Establishing a Branch Office
A foreign branch office is an organized corporation that is registered in the Philippines under existing foreign laws. A branch office should carry out the business activities of its parent company, and is authorized to earn income from its operations inside and outside the Philippines. Its main purpose is to provide marketing, sales, or customer assistance to new and existing customers of its parent corporation. It may also be used to distribute products, disseminate information, or merely establish the presence of its parent company within the Philippines.
• Accomplished SEC F-103 form
• Secured Name Verification Slip
• Authorized Board Resolution for the creation and establishment of the foreign branch office in the Philippines*
• Audited Financial Statements (AFSs) of the parent company*
• Authenticated copies of the Articles of Incorporation and By-Laws of the parent company (or equivalent)*
• Authorized resident agent for the Philippine office (must have Filipino residency)
• Certified remittance of minimum paid-up capital to local bank
• Obtained licenses and clearances from necessary government offices (if applicable)
*Specific requirement must be authenticated in the Philippine Embassy/Consulate of the parent company’s host country.
• Secure Name Reservation from SEC
• Prepare necessary parent company documents for authentication
• Open “Non-Resident” Account with a local bank
• Complete necessary application forms
• Present Registered Agent Appointment (if applicable)
• Pay filing fees
• Secure Certificate of Registration from SEC
• File registration with BIR
• Register with applicable government offices (if employing individuals)
• Obtain business and mayor’s permit from city of operations
A foreign branch office is 100% owned by the parent company and is not considered a Filipino entity, but a foreign entity licensed to do business within the country. A branch office is taxed at a rate of 30% on profit and dividend tax may apply on remitting profits back to the parent company.
Triple i Consulting’s services include:
• Obtaining business and mayor’s permit
• Office fitout and setup
• HR consulting
• Drafting employee contracts and labor manuals
• Providing recruitment and executive search
• Accounting, bookkeeping, and financial outsourcing services
• Outsourcing payroll processing
• On-going corporate compliance and filing
A branch office is a perfect company structure for foreign entities wishing to transact in the Philippines but not wanting to register under a domestic corporation. Since a new organization will not be created, ownership of the branch office belongs completely to the foreign entity. Triple i Consulting can aid your company and greatly reduce the registration time in establishing your company’s branch office in the Philippines.