How to Register a Non-profit Organization in the Philippines

Thinking of entering the Philippines’ thriving NGO sector? Starting a non-profit organization in the Philippines requires careful planning and adherence to legal requirements. In this article, we’ll give you a comprehensive guide on how to register your non-profit organization, detailing the necessary steps, documentation, and compliance obligations. 

An Overview of Non-profit Organizations in the Philippines

What is Considered a Non-profit Organization?

Non-Profit/Governmental Organizations (NGOs or NPOs) are established to achieve specific social goals rather than to generate profit. Non-profit organizations often rely on a mix of funding sources, including donations, grants from government and international agencies, and income from services provided.

Any surplus generated by an NGO must be reinvested into the organization’s activities rather than distributed to members or stakeholders. Thus, NGOs in the Philippines are typically registered as non-stock corporations under the Corporation Code and are governed by specific regulations set forth by the SEC. There are several types of non-profit organizations, including:

• Foundations – established primarily for charitable purposes and often focus on specific areas such as education, health, or community development.
• Non-stock Corporations – organizations that do not issue shares and are formed for purposes like social welfare, cultural promotion, or environmental conservation. They are registered with the SEC and must operate exclusively for their stated purposes.
• People’s Organizations (POs) – Grassroots entities formed by individuals within a community to address local needs and interests. They often focus on issues like agriculture, labor rights, and community development.
• Microfinance NGOs – these organizations provide financial services to low-income individuals or communities to promote entrepreneurship and economic self-sufficiency.

Legal regulations to consider for Non-Profit Registration in the Philippines

Non-profit organizations in the Philippines are subject to a comprehensive legal framework set by the Security Exchange Commission. When setting up an NGO in the Philippines, you must ensure that you comply with the following regulations:

• Registration of non-profit organizations – Under the Securities Regulation and the Corporation Code, all corporations, including NGOs must register with the SEC and ensure compliance with corporate government standards. This includes drafting the NGO’s Articles of Incorporation and By-Laws. 
• Obtaining Necessary Permits and licenses – NGOs are required to secure business permits from local government units (LGUs) where they operate. This includes obtaining necessary clearances such as:
  • Barangay Clearance
  • Occupancy Permits
  • Fire Safety Permits
• Revenue Regulations – NGOs must operate exclusively on charitable or social welfare purposes and must maintain transparent financial practices, under the Anti-Money Laundering Act (AMLA). Although non-profit organizations enjoy tax exemptions and benefits, they are required to register with the Bureau of Internal Revenue (BIR) and obtain a Tax Identification Number (TIN). 

Important: Depending on your activities, you may need to register with other government agencies in the Philippines like the Department of Social Welfare and Development (DSWD) or Department of Education (DepEd). 

Emerhub is here to help you with your NPO’s SEC registration, obtaining permits and licenses from LGUs, and compliance with revenue regulations. Our local experts can guide you through the complex legal framework, helping you prepare and submit all required documents to the SEC, LGUs, and BIR. 

Registration Process for Non-profit Organizations in the Philippines

Prerequisites for NGO Registration in the Philippines

To qualify as a non-profit organization, your company must meet the following criteria as per SEC regulations::

• Number of Incorporators – You must have a minimum of five or a maximum of 15 incorporators. The majority of these incorporators must also be residents of the Philippines. Foreign nationals can also be included as long as they do not exceed the majority. 
• Capital Requirements – Most non-profit organizations have no fixed capital requirements except for foundations. This type of NGO must have a minimum capital contribution of PHP1,000,000 (approximately USD22,800), evidenced by a notarized certificate from a bank. 
• Required documents for registration:
  • Articles of Incorporation – must clearly state the non-profit nature of the organization and include details such as its primary purpose, location, and names of initial trustees.
  • By-Laws – outlines the internal rules governing the organization’s operations and management structure.
  • List of Members and Contributors – a comprehensive list detailing all members and contributors involved with the organization is required to ensure transparency and accountability.
  • Name Verification Slip – Before registration, organizations must secure a name verification slip from the SEC to confirm that their chosen name is unique and not already in use.
• Additional registration – Depending on the nature of your activities (e.g., educational or social welfare), additional registrations may be required with relevant government bodies such as the Department of Education or the Department of Social Welfare and Development (DSWD). 

How to register your Non-profit Organization in the Philippines

As mandated by the SEC, all NGOs need to be registered to ensure compliance with government standards. Emerhub can help you navigate the key steps for setting  up a non-stock and non-profit corporation in the Philippines through our comprehensive company registration service:

1. Gather all the necessary documents and information – as outlined in the previous section, we can help collect and review all necessary documents, and draft the Articles of Incorporation and By-Laws of your NGO. 
2. SEC filing – we can help facilitate your SEC submission by completing your application forms. You also need to pay all the required filing fees, which vary depending on the organization’s capital structure.
3. Tax Authority Registration – After receiving approval from the SEC, Emerhub will help you obtain a TIN from the BIR. This registration must be completed within 30 days of incorporation. Non-profits must demonstrate that they are organized exclusively for charitable purposes and comply with relevant regulations.
4. Obtain local government permits – to operate legally at the local level, we can help your NGO secure all the necessary permits from LGUs. 

• Business permits
• Barangay clearance
• Sanitary permits
• Fire safety inspection certificates

5. Certification as a Donee Institution – to allow donors to claim tax deductions on contributions made to your organization, we can assist your NPO in obtaining this certification from the Philippine Council for NGO certification. 

Ensuring Post-Registration Compliance

Once your NGO is registered, maintaining compliance is vital for your organization’s longevity, as you must demonstrate transparency regarding funding and donations:

• Your NPO must regularly report to both the SEC and BIR. This includes submitting annual financial statements and updates on organizational activities.
• Upholding transparency in operations fosters trust among donors and stakeholders.
• Conducting regular audits ensures financial integrity and compliance with regulatory standards.

To simplify the registration process, having a team of experienced professionals can significantly help expedite the process. Emerhub provides a comprehensive service for NGOs and can help you get started on your operations in the Philippines. 

Want to set up an NGO in the Philippines? Fill the form below to get in touch with one of Emerhub’s compliance experts in the Philippines.