Starting a business in the Philippines requires a clear understanding of the corporate frameworks available. Many investors often search for the term limited liability company philippines or llc philippines assuming to find a direct equivalent to the American LLC model. However , the Philippine corporate landscape functions somewhat differently.
Defining the Business Structure in the Philippines
In the United States, a limited liability company is a flexible entity that merges the fiscal benefits of a partnership with the limited liability corporation protection of a major firm. In the Philippines, the phrase limited liability corporation philippines essentially refers to a Domestic Corporation.
Under the Revised Corporation Code, stakeholders can create a corporation where their personal assets are insulated from the liabilities of the entity. Whether you call it a limited liability company or a corporation, the primary goal remains the same: limiting risk.
Why Choose a Corporate Structure?
Choosing a registered corporation in the Philippines provides several pros:
Asset Protection : The main feature of a limited liability corporation is that shareholders are only responsible up to the amount of their capital investment.
Perpetual Existence : A corporation remains to exist regardless of changes in shareholders .
Ease of Capital Raising : It is simpler to secure capital by issuing shares to venture capitalists.
Credibility : Having "Inc." or "Corp." added to your brand improves reputation with suppliers .
Small Business Solutions
For those particularly looking for a limited liability company philippines setup as a solo founder, the One Person Corporation (OPC) is the most relevant match. Introduced recently, the OPC permits a single person limited liability corporation to enjoy the status of a limited liability corporation without requiring a board of five directors.
Requirements for Registration
To register your company with the Securities and Exchange Commission (SEC), you will need llc philippines the following:
Foundational Documents: Defining the purpose and framework of the business.
Bylaws : The governing limited liability corporation rules for operations.
Minimum Capital : While most industries don't require a minimum paid-up capital, limited liability company specific sectors nevertheless do.
Treasurer’s Affidavit : To confirm that the starting funds are deposited in trust.
Conclusion: Navigating Your Options
While the literal terminology of a limited liability company might differ from Western standards , the limited liability corporation philippines model is well-established. By registering a corporation or an OPC, you ensure that your business journey is protected from unforeseen legal burdens.
In summary limited liability company , whether you are searching for an llc philippines or a standard limited liability company, the secret is knowing the Philippine regulations . Always speak with a consultant to ensure compliance with all government mandates.