To legally operate a business in the Philippines it must be registered with the SEC, who will either issue a certificate of incorporation or a license to transact business. Business Process Outsourcing is considered an export enterprise and can be 100% foreign owned business.
Foreign investors looking to setup their BPO, call center, software development or back office in the Philippines can choose between two legal entities:
- Philippines Branch Office
- Philippines Domestic Corporation (subsidiary)
Each one has its advantages and disadvantages:
A branch office is required to have a resident agent and a security deposit of PHP100,000.00 with the SEC. The SEC may ask for the deposit to be increased depending on the gross turnover. Liability lies with the parent company.
A corporation must have a minimum of 5 directors, three of the directors must be residents of the Philippines, each director must own at least one share of the corporation. The corporate secretary must be a Filipino citizen.
Both entities may apply for tax incentives with either PEZA or the BOI.
Philippines Business Permits
Red tape is part of doing business in this part of the world and Dayanan Philippines Business Consultants are available to assist you in obtaining all the necessary business permits you need to operate your BPO with out hassle.
Companies must register with the Bureau of Internal Revenue and obtain Barangay Clearance and the Mayor’s Permit.
As soon as a BPO hires it’s first employees it must register also with the Social Security System, Phil-Health and HDMF.
Dayanan Philippines Business Consultants gives complete Philippines business registration services to acquire all the permits and licenses necessary for your Business Process Outsourcing to legally begin and do business in the Philippines.