Creating a non-profit organization or a foundation is an impactful way toward driving social change in the Philippines. Nevertheless, the process necessitates a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other governing agencies. This article explains exactly how you can register a non-profit in the country.
1. Define Your Mission and Vision
Before diving into the paperwork, you must clearly define the main objective of your foundation. Will you be addressing poverty alleviation?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a particular fund to fund its projects. Defining your vision early ensures that your bylaws align with your long-term objectives.
2. Name Reservation and SEC Registration
The first legal step is registering with the Securities and Exchange Commission (SEC). The founders need to confirm that your proposed name is unique.
Reserving the Name: Use the SEC online portal to reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as mandated by law.
Minimum Capital Requirement: For registered foundations in the Philippines, a minimum initial contribution of PHP 1,000,000 is typically required to be maintained in a bank.
Documentation Requirements
To proceed, you how to start a foundation philippines must prepare the following documents:
Articles of Incorporation: This file details the names of the incorporators, the purpose of the foundation, and the primary location.
Operating Rules: These guidelines govern the daily activities of the foundation, including things like how board meetings are conducted and how officers are elected.
Treasurer’s Affidavit: A legal document verifying that the required funds have been received.
4. Obtaining a Tax Identification Number (TIN)
Upon obtaining your SEC certificate, the next vital step in how to start a foundation Philippines is how to start a foundation philippines visiting the Bureau of Internal Revenue (BIR). The entity must obtain a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Note that being a non-profit does not instantly mean you are exempt from all taxes. You must specifically apply for a tax-exempt ruling from the BIR to avoid income tax on funding.
Final Compliance Steps
Your foundation must likewise obtain a Mayor’s how to start a foundation philippines Permit or Business Permit from the municipality where your headquarters resides.
Furthermore, if your foundation delivers social welfare services, you ought to register with the how to start a foundation philippines Department of Social Welfare and Development (DSWD). This step is vital for trust and allows you to perform donation drives lawfully.
Summary
Understanding how to establish how to start a foundation philippines a non-profit in the Philippines is a rigorous process, but it creates the foundation for lasting change. By following these steps, you guarantee your foundation is formally recognized and prepared to help the public.