resident status of foreign shareholders issued by the Philippine Bureau of Immigration (ACR/ICR, SIRV, and visa of the foreign equity subscriber); ⑤ Proof of paid-in capital (total amount) for the enterprise issued by a Philippine bank; ⑥ Proof of inward remittance of foreign capital issued by a Philippine bank; ⑦ If it is a joint venture, a resolution from the Philippine board of directors must also be submitted. If the new foreign enterprise is a sole proprietorship, registration procedures should be handled directly with the DTI.
(3) Application Procedures for Establishing a Branch Office. Applications for registration can be made at the SEC headquarters in Manila. The required documents are as follows: ① Obtain and complete the application form at the SEC headquarters; ② A registered company name confirmed by the SEC as not duplicating other companies; ③ A copy of the parent company's board resolution authorizing the establishment of a branch in the Philippines, and the appointment of a local agent to receive summons from the SEC; ④ The parent company's financial statements for the most recent year, issued by an independent certified public accountant in the applicant's home country; ⑤ A copy of the Articles of Incorporation (in English); ⑥ Proof of inward remittance of capital issued by a Philippine bank (if the documents are provided from abroad, they must be notarized by a Philippine embassy or consulate).
(4) Foreign Enterprises Opening Representative Offices in the Philippines. Applications for registration must be made at the SEC headquarters in Manila. The required documents are the same as above. Among them, the initial inward remittance must not be less than $30,000. A representative office of a foreign company may not engage in profit-making activities in the host country, but it may directly provide information services, product promotion, and export product quality monitoring for its parent company's clients or users. For the various situations mentioned above, if the requirements are met, the SEC will complete the approval within 15 working days from the date of receiving the documents; otherwise, it will be deemed automatically effective.
