Title: A Comprehensive Guide on Starting a Foundation in the Philippines: A Complete Guide
Establishing a non-profit organization or a foundation is a noble endeavor toward helping the community in the Philippines. Nevertheless, the process demands a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article outlines exactly how you can register a non-profit in the country.The First Step: Identifying Your Goal
Prior to starting the paperwork, you must articulate 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 group must have a specific fund to sustain its projects. Defining your vision early helps ensure that your articles of incorporation match your long-term intentions.
2. Name Reservation and SEC Registration
The primary hurdle is filing with the Securities and Exchange Commission (SEC). It is necessary to verify that your proposed name is unique.
Name Reservation: Use the SEC electronic system to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Minimum Capital Requirement: For registered foundations in the Philippines, a base capital of PHP 1,000,000 is typically how to start a foundation philippines required to be held in a bank.
Step 3: Drafting Your Paperwork
To move forward, you have to how to start a foundation philippines compile the following records:
Founding Charter: This file lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These regulations manage the internal how to start a foundation philippines operations of the foundation, including things like how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A sworn statement verifying that the required funds have been deposited.
Step 4: Registering with the BIR
Upon obtaining your SEC certificate, the next vital step in the foundation setup process is registering with the Bureau of Internal Revenue (BIR). The entity must obtain a Tax Identification Number (TIN), set up its accounting records, and request tax-exempt status.
Remember that being a non-profit does not instantly mean you are exempt from all taxes. You must formally petition for a Certificate of Tax Exemption from the BIR to be cleared how to start a foundation philippines from income tax on funding.
Step 5: Local Governance and Social Welfare
Your foundation must also get a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Moreover, if your 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.
Summary
Learning how to establish a non-profit in the Philippines is a thorough process, but it paves the way how to start a foundation philippines for lasting change. By completing these requirements, you ensure your foundation is properly structured and equipped to assist the Filipino people.