Business Formation in the Philippines

Business formation begins with the entity decision. The right structure affects ownership, liability, capital, governance, taxes, registration and the ability to raise funds or admit investors.

Start with these decisions

• Will the business operate as a sole proprietorship, partnership, One Person Corporation or ordinary corporation?
• Will any owner be foreign, and does the activity have an equity restriction?
• Who will control the board, act as officers and sign for the company?
• What capital, address, licenses and registrations are required?

Formation pathway

1. Define the activity, founders and intended ownership.
2. Compare suitable entity forms and liability consequences.
3. Check foreign-ownership and minimum-capital rules.
4. Prepare the Articles of Incorporation, bylaws and initial governance decisions.
5. Complete SEC registration, then coordinate BIR, LGU and sector-specific registrations.
6. Open statutory books, establish approval controls and calendar recurring filings.

Priority guides

• Types of Business Entities in the Philippines
• How to Register a Domestic Corporation
• One Person Corporation Guide
• Branch Office versus Subsidiary
• Articles of Incorporation and Corporate Bylaws

Next step: Record the proposed activity, owners, citizenship, capital and management structure before choosing an entity.