PHILIPPINES REPRESENTATIVE OFFICE FORMATION

Philippine Representative Office Establishment Guide

 

The representative office in the Philippines can act as a representative office so that foreign-owned corporations organized and established in accordance with foreign laws can take charge of liaison in the Philippines. Representative offices cannot generate income in the Philippines, and all funds must come from a foreign corporation (parent company). Its main purpose is to maintain direct contact with the parent company's customers, enhance communication within the market and promote marketing of its products. Representative offices may also be used to provide customer service and support for the Company and its products.

 

Requirements for establishment:

 

1. Copy of shareholder/director's passport and English abstract 

2. Form F-104

3. Representative office capital of US$30,000 (Prepare remittance confirmation after payment)

4. Confirmation of company name availability from SEC (Securities and Exchange Commission)

5. Embassy notarization of the resolution of the board of directors for the establishment and establishment of the Philippine representative office

6. Accounting audit report of parent company *If there is no audit report, legal basis and confirmation

7. Notarized translation of the parent company's articles of incorporation and by-laws into English and notarized fact confirmation

8. Appointment of an authorized representative of the Philippine representative office

9. Approval of remittance of minimum paid-in capital to local bank

10. Obtaining licenses and permits from government offices (if applicable)

** All of the above documents must be provided in English or translated into English must be notarized.

** The above main documents must be notarized by the Philippine Embassy.

 

 

In order of progress:

 

1. Payment of establishment fee and government registration fee

2. Registered the company name with the SEC and obtained permission to use it

3. Remittance of the minimum paid-in capital to a non-resident account at a local bank

4. Appointment of an authorized representative for the Philippines representative office

5. Registered with the government commercial registry

6. BIR registration

7. Registration with the competent authority when hiring employees 

8. Acquisition of business license and business operator from the mayor of the competent city

 

The representative office in the Philippines can serve as a quality control center for export products and is suitable for companies that will operate customer service and marketing centers in the Philippines. In addition, the representative office is suitable for pharmaceutical and cosmetic companies that want to register their products before negotiating with distributors in the Philippines, and there is no income tax payment obligation as sales and business activities are prohibited in the Philippines.

 

Business Expenses:

 

1. Government registration, registration and related fees: US$1,000

2. Business processing fee: US$6,000

 

Total: US$7,000

(cost US$7,000 + capital US$30,000 =   Minimum reserve US$37,000)

 

** When establishing a representative office in the Philippines, the office must be leased separately (approximately 2,000-4,000 pesos per month for the Soho office)

** The Philippines representative office cannot hire more than 30 employees due to the nature of the representative office.

 

Estimated lead time: 4-6 months

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