Creating a non-profit organization or a foundation is a significant step toward helping the community in the Philippines. Regardless, the process requires a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other governing agencies. This article outlines exactly how to start a foundation Philippines.
Step 1: Establishing Your Purpose
Prior to starting the paperwork, you must determine the main objective of your foundation. Will you be addressing education?
In the Philippines, foundations are typically classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a particular fund to fund its projects. Setting a clear goal guarantees that your articles of incorporation align with your long-term objectives.
2. Name Reservation and SEC Registration
The first legal step is registering with the Securities and Exchange Commission (SEC). It is necessary to check that your chosen name is unique.
Name Reservation: Use the SEC online portal to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as required by law.
Minimum Capital Requirement: For registered foundations in the Philippines, a minimum initial contribution of PHP 1,000,000 is usually required to be maintained in a bank.
3. how to start a foundation philippines Preparing Essential Documents
To move forward, you will need the following materials:
Founding Charter: This file details the founders' identities, the purpose of the foundation, and the principal office address.
Bylaws: These rules dictate the daily activities of the foundation, such as how to start a foundation philippines how board meetings are held and how officers are elected.
Treasurer’s Affidavit: A sworn statement stating that the minimum funds have been deposited.
Taxation and the BIR
After receiving your SEC certificate, the next vital how to start a foundation philippines step in how to start a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). The entity must obtain a Tax how to start a foundation philippines Identification Number (TIN), register its books of accounts, and apply for tax-exempt status.
Remember that non-profit status does not automatically mean you are tax-free. You must actively seek for a Certificate of Tax Exemption from the BIR to avoid income tax on funding.
Step 5: Local Governance and Social Welfare
Your foundation must likewise obtain a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Additionally, if your foundation provides social welfare programs, you should seek accreditation from the Department of Social Welfare and Development (DSWD). DSWD registration is vital for trust how to start a foundation philippines and allows you to conduct donation drives lawfully.
Conclusion
Understanding how to start a foundation Philippines is a thorough process, but it sets the stage for social progress. By completing these requirements, you ensure your foundation is formally recognized and ready to serve the public.