Creating a non-profit organization or a foundation is a noble endeavor toward helping the community in the Philippines. Nevertheless, the process demands a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article explains exactly the process of starting a foundation in the Philippines.
Step 1: Establishing Your Purpose
Prior to starting the paperwork, you must articulate the main objective of your foundation. Are you focusing on healthcare?
In the Philippines, foundations are usually classified as non-stock, non-profit corporations. To be recognized as a foundation, your organization 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). It is necessary to verify that your proposed name is unique.
Name Reservation: Use the SEC electronic system to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Minimum Capital Requirement: For recognized foundations in the Philippines, a starting fund of PHP 1,000,000 is typically required to be held in a bank.
3. Preparing Essential Documents
To complete the registration, you must prepare the following documents:
Founding Charter: This document outlines the names 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 required funds have been contributed.
Step 4: Registering with the BIR
Upon obtaining your SEC certificate, the next vital step in the foundation setup process is registering with 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.
Remember that being how to start a foundation philippines a non-profit does not immediately mean you are exempt from all taxes. You must formally petition for a tax-exempt ruling from the BIR to avoid income tax on funding.
Step 5: Local Governance and Social Welfare
The organization must also obtain a Mayor’s Permit or Business Permit from the municipality how to start a foundation philippines 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 how to start a foundation philippines allows you to conduct public solicitations formally.
Conclusion
Understanding how how to start a foundation philippines 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 how to start a foundation philippines guarantee your foundation is formally recognized and equipped to assist the Filipino people.