Establishing a business in the Philippines necessitates a clear understanding of the corporate frameworks available. Many business owners often ask about the term limited liability company philippines or llc philippines assuming to find a direct match to the American LLC model. Nevertheless , the Philippine legal system functions somewhat differently.
Defining the Business Structure in the Philippines
In the United States, a limited liability company is a flexible entity that blends the taxation of a partnership with the limited liability corporation protection of a standard firm. In the Philippines, the phrase limited liability corporation philippines technically refers to a Domestic Corporation.
Under the Revised Corporation Code, founders can create a corporation where their personal assets are shielded from the obligations of the entity. Whether you call it a limited liability company or a corporation, the primary goal remains the same: minimizing risk.
Why Choose a Corporate Structure?
Selecting a corporate structure in the Philippines grants several pros:
Asset Protection : The primary feature of a limited liability corporation is that shareholders are only responsible up to the extent of their capital contribution .
Perpetual Existence : A corporation persists to exist regardless of changes in ownership .
Funding Growth: It limited liability corporation philippines is more efficient to raise funds by issuing shares to venture capitalists.
Credibility : Having "Inc." or "Corp." attached to your name enhances trust with banks .
Small Business Solutions
For those specifically looking llc philippines for a limited liability company philippines experience as a single founder, the One Person Corporation (OPC) is the most relevant match. Introduced recently, the OPC permits a single person to enjoy the status of a limited liability corporation without requiring a board of multiple directors.
How to Get Started
To establish your entity with the Securities llc philippines and Exchange Commission (SEC), you must prepare the following:
Articles of Incorporation : Outlining the purpose and framework of the business.
Bylaws : The internal rules for operations.
Minimum Capital : While many industries no longer require a set paid-up capital, certain sectors nevertheless do.
Treasurer’s Affidavit limited liability corporation philippines : To verify that the initial funds are deposited in trust.
Final Thoughts
While the literal terminology of a limited liability company might differ from Western definitions, the limited liability corporation philippines model is well-established. By forming a corporation or an OPC, you secure that your business journey is protected from unforeseen financial burdens.
In summary , whether you are limited liability company searching for an llc philippines or a standard limited liability company, the secret is knowing the Philippine regulations . It is wise to seek advice from a professional to ensure adherence with all SEC requirements .