Creating a non-profit organization or a foundation is a noble endeavor toward addressing societal issues in the Philippines. Nevertheless, the process demands a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article outlines exactly how you can register a non-profit in the country.
The First Step: Identifying Your Goal
Prior to starting the paperwork, you must articulate the main objective of your foundation. Are you focusing on education?
In the Philippines, foundations are usually classified as non-stock, non-profit corporations. To be recognized as a foundation, your entity must have a dedicated fund to fund its projects. Setting a clear goal guarantees that your bylaws align with your long-term aims.
Step 2: Securing Your Name and Legal Status
The first legal step is applying with the Securities and Exchange Commission (SEC). The founders need to verify that your proposed name is not already taken.
Name Reservation: Use the SEC electronic system to hold your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Initial Funding: For registered foundations in the Philippines, a base capital of PHP 1,000,000 is usually required to be held in a bank.
Step 3: Drafting Your Paperwork
To move forward, you must prepare the following documents:
Founding Charter: This document outlines the names of the incorporators, the purpose of the foundation, and the primary location.
Bylaws: how to start a foundation philippines These guidelines govern the daily activities of the foundation, including how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement stating that the initial funds have been contributed.
Step 4: Registering with the BIR
Once you have your SEC certificate, the next vital step in how to start a foundation Philippines is registering with the Bureau of Internal Revenue (BIR). Your foundation must obtain a Tax Identification Number (TIN), set up its accounting records, and request tax-exempt status.
Remember that being a non-profit does not instantly mean you are exempt from all taxes. You must formally how to start a foundation philippines petition for a tax-exempt ruling from the BIR to be cleared from income tax on funding.
Step 5: how to start a foundation philippines Local Governance and Social Welfare
The organization must also obtain a Mayor’s Permit or Business Permit from the municipality where your office is located.
Additionally, if how to start a foundation philippines your foundation offers social welfare services, you must seek accreditation from the Department of Social Welfare and Development (DSWD). This accreditation is essential for how to start a foundation philippines trust and allows you to conduct public solicitations formally.
Conclusion
Understanding how to establish a non-profit in the Philippines is a detailed process, but it sets the stage for social progress. By following these steps, you guarantee your foundation is formally recognized and ready to serve the Filipino people.