How To Register A Charity Organization In The Philippines

How to Register a Non-stock Non-profit in the Philippines?

By: Taxation and Bookkeeping Center Philippines

non-stock non-profit Philippines You may have a charitable mind and a large heart having in mind the general welfare of the less privileged and the needy, or you may just want to operate a non-stock, non-profit entity for a reason or another, this article could be of help.

Non-stock and non-profit corporation in the Philippines is one who operates for a not-for-profit undertaking such equally charitable institutions, associations, foundations, wellness organizations, ecology activities, and others in line. It does not issue shares of stocks to stockholders but rather admit members based on established rules in its Past-laws. Its operational funds could come from donations, members contributions, and some gain from fund raising activities. For tax purposes, it could exist exempted from income taxation and value added tax on sales based on BIR Ruling issued. It is nevertheless field of study to withholding taxes on its income payments and compensation, and could be passed on 12% value added tax on its purchases from VAT-registered suppliers.

Details of incorporators

To annals a non-stock, non-turn a profit corporation, y'all need to have the following to beginning with:

At least five (5) incorporators, bulk of them must be residents in the Philippines;
Complete accost of each incorporator;
BIR Taxation identification number (Tin can) of each incorporator;
Contribution of incorporators and members;

Based on the above details, yous may at present proceed with the documentation. Securities and Exchange Committee (SEC) in the Philippines would require the post-obit documentary requirements:

Bones SEC Requirements

Name verification slip of the company name to be used. This should be reserved manually with the Securities & Exchange Commission (SEC) for minimal fees – P40.00 for every 30 days up to a maximum of 90 days subject to renewal or online through the SEC -Register;
Articles of Incorporation and By-laws;
Joint affidavit of 2 (2) incorporators undertaking to change proper noun;
Listing of members, as certified by the corporate secretary, unless already stated in the Articles of Incorporation; and,
Listing of names of contributors or donors and the amounts contributed or donated, as certified by the treasurer.

Additional SEC Requirements

For Foundation – Notarized document of depository financial institution deposit of the contribution of non less than P1M along with statement of willingness to allow SEC to conduct an inspect;
For Religious Corporation – Refer to Setions 109-116 of the Corporation Lawmaking of the Philippines, and an affirmation of affirmation or verification by the master priest, rabbi, minister or presiding elderberry;
For Federations – Certified listing of member-associations past Corporate Secretary or President;
For Condominium corporations or associations -Main Deed with principal entry of the Register of Deeds and certification that in that location is no other existing similar condominium association inside the condominium project.

SEC in the Philippines has a set of express forms for some ready to fill-out SEC registration forms. Alternatively, you may have your own customized forms and documents that is in accordance with the format of SEC in relation to the provisions of the Corporation Lawmaking of the Philippines applicable to non-stock, non-profit corporations in the Philippines. Y'all may need an assistance of a lawyer or somebody with better appreciation of the requirements for registering a not-stock, not-profit corporation in the Philippines.

SEC awarding and approval

Initial registration papers carefully prepared for the purpose will undergo initial evaluation of the SEC, and finding the same in order volition be assessed filing and other fees based on the proposed capitalization. Payment of the filing and other fees marks the formal filing of the application and normal approval procedures would immediately follow. Approval usually comes in a couple of days to not more than ten (x) days.

Taxation Authorisation Registration

SEC will assign a revenue enhancement identification number (TIN) upon release of the Certificate of Incorporation in the Philippines and such Tin shall be formally registered with the Bureau of Internal Revenue (BIR). Certain registration fees and taxes will be paid and other registrations for books of accounts, and official receipts or invoices will follow. For taxation exemptions of non-stock non-profit corporation in the Philippines, you lot need to secure BIR ruling with the tax authorization with the Revenue District Role (RDO) of registration.

Business Permits & Licenses

For the legality of its local operations, business organisation permit has to be secured with the local authorities unit of business location. Certain fees and other registrations are too required such as customs tax certificate, barangay clearance, fire permit, occupancy permit, and the likes.

Employee safeguards registrations

Employer registration with the Social Security System (SSS), Philippine health Insurance Corporation (Philhealth), and Home Development Mutual Fund (HDMF) is likewise mandatory and volition proceed independent of the in a higher place.

Complete Processing Timetable

With the improved processing organisation of the government agencies, consummate processing of the above volition take three (three) to four (four) weeks from filing with the Securities and Exchange Commission. We advise you secure the services of professionals to assist you in the complete registration of your Philippine Visitor that yous may be able to simply concentrate on operational matters.

Disclaimer: This article is for general conceptual guidance only and is not a substitute for an expert opinion. Delight consult your preferred revenue enhancement and/or legal consultant for the specific details applicable to your circumstances.For comments, yous may please transport mail at info@taxacctgcenter.org.)

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