A Handy Guide for PH Non-Profit Organizations Registration

  • Post author:
  • Post category:Start Up

In the Philippines, non-stock corporations are those that may be formed for religious, charitable, professional, cultural, fraternal, literary, educational, social, civic service, or other similar purposes, like industry, trade, agriculture, and similar chambers, or a combination of such. If you’re thinking of starting one, here are some things to remember. 

Figuring Out Non-Profits

Noteworthy, tax services in Manila say that some non-profit and non-stock organizations in the Philippines are granted tax savings with income tax exemptions on gifts, grants, and donations, so long as:

1. They are exclusively designed for religious, scientific, charitable, athletic, cultural, social welfare, veteran rehabilitation, and other similar purposes, and may be designed for one or more of such.

2. No portion of their net income or assets belongs to or benefits a member, organizer, officer, or a specific person related to the organization.

Donee-institution-certified organizations are entitled to tax-deductible donations as per the BIR.

How to Register Properly

To register, accounting services in the Philippines say you first need the following:

1. At least 5 incorporators, the majority of whom should be Philippine residents

2. The complete address of the mentioned incorporators

3. The BIR Tax Identification Number (TIN) of each of the incorporators

4. The contributions of members and incorporators

After securing the above-mentioned, you need to secure the following documentation as mandated by the Securities and Exchange Commission (SEC). 

Basic Requirements

1. The name verification slip of the company name you seek to use, as such should be manually reserved with the SEC for minimal fees of P 40 for every 30 days up to a maximum of 90 days and subject to renewal or registration through the SEC Register

2. By-laws and Articles of Incorporation

3. A joint affidavit of two incorporators undertaking to have the company name changed (if it is to be changed)

4. List of members certified by the corporate secretary unless such is already indicated in the Articles of Incorporation

5. List of names of donors and contributors with the corresponding amounts given as certified by the treasurer

Additional Requirements

  • For Religious Corporations, you will need an affidavit of affirmation by the chief priest, presiding elder, or equivalent.
  • For Federations, you will need a certified list of all member associations signed by the corporate secretary or president.
  • For Condominium corporations or associations, you will need the Master Deed along with the primary entry of the Register of Deeds, as well as certification that no other similar condominium project or association is in existence.
  • For Foundations, you will need an additional notarized certificate of bank deposit of the contribution of no less than P1M together with a statement of willingness allowing SEC to do audits.

Other Processes

In addition to the SEC application and approval process, you will need to undertake tax authority registration. The SEC will assign your firm with a TIN upon the release of the Certificate of Incorporation, and such must be registered with the BIR. To avail of tax exemptions for non-stock and non-profit corporations, tax and audit services in the Philippines note that you have to secure the BIR ruling with the tax authority at or with the Revenue District Office of registration.

You will also have to apply for business permits and licenses in the local government of the business location. Moreover, the corporation will have to register as an employer with the Social Security System (SSS), Philippine Health Insurance (PhilHealth), and Home Development Mutual Fund (HDMF).

Embarking on your non-profit journey in the Philippines? Beyond registration, ensure compliance seamlessly. Let our experts handle it all for you. For tailored philanthropy accounting services in Pasig, call us today and let’s elevate your impact together!