A Branch Office registering and
doing business in the Philippines must obtain a license to do so
from the SEC upon registration. The foreign corporation's head
office must prove its legal existence in its country of origin, its
financial soundness, and its authorization to set up a branch in
the Philippines. The Branch will need to appoint a resident agent
in the Philippines who will be in charge of receiving summons and
legal processes. This allows the SEC and other entities to obtain
jurisdiction over the foreign company.
Starting and setting up a branch normally involves remitting US$200,000 as capital investment when registering a company with the SEC in the Philippines. Branch offices engaged in activities involving advance technology, or that employ at least 50 direct employees, are required to inwardly remit a reduced amount of US$100,000 as assigned capital. Export-oriented branches are not subject to minimum assigned capitalization requirements. Special rules apply for certain types of branch operations.
If the Branch office in the Philippines will be exporting physical goods or services or generating revenue from abroad amounting to more than 60% of its gross sales the branch office can be fully foreign owned, as it is considered an Export Enterprise under the Foreign Investments Act. The branch can be registered with as little as P5,000 paid up capital. However, most banks require P25,000 - P50,000 to open a corporate bank account.
Branch Office Registration Requirements
If a Branch Office will be established in the Philippines, the company will need to appoint/designate its resident agent in the Philippines and indicate the name of said resident agent in the above Certificate of Board Resolution. If the resident agent is a foreigner, he/she should be the holder of a valid Philippine visa which, at the time of its issuance, entitled the holder thereof to stay in the Philippines continuously for at least one year. The designated Resident Agent can only open the pre-registration account (where assigned capital has to be remitted/deposited directly) after he/she shall have received his appointment as resident agent.
K&C provides full business registration services to obtain all the permits and licenses needed to legally start and do business in the Philippines. We have registered over 500 foreign companies in the Philippines in the last six years, specifically call centers, BPOs and Web development companies. Our team of corporate, labor and tax lawyers will meet and discuss your options and requirements for opening your new business in the Philippines, draft articles of incorporations and by-laws, then process all documents.