Creating a non-profit organization or a foundation is an impactful way toward addressing societal issues in the Philippines. Regardless, the process necessitates a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other related agencies. This article details exactly how you can register a non-profit in the country.
The First Step: Identifying Your Goal
Before beginning the paperwork, you must determine the main objective of your foundation. Will you be addressing environmental conservation?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your entity must have a specific fund to sustain its projects. Having a solid mission helps ensure that your founding documents reflect your long-term objectives.
The SEC Registration Process
The initial formal requirement is filing with the Securities and Exchange Commission (SEC). You must confirm that your chosen name is available.
Reserving the Name: Use the SEC online portal to hold your name. Make sure the name contains terms like "Foundation" or "Inc." as required by law.
Initial Funding: For registered foundations in the Philippines, a minimum initial contribution of one million pesos is standardly required to how to start a foundation philippines be deposited in a bank.
Documentation Requirements
To proceed, you will need the following records:
Articles of Incorporation: This file lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These rules manage the internal operations of the foundation, such as how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A legal document confirming that the minimum funds have been received.
Taxation and the BIR
After receiving your SEC certificate, the next important step in how to start a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). The organization must secure a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Keep in mind that non-profit status does not automatically mean you are exempt from all taxes. You must actively seek for a Certificate of Tax Exemption from how to start a foundation philippines the BIR to minimize income tax on donations and grants.
Final Compliance Steps
Your foundation must likewise get a Mayor’s Permit or Business Permit from the city hall where your headquarters resides.
Furthermore, if your how to start a foundation philippines foundation delivers social welfare activities, you should register with the Department of Social Welfare and Development (DSWD). This step is vital for legitimacy and allows you to manage fundraising activities lawfully.
Final how to start a foundation philippines Thoughts
Mastering how to start a foundation Philippines is a rigorous process, but it creates the foundation how to start a foundation philippines for meaningful impact. By completing these requirements, you help ensure your foundation is legally compliant and prepared to help the public.