Creating a non-profit organization or a foundation is an impactful way toward addressing societal issues in the Philippines. Regardless, the process necessitates a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other related agencies. This article outlines exactly how you can register a non-profit in the country.
1. Define Your Mission and Vision
Before beginning the paperwork, you must determine the primary mission 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 entity must have a specific fund to sustain its projects. Having a solid mission guarantees that your founding documents reflect your long-term objectives.
The SEC Registration Process
The initial formal requirement is registering with the Securities and Exchange Commission (SEC). You must confirm that your chosen name is available.
Reserving the Name: Use the SEC online portal to hold your name. Make sure the name contains terms like "Foundation" or "Inc." as required by law.
Initial Funding: For registered foundations in the Philippines, a minimum initial contribution of one million pesos is standardly required to be deposited in a bank.
Documentation Requirements
To proceed, you will need how to start a foundation philippines the following records:
Articles of Incorporation: This file lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These rules manage how to start a foundation philippines the internal operations of the foundation, such as how board meetings are held and how leaders how to start a foundation philippines are elected.
Treasurer’s Affidavit: A legal document confirming that the minimum funds have been received.
Taxation and the BIR
After receiving your SEC certificate, the next important step in how to start a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). The organization must secure a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Keep in mind that non-profit status does not automatically mean you are tax-free. You must specifically apply for a Certificate of Tax Exemption from the BIR to minimize income tax on donations and grants.
Final Compliance Steps
Your foundation must likewise get a Mayor’s Permit or Business Permit from the city hall how to start a foundation philippines where your headquarters resides.
Furthermore, 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
Mastering how to start a foundation Philippines is a rigorous process, but it creates the foundation for meaningful impact. By completing these requirements, you help ensure your foundation is legally compliant and prepared to help how to start a foundation philippines the public.