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 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 articulate the main objective of your foundation. Will you be addressing environmental conservation?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your entity must have a specific fund to sustain its projects. Having a solid mission guarantees 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 check that your desired 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 registered foundations in the Philippines, a minimum initial contribution of one million pesos is usually required to be maintained in a bank.
Documentation Requirements
To move forward, you have to compile the following records:
Articles of Incorporation: This file lists the founders' identities, the purpose of the how to start a foundation philippines foundation, and the primary location.
Bylaws: These regulations manage the internal operations of the foundation, such as how board meetings are held and how how to start a foundation philippines leaders are elected.
Treasurer’s Affidavit: A legal document confirming that the minimum funds have been deposited.
4. Obtaining a Tax Identification Number (TIN)
After receiving your SEC certificate, the next crucial step in the foundation how to start a foundation philippines setup process is visiting the Bureau of Internal Revenue (BIR). The organization must apply for a Tax Identification Number (TIN), set up its accounting how to start a foundation philippines 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 avoid income tax on contributions.
5. Local Permits and DSWD Accreditation
The new entity must likewise obtain a Mayor’s Permit or Business Permit from the municipality 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 how to start a foundation philippines detailed process, but it sets the stage for social progress. By following these steps, you guarantee your foundation is formally recognized and equipped to assist the Filipino people.