Setting up a consultancy business in the Philippines – Legal requirements and the process
Table of contents
Setting up a consultancy business in the Philippines can be challenging for those who are unfamiliar with the regulations. Here’s a guide describing the legalities to set up your consultancy business in the Philippines with Emerhub.
Emerhub will take you through the steps for forming a consultancy company in the Philippines by obtaining:
- SEC license to operate
- Business Permit in the locality where the business is situated
- Certificate of Registration with the Bureau of Internal Revenue
- Certificate of Registration with the Social Institutions
- Bank account setup (Certificate of Deposit)
Certificate of Registration with the Securities and Exchange Commission (SEC)
Emerhub initiates the process by registering your consultancy firm with the Securities and Exchange Commission (SEC). This license allows you to conduct business operations in the region. SEC issues a license to foreign corporations to transact business in the Philippines while domestic corporations like subsidiaries are issued a certificate of incorporation.
- Online application submission
- Approval of SEC
- Sending of documents to signatories
- Submitting payment
- Physical submission of hard copies
- Release of the certificate
It takes approximately 30 working days to gain an SEC Certificate.
Business Permit from the Local Government Unit (LGU)
A business permit or the (Mayor’s permit) from a Local Government Unit (LGU) is a certificate issued by the government to ensure that your business is legitimate and is permitted to operate in the municipality or city where it is registered. The business should comply with the specific requirements of the business locale. Emerhub will apply on your behalf with the relevant LGU.
- Submission of Application Form and documents
- Assessment and payment of fees
- Issuance of Business Permit
This process takes approximately 30 working days to complete.
Certificate of Registration with the Bureau of Internal Revenue (BIR)
The Bureau of Internal Revenue (BIR) is a government agency that is responsible for regulating, supervising, and collecting taxes owed by all businesses in the Philippines. The Bureau will provide your business with its own tax identification number (TIN) and the authority to print invoices, receipts and others. Your business is registered with the BIR manually while all future transactions are reported online by Emerhub.
- Application of TIN (Taxpayer Identification number)
- Secure authorized computation from the officer-in-charge
- Payment of DSTs (Documentary stamp tax)
- Template request from an Authorized Printer
- Submission and acceptance of documents
- Release of COR (Certificate of Registration)
- Release of ATP
- Stamping of Books of Account
The process takes approximately 14 days.
Certificate of Registration with the Social Institutions
Companies registered in the Philippines are required to report their new employees to social institutions. There are three social institutions in the Philippines that regulate the benefits for employers and private employees based on the income they earn. It is mandatory to notify these institutions on the status of employment of the employee legally working in the Philippines in order to grant them the mandatory employment benefits they are entitled to them under the Philippines Labor Code. To do this, Emerhub will register your business with the below-mentioned institutions:
- Pag-IBIG is the Home Development Mutual Fund (HDMF) which provides home loans and affordable housing finance assistance to employees.
- SSS – Social Security System provides protection against various contingencies such as calamities, sickness, pregnancies, old age, disability, unemployment, and death. t is obligatory for employers to register with SSS upon hiring their first employee.
- PhilHealth is the medical insurance program by the Philippine Government under the Philippine Health Insurance Corporation (PHIC). According to the law, all Filipinos are mandatorily covered under the National Health Insurance Program which provides universal health coverage. Employers can register with PhilHealth through the Philippine Business Registry (PBR). In case, the employer is unable to register through the PBR, he may proceed to his nearest Local Health Insurance Office and submit a duly filled Employer Data Record (ER1) Form in duplicate.
The process of registration is similar for all three institutes:
- Preparation of documents by Emerhub
- Signing of documents by the authorized signatory
- Submission to the government agency
- Evaluation of documents submitted
- Release of Certificate
- Creation of online access
It takes 30 working days to register with the social institutions in the Philippines to set up a consultancy business.
Bank account Set up
A corporate bank account in the company’s name has to be opened in order to execute future transactions. The account handles all the company’s financial activities, accounts payable, employee payroll, and profits.
- Preparation of bank forms by Emerhub
- Secure the signature of the authorized signatories and directors
- Submission to the relationship manager
- Evaluation of documents
- Issuance of the account number
It takes approximately 30 working days for a bank account set up.
- Security Exchange Commission (SEC) license: 30 working days
- Business Permit from the Local Government Unit (LGU): 30 working days
- Certificate of Registration with the Bureau of Internal Revenue (BIR): 14 working days
- Certificate of Registration with the Social Institutions: 30 working days
- Bank account set up: 30 working days
We understand that expanding your consultancy business to a new international market is a time-consuming and frustrating process. We are here to make sure it’s not!
Emberhub’s business registration and corporate compliance services can help you incorporate your business in the Philippines successfully. While you focus on growing your business, our team of local experts compliantly handles all the company registration paperwork, so you don’t have to.
Get in touch today by filling out the form below.
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