Setting-Up a Philippine Representative Office
A representative office in the Philippines is foreign-owned corporation, organized and existing under foreign laws. It cannot derive income within the Philippines and is fully financed by the foreign corporation. Its main purpose is to deal directly with the clients of the parent company to conduct information dissemination, setup communication centers, and market company products. It may be used to provide customer service and support to the company and its products.
• Reserved Name from SEC
• Authorized Board Resolution for the creation and establishment of the 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
• Present accomplished documents to SEC for pre-processing
• Present verification of minimum paid up capital in non-resident account from local bank
• Present Registered Agent Appointment (if applicable)
• Pay filing fees
• Secure Registration from Records Division
• File registration with BIR
• Register with applicable government offices (if employing individuals)
• Obtain business and mayor’s permit from city of operations
A representative office in the Philippines may also act as a quality control center of the products for an export-oriented company, making it an ideal business structure in the country for any company looking for a customer service or marketing center. A representative office is also suited for Pharmaceutical and Cosmetic companies wishing to register their products before dealing with distributors, and is not required to pay income tax since no income is earned from within the country.
Triple i Consulting’s services include:
• Registering the representative office
• Obtaining local business permit
• Setting-up corporate offices
• Drafting the company manual and employment contracts
• Providing recruitment and executive search
• Accounting and bookkeeping outsourcing services
• Philippine payroll services
• On-going corporate compliance
A representative office in the Philippines allows for some special tax treatments especially with regard to income tax, which is applicable to foreigners working in a representative office. Triple i’s knowledge of the business and tax systems of the Philippines can help your company quickly establish a representative office in the Philippines, while maximizing your company’s earned incentives.