Title: Steps to Establish a Foundation in the Philippines: A Complete Guide
Establishing a non-profit organization or a foundation is a significant step toward driving social change in the Philippines. However, the process requires a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other governing agencies. This article details exactly how to start a foundation Philippines.1. Define Your Mission and Vision
Before beginning the paperwork, you must determine the primary mission of your foundation. Will you be addressing healthcare?
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. Having a solid mission guarantees that your bylaws align with your long-term aims.
Step 2: Securing Your Name and Legal Status
The initial formal requirement is registering with the Securities and Exchange Commission (SEC). The founders need to check that your desired name is not already taken.
Name Reservation: Use the SEC online portal 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 typically required how to start a foundation philippines 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 how to start a foundation philippines of the incorporators, the organization's goal, and the principal office address.
Operating Rules: These guidelines govern the management of the foundation, including how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement stating that the how to start a foundation philippines required funds have been deposited.
4. Obtaining a Tax Identification Number (TIN)
Upon obtaining your SEC certificate, the next crucial step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). The entity must apply for a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Note that non-profit status does not immediately mean you are tax-free. You must specifically apply for a tax-exempt ruling from the BIR to minimize income tax on contributions.
Final Compliance Steps
Your foundation must likewise secure a Mayor’s Permit or Business Permit from the city hall where your headquarters resides.
Furthermore, if your foundation delivers social welfare activities, you ought to register with the Department of Social Welfare and Development (DSWD). DSWD registration is critical for credibility how to start a foundation philippines and allows you to perform donation drives legally.
Final Thoughts
Mastering how to start a foundation Philippines is a rigorous process, but it creates the foundation for meaningful impact. By adhering to these regulations, how to start a foundation philippines you help ensure your foundation is legally compliant and prepared to help the community.