Our economy is thriving and expanding, despite our struggles with the pandemic, due to the efforts of many business entities. As a matter of fact, the Securities and Exchange Commission (SEC) recorded a total of 736,647 registered active corporations and partnerships in the country, as of December 31, 2021.  With this figure, 429,818 entities are stock corporations. 

The Revised Corporation Code (Republic Act No. 11232) passed last 2019 caused the trend of incorporation to go uphill due to its salient features that aim to reduce limitations and make the registration process easier. It’s about high time to ride this trend especially since the economy is expected to recover soon from the effects of COVID-19.

But, you must keep in mind that a corporation’s success will depend on how well you launch it. Everything must be legally registered to avoid problems in the future. Here are the government agencies involved and the steps you need to know to register a corporation in the Philippines:

1. Securities and Exchange Commission (SEC)

Initially, you have to reserve and register your business name to SEC. The best part is, you can do this online. Once approved, you will have to draft the following documents:

– Articles of Incorporation;

– By-Laws; 

– Treasurer’s Affidavit; and

– *Joint affidavit of two (2) incorporators (if applicable)

The whole SEC application process should only take 2 weeks up to 4 weeks, as long as all the documents are complete, and no issues have been found with your business name or other parts of your application.

2. Local Government Units (LGU) where your business is located

Once you have secured your SEC registration, the next thing you have to do is to obtain a barangay permit from the LGU – Barangay where you decided to register your company. This will then be part of the documents needed to acquire a business permit from your LGU – City/Municipality. 

This step should not take more than 1 week as long as all the necessary documents are provided.

3. Bureau of Internal Revenue (BIR)

Of course, to be a legal corporation in the Philippines, registering to BIR is a must! 

Similar to an individual, a corporation is a legal entity and has to pay its taxes. To get your Tax Identification Number (TIN), submit all the documents and permits you’ve gathered thus far along with the forms that you need to accomplish to the Regional District Office (RDO) where your company is located. 

By the end of this process, you should also have your Certificate of Registration (COR), Books of Accounts, Authority to Print (ATP), and your Official Receipts (OR) or Sales Invoice (SI).

Normally, it takes 2 weeks from the day you submitted the required documents and forms before you receive most of your registration documents. Your OR or SI may take more time depending on the BIR printer or the authorized printer.

4. Other Government Agencies

Finally, you have to register with the following government agencies as an employer to adhere to your obligations to your employees:

• Social Security System (SSS)
• Philippine Health Insurance Corporation (PhilHealth)
• Home Development Mutual Fund (Pag-IBIG)

The government has been putting a lot of effort into making the corporate registration process easier. However, this can still get confusing, especially for aspiring entrepreneurs like you. Instead of going in circles trying to do all these by yourself, let the professionals handle these processes so you can focus on what’s important, which is growing your company.