How does a Chinese company register a Philippine company?
Types of Philippine companies registered: joint venture, sole proprietorship.
Joint Venture Company:
Refers to the formation of a Filipino corporation as a joint venture between a foreign investor and a Filipino with a legally defined percentage of shareholding in an industry in which the Philippines requires partial ownership by a national. There are protections under the law for foreign investors with small shareholdings. The minimum registered capital is 20,000 pesos and the minimum paid-up capital is 5,000 pesos (about US$2,000), but except for new industries and enterprises exporting more than 70% of their products, the Filipino shareholding in general industries must be 60% or more, and the foreign investment must not exceed 40%.
The number of partners in the company is required to be 5-12. Therefore, the first and foremost prerequisite for a foreigner to set up this type of company is to find a suitable and reputable partner in the Philippines.
Sole Proprietorship:
To set up a branch or register a sole proprietorship in the Philippines, a minimum investment of US$2,000,000 (reduced to US$1,000,000 in the case of an advanced technology enterprise or the employment of 50 Filipino employees) should be remitted to the Bank of the Philippines (including the value of equipment and technology). The Philippine Securities Commission and the Department of Investments will consider the registration of a foreign company only after obtaining the relevant certificate issued by the Bank of the Philippines. Subsidiary of a foreign company with separate legal personality established in the Philippines.
There is no difference in policy treatment between a wholly-owned Philippine company and a joint venture company. The preferential policies of the Philippine government are mainly based on the investment industry, region or whether the products are exported or not, and have little to do with whether or not it is a wholly-owned company or the percentage of investment.
Incorporation Procedures
Apply for a company name with the Philippine Securities Commission, and register only if there is no duplicate name after examination;
Open an account with a Philippine bank and remit or deposit the funds required for registration and have the bank issue a certificate;
Rent an office;
Apply for registration with the Philippine Securities Commission, and after registration with the Philippine Securities Commission, submit it to the Philippine Investment Authority for approval;
Apply for a business license;
Registering with the Philippine Department of Revenue (DOR), applying for a tax identification number, printing or purchasing VAT invoices;
Chinese companies need to prepare the following documents to register a company in the Philippines:
Company name: You need to provide the name of the Philippine company you want to register and check the name to make sure there is no duplication.
Company Address: You need to provide the company's registered address in the Philippines, this can be the actual business address or the agent's address.
Scope of Business: You need to provide the scope and purpose of the company's business, including a detailed description of its products or services.
Articles of Incorporation: The Articles of Incorporation need to be submitted, including provisions on the company's organizational structure, management style, and shareholders' rights and interests.
Directors and shareholders information: the names, addresses, contact information and nationalities of the company's directors and shareholders need to be provided, as well as their identification documents (e.g. passports or ID cards).
Registered capital: the amount of the company's registered capital needs to be provided, as well as the manner and proportion of shareholders' contributions.
Other information: Depending on the circumstances, other information may be required, such as the company's organizational chart, resolutions of the shareholders' meeting, power of attorney, and so on.