Establishing a non-profit organization or a foundation is a significant step toward helping the community in the Philippines. However, the process requires 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. Are you focusing on education?
In the local context, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a particular fund to support its projects. Setting a clear goal ensures that your articles of incorporation match 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 registered foundations in the Philippines, a base capital of PHP 1,000,000 is typically required 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 of the incorporators, the purpose of the foundation, and the primary location.
Bylaws: These guidelines govern the daily activities of the foundation, including how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement stating that the initial funds have been contributed.
Step 4: Registering with the BIR
Once you have your SEC certificate, the next vital step in how to start a foundation Philippines is registering how to start a foundation philippines with the Bureau of Internal Revenue (BIR). Your foundation must obtain a Tax Identification Number (TIN), set up its accounting records, and request tax-exempt status.
Remember that being a non-profit does not instantly mean you are exempt from all taxes. You must formally petition for a Certificate of Tax Exemption from the BIR to be cleared from 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 Local Government Unit (LGU) where your office is located.
Moreover, if your foundation how to start a foundation philippines provides social welfare programs, you ought to register with the Department of Social Welfare and Development (DSWD). DSWD registration is critical for credibility and allows how to start a foundation philippines you to perform donation drives legally.
Final Thoughts
Mastering how to start a foundation Philippines is a rigorous how to start a foundation philippines process, but it creates the foundation for social progress. By adhering to these regulations, you guarantee your foundation is formally recognized and ready to serve how to start a foundation philippines the community.