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
Before diving into the paperwork, you must clearly define the core purpose of your foundation. Is your goal related to poverty alleviation?
In the local context, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your group must have a specific fund to support its projects. Defining your vision early helps ensure that your founding documents reflect your long-term intentions.
2. Name Reservation and SEC Registration
The primary hurdle is filing 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 reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as mandated by law.
Minimum Capital Requirement: For recognized foundations in the Philippines, a starting fund of one million pesos is standardly required to be deposited in how to start a foundation philippines a bank.
3. Preparing Essential Documents
To complete the registration, you will need the following materials:
Founding Charter: This document details the names of the incorporators, the how to start a foundation philippines 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 how to start a foundation philippines officers are elected.
Financial Certification: A sworn statement stating that the required funds have been contributed.
Step 4: how to start a foundation philippines 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 obtain a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Remember that being 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.
5. Local Permits and DSWD Accreditation
The organization must also 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 how to start a foundation philippines 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 adhering to these regulations, you guarantee your foundation is formally recognized and ready to serve the community.