Starting a venture in the Philippines necessitates a clear understanding of the legal frameworks available. Many business owners often search for the term limited liability company philippines or llc philippines hoping to find a direct match to the American LLC model. However , the Philippine legal system functions slightly differently.
Defining the Business Structure in the Philippines
In the United States, a limited liability company is a hybrid entity that combines the taxation of a partnership with the limited liability corporation protection of a major firm. In the Philippines, the term limited liability corporation philippines essentially refers to a Domestic Corporation.
Under the Revised Corporation Code, stakeholders can register a corporation where their personal assets are shielded from the debts of the business . Whether you call it a limited liability company or a corporation, the primary goal remains the same: reducing risk.
Why Choose a Corporate Structure?
Opting for a registered corporation in the Philippines offers several advantages :
Asset Protection : The most significant feature of a limited liability corporation is that shareholders are only liable up to the extent of their capital contribution .
Continuity: A corporation remains to exist despite of changes in management.
Funding Growth: It is more efficient to secure capital by issuing stocks to venture capitalists.
limited liability company Professionalism: Having "Inc." or "Corp." attached to your brand enhances trust with banks .
The One Person Corporation (OPC)
For those specifically looking for a limited liability company philippines setup as a single founder, the One Person Corporation (OPC) is the most limited liability company philippines relevant match. Launched recently, the OPC permits a single individual to enjoy the status of a limited liability corporation without needing a board of limited liability corporation five directors.
How to Get Started
To register your business with the Securities and Exchange Commission (SEC), you will need the following:
Articles of Incorporation limited liability company philippines : Defining the mission and framework of the company .
Bylaws : The governing rules for operations.
Minimum Capital : While many industries don't require a set paid-up capital, certain sectors still do.
Treasurer’s Affidavit : To confirm that the starting funds are deposited in trust.
Conclusion: Navigating Your Options
While the literal terminology of a limited liability company may differ from Western standards llc philippines , the limited liability corporation philippines concept is well-established. By forming a corporation or an OPC, you secure that your business journey is safeguarded from unforeseen legal hardships .
In summary , whether you are looking for an llc philippines or a standard limited liability company, the secret is understanding the Philippine regulations . Always seek advice from a professional to ensure adherence with all government mandates.