Creating a non-profit organization or a foundation is a significant step toward addressing societal issues in the Philippines. Regardless, the process necessitates a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other related agencies. This article outlines exactly how you can register a non-profit in the country.
The First Step: Identifying Your Goal
Before beginning the paperwork, you must determine the primary mission of your foundation. Is your goal related to environmental conservation?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a specific fund to sustain its projects. Defining your vision early helps ensure that your founding documents reflect your long-term objectives.
The SEC Registration Process
The initial formal requirement is registering with the Securities and Exchange Commission (SEC). You must confirm that your chosen name is available.
Reserving the Name: Use the SEC online portal to hold your name. Make sure the name contains terms like "Foundation" or "Inc." as required by law.
Initial Funding: For recognized foundations in the Philippines, a minimum initial contribution of one million pesos is standardly required to be deposited in a bank.
Documentation Requirements
To proceed, you how to start a foundation philippines will need the following records:
Articles of Incorporation: This file lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These rules manage the internal operations of the foundation, how to start a foundation philippines including things like how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A legal document confirming that the minimum funds have been how to start a foundation philippines deposited.
4. Obtaining a Tax Identification Number (TIN)
After receiving your SEC certificate, the next crucial step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). The organization must apply for a Tax Identification Number (TIN), set up its accounting records, and seek tax-exempt status.
Note that non-profit status does not automatically mean you are tax-free. You must specifically apply for a tax-exempt ruling from the BIR to avoid income tax on contributions.
5. Local Permits and DSWD Accreditation
The how to start a foundation philippines new entity must likewise secure a Mayor’s Permit or Business Permit from the city hall where your office is located.
Additionally, if your foundation offers social welfare services, you must seek accreditation from the Department of Social Welfare and Development (DSWD). This accreditation is essential for 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 equipped how to start a foundation philippines to assist the Filipino people.