Benefits of Company Incorporation
Specialized companies offer company incorporation services to both foreign and domestic entities looking to establish a Philippine company. They provide full support from identifying the right legal entity for you to set up in the Philippines and drafting the Articles of Organization (OO), by-laws, arranging for capitalization, and naming your corporate officers (the Board of Directors). Foreign corporations can enjoy many benefits once they have been granted company incorporation in the Philippines. First, they can now open new branches and offices in the Philippines without any problem. Second, they will not need to spend additional resources on setting up office equipment and employing personnel from their own country.
Another benefit is that foreign investors are able to avoid the risk of having a Philippine-based company. The Bureau of Philippine Overseas Affairs is the Philippine government’s regulatory body. The statutory framework of the law provides clear methods of company registration and structuring for overseas direct investment. Businesses that are registered in the Philippines can enjoy a variety of financial incentives. These include low taxes and exemptions on import duties under the Manufactured Goods Sales Act of the Philippines. A majority (if not all) of the Philippines’ foreign banks offer account services to Filipino banks. However, setting up a bank account in the Philippines is a tedious process. The following steps must be completed by a foreign company: obtain legal assistance from a company incorporation lawyer; conduct due diligence research on the company’s financial health; request assistance from the bank’s commercial banking arm; and finally, register the bank account.
It is crucial that foreigners establish separate legal entities once they have been granted incorporate a Singapore company. This is because, unlike their domestic counterparts, a company resident in the Philippines will be treated just like any other company with separate shareholders and creditors. Foreigners will not enjoy the same benefits as their domestic counterparts. A separate legal entity has the advantage that foreigners won’t be subject to double taxation even though they own or control more then 50% of a company.
Besides company registration in the Philippines, an individual also needs to prepare various documents required for its safe transference to the new domicile. These documents include the nominee account holder’s declaration that he or she is the company agent for the transference of powers; certificate of financial services signed by the nominee agent and his duly designated officer of finance; and a Power of Attorney form that authorizes the appointed officer to perform company functions. Additional legal fees may be required to register a company and conduct related transactions. A company incorporation attorney can help you save money on company registration costs. Attorneys can prepare all necessary documents for the company and only pay a fraction of the legal fees.
Another advantage of company incorporation in Philippines is the availability of financial resources. Despite the new company registration procedures the funds available to transfer ownership are often sufficient. Many business groups actually find them adequate. Many firms have been able to obtain state-of-the art company incorporation services through a Manila company incorporation provider. These firms can help with many other issues related to company registration, as well as company registration. They can help with visa documentation and registrations as well as financial statements and other paperwork that is required for international company formation.
It is difficult to underrate the importance of company incorporation in the Philippines. It not only simplifies administration and gives directors and officers more accountability, but it also helps in obtaining preferred foreign investment. Because of the many government incentives, foreign investors may be attracted by a Philippines-based business. The company director and shareholders don’t have to comply with the same burdensome and costly laws and regulations as if they had to register the company in their own names. This creates both legal and economic benefits for the company, and Filipino citizens.