Registration of a Representative Office in the Philippines
One of the business structures that a foreign corporation can establish in the Philippines is a Representative Office. This type of company formation can only undertake information dissemination, promote the parent company’s products, and provide quality control of the products. It cannot generate revenue in the Philippines and can only deal with the clients of its parent company. One of the requirements in securing a license to do business as a representative office is a proof of initial inward remittance in the amount of US$30,000.00. Every year thereafter, the head office must remit the same amount of US$30,000.00 to cover operating expenses of the representative office.
Aside from the proof of inward remittance, the other requirements for the registration of a representative office in the Philippines are as follows:
- SEC Form F-104;
- Name verification slip;
- Registration Data Sheet;
- Authenticated copy of the board resolution authorizing the establishment of the office, designating the resident agent, and stipulating that in the absence of the agent summons and other legal processes may be served to the SEC;
- Authenticated Financial Statements of a date not exceeding one (1) year immediately prior to the application certified by an independent CPA from the home country;
- Affidavit of solvency;
- Authenticated articles of incorporation; and
- Resident Agent’s acceptance of appointment (this is not necessary if the resident agent is the one who will sign the application form).
After the SEC issues the Certificate of Registration, the registration with the following government agencies must be done chronologically:
- BIR ;
- PhilHealth; and
- Mayor’s Permit.