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.
*Specific requirement must be authenticated in the Philippine Embassy/Consulate of the parent company’s host country.
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.
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.