Starting a Foundation in the Philippines is somehow similar to start a profitable generating business. A Foundation is a type of non profitable organization that should donate money or goods for charitable reasons.
While this corporation enjoys some tax breaks, legal procedures must be followed during the set up of this structure. Articles of Incorporation must be provided, paid up capital must be deposited into a bank account of the company and local and national permits must be secured.
The foundation must be initially registered with the Securities & Exchange Commission (SEC), followed by the the registration with the Bureau of Internal Revenue (BIR) and the Philippine Concil for NGO Certification.
Furthermore, if you are looking to start a foundation or you are looking into establishing one, it is you should be aware of the SEC new requirements.
In accordance with the newly efficient processing regulation implemented by the Philippine government, the Securities and Exchange Commission (SEC) issued a modified Memorandum Circular of its Section 4 of MC no. 8-2006.
During the period of time preceding the modified memorandum, the SEC requires all registered foundations to supplicate sworn statements (SS) of its president and treasurer of the sources, amount and application of planned program/activities funds, both ongoing and accomplished, and the certificate of existence of program/ activity (COEP), on top of its GIS and AFS.
On the other hand, MC 15-2016 states that the requirements to be submitted to the SS and COEP by the registered foundations are only to be the following:
- Those receiving funds from any Philippine government agencies and instrumentalities; or,
- Those receiving donations/ grants/ contributions amounting to at least P500,000 in one or aggregate transaction per donor/ grantor/ contributor.
Foundations that do not fall under these categories can give forth requirements provided they comply certifications with the SS & COEP stating that:
- They have not received government funds nor received donations/ grants/ contributions within the said threshold for their operations; and,
- There is no pending action or proceeding before any Court involving an intra-corporate dispute and claims by any person against the foundation, its trustees/ and or corporate officers.
If you would like us to walk you through the legal process and register a foundation with the SEC, BIR and the Philippine Concil for NGO Certification, do not hesitate to contact us. With over 20 foundations registered in the Philippines, our business consultants are ready to assist you.
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