Title: A Comprehensive Guide on Starting a Foundation in the Philippines: What You Need to Know
Creating a non-profit organization or a foundation is a noble endeavor toward addressing societal issues in the Philippines. However, the process demands a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article details exactly the process of starting a foundation in the Philippines.The First Step: Identifying Your Goal
Before beginning the paperwork, you must determine the core purpose of your foundation. Will you be addressing healthcare?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a specific fund to support its projects. Having a solid mission ensures that your founding documents match your long-term intentions.
Step 2: Securing Your Name and Legal Status
The primary hurdle is filing with the Securities and Exchange Commission (SEC). The founders need to confirm that your chosen name is unique.
Reserving the Name: Use the SEC online portal to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as required by law.
Minimum Capital Requirement: For recognized foundations in the how to start a foundation philippines Philippines, a base capital of one million pesos is standardly required to be held in a bank.
Step 3: Drafting Your Paperwork
To proceed, you must prepare the following documents:
Articles of Incorporation: This file details the founders' identities, the organization's goal, and the principal office address.
Bylaws: These regulations manage the internal operations of the foundation, including how board meetings are conducted and how leaders are elected.
Treasurer’s Affidavit: A legal document confirming that the minimum funds have been deposited.
Step 4: Registering with the BIR
Once you have your SEC certificate, the next important step in how to start a foundation Philippines is visiting the Bureau of Internal Revenue (BIR). The entity must apply for a Tax Identification Number (TIN), set up its accounting records, and request tax-exempt status.
Keep in mind that being a non-profit does not automatically mean you how to start a foundation philippines are exempt from all taxes. You must actively seek for a tax-exempt ruling from the BIR to minimize income tax on funding.
Final Compliance Steps
The new entity must also get a Mayor’s Permit or Business Permit from the municipality where your office is located.
Furthermore, if your foundation offers how to start a foundation philippines social welfare services, you ought to seek accreditation from the how to start a foundation philippines Department of Social Welfare and Development (DSWD). This accreditation is critical for legitimacy and allows you to conduct donation drives legally.
Summary
Learning how to establish a non-profit in the Philippines is a rigorous process, but it sets the stage for meaningful how to start a foundation philippines impact. By following these steps, you guarantee your foundation is legally compliant and equipped to assist the Filipino people.