Establishing a non-profit organization or a foundation is a significant step toward driving social change in the Philippines. However, the process requires a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other governing agencies. This article explains exactly how to start a foundation Philippines.
1. Define Your Mission and Vision
Before diving into the paperwork, you must determine the primary mission 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 articles of incorporation match your long-term intentions.
2. Name Reservation and SEC Registration
The primary hurdle is filing with the Securities and Exchange Commission (SEC). It is necessary to verify that your proposed name is unique.
Reserving the Name: Use the SEC electronic system 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 PHP 1,000,000 is typically required to be deposited in a bank.
3. Preparing Essential Documents
To complete the registration, you must prepare the following materials:
Articles of Incorporation: This document details the names of the incorporators, the organization's goal, and the principal office address.
Operating Rules: These guidelines govern the how to start a foundation philippines 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
Once you have your SEC certificate, the next vital how to start a foundation philippines step in how to start a foundation Philippines is registering with the Bureau of Internal Revenue (BIR). Your foundation must obtain a Tax Identification Number how to start a foundation philippines (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. how to start a foundation philippines 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
Your foundation must also get a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Moreover, if your foundation delivers social welfare activities, you should how to start a foundation philippines register with the Department of Social Welfare and Development (DSWD). This step is vital for legitimacy and allows you to manage fundraising activities lawfully.
Summary
Learning how to start a foundation Philippines is a thorough process, but it creates the foundation for meaningful impact. By completing these requirements, you ensure your foundation is properly structured and prepared to help the public.