There are their types of the Philippines company formation, which are solo, joint and limited etc. Subject to foreign investment could set up company, branch, subsidiary or representative office in the Philippines. The minimum capital of the foreign company is US dollar 200,000 / representative office is US dollar 30,000 / joint company is Philippine dollar 500,000. The withholding tax is 30%, besides tax of invest in Subic Bay Freeport and the economic special zone can be deducted. Foreign investment has to report by the Securities and Exchange Commission (SEC), a potential investor can consult relevant issues if needed.
Foreign investments in the Philippines
1. Joint company: Foreigner and residents can set up a joint company acceding to certain holding rates. In which, there are 2 kinds as if resident holds to 60% and foreigner holds 40% called the local company, vice verse foreign company. According to relevant laws, no less than 5 people and maximum 15 people be shareholders, board member normally 5 - 15 people and each director at least holds 1 share. Majority shareholders and directors are residents. Generally, there is a general manager, a resident accounting office and a resident as secretary.
2. Subsidiary: Foreigner invests a subsidiary has to have 1 resident as a director who holds 1 share. Besides, the negative list has to be attention, and minimum paid capital is US dollar 200,000 and pays before register.
3. Branch: Sort of an extension of foreign company whom based in Philippine. it has to apply for permits from SEC. The branch has to appoint an agent to deal with tax and accounting issues. Minimum registered capital is US dollar 200,000. However, if a company dealing with high tech industries or has a minimum of 50 employees, the registered capital can decrease to US dollar 100,000.
4. Representative office: Directly appointed by the head company, the office only can contact, promote products and quality control etc. No income allowed for the office.
Inter Area with years of experiences of setting up an actual company in the Philippines. We aim to chase best services for our clients from setting up to accounting services, Visa applications etc. Our clients can gain updated information at the first beginning, meanwhile, clients can take good care of its own business and developments.