Establishing a non-profit organization or a foundation is an impactful way toward addressing societal issues in the Philippines. Regardless, 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 the process of starting a foundation in the Philippines.
The First Step: Identifying Your Goal
Before beginning the paperwork, you must determine the main objective of your foundation. Are you focusing on education?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a particular fund to support its projects. Setting a clear goal ensures that your bylaws match your long-term intentions.
2. Name Reservation and SEC Registration
The primary hurdle is registering with the Securities and Exchange Commission (SEC). You must confirm that your desired name is unique.
Name Reservation: Use the SEC electronic system to reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For registered foundations in the Philippines, a starting fund of PHP 1,000,000 is standardly required to be deposited in a bank.
3. Preparing Essential Documents
To proceed, you have to compile the following materials:
Articles of Incorporation: This document outlines the names of the incorporators, the purpose of the foundation, and the primary location.
Bylaws: These regulations govern the management of the foundation, including things like how board meetings are conducted and how officers are elected.
Treasurer’s Affidavit: A legal document confirming that the required funds have been received.
Taxation and the BIR
Once you have your SEC certificate, the next crucial step in how to start a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). The entity must obtain a Tax Identification Number (TIN), register its books how to start a foundation philippines of accounts, and request tax-exempt status.
Keep in mind that non-profit status does not automatically mean you are exempt from all taxes. You must specifically apply for a tax-exempt ruling from the BIR to minimize income tax on contributions.
Final Compliance Steps
Your foundation must also get a Mayor’s Permit or Business Permit from the municipality where your how to start a foundation philippines headquarters resides.
Moreover, if your foundation offers social welfare activities, you ought to register with the Department of Social Welfare and Development (DSWD). DSWD registration is vital for legitimacy and allows you to perform public solicitations legally.
Summary
Understanding how to establish how to start a foundation philippines a non-profit in the Philippines is a how to start a foundation philippines rigorous process, but it sets the stage for meaningful impact. By following these steps, you help ensure your foundation is properly structured and ready to how to start a foundation philippines serve the Filipino people.