Establishing a non-profit organization or a foundation is a noble endeavor toward addressing societal issues in the Philippines. Regardless, the process demands a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other related agencies. This article outlines exactly the process of starting a foundation in the Philippines.
Step 1: Establishing Your Purpose
Before diving into the paperwork, you must determine 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 qualify as a foundation, your organization must have a specific fund to fund its projects. Having a solid mission ensures that your founding documents align with your long-term objectives.
2. Name Reservation and SEC Registration
The first legal step is registering with the Securities and Exchange Commission (SEC). You must verify that your chosen name is available.
Name Reservation: Use the SEC electronic system to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Minimum Capital Requirement: For registered foundations in the Philippines, a starting fund of one million pesos is usually required to be held in a bank.
Step 3: Drafting Your Paperwork
To proceed, you must prepare the following records:
Founding Charter: This document details the names of the incorporators, the purpose of the foundation, and the principal office address.
Bylaws: These rules manage the management of the foundation, such as how board meetings are held and how officers are elected.
Treasurer’s Affidavit: A sworn statement confirming that the required funds have been received.
4. how to start a foundation philippines Obtaining a Tax Identification Number (TIN)
Once you have your SEC certificate, the next vital step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). The organization must obtain a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Keep how to start a foundation philippines in mind that being a non-profit does not automatically mean you are tax-free. You must actively seek for a Certificate of Tax Exemption from the BIR to minimize income tax on donations how to start a foundation philippines and grants.
Final Compliance Steps
The new entity must also get a Mayor’s Permit or Business Permit from the city hall where your office is located.
Moreover, if your foundation delivers social welfare services, you must register with the Department of Social Welfare how to start a foundation philippines and Development (DSWD). This step is critical how to start a foundation philippines for credibility and allows you to conduct fundraising activities legally.
Conclusion
Mastering how to start a foundation Philippines is a detailed process, but it sets the stage for lasting change. By adhering to these regulations, you help ensure your foundation is formally recognized and equipped to assist the community.