Title: Steps to Establish a Foundation in the Philippines: The Essential Roadmap
Creating a non-profit organization or a foundation is a noble endeavor toward driving social change in the Philippines. Nevertheless, the process requires a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other governing agencies. This article outlines exactly how to start a foundation Philippines.The First Step: Identifying Your Goal
Before diving into the paperwork, you must articulate the primary mission of your foundation. Are you focusing on poverty alleviation?
In the Philippines, foundations are typically classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a dedicated fund to support its projects. Setting a clear goal helps ensure that your bylaws reflect your long-term aims.
2. Name Reservation and SEC Registration
The first legal step is filing with the Securities and Exchange Commission (SEC). It is necessary to confirm that your proposed name is not already taken.
Name Reservation: Use the SEC online portal to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For recognized foundations in the Philippines, a base capital how to start a foundation philippines of one million pesos is typically required to be maintained in a bank.
3. Preparing Essential Documents
To move forward, you must prepare the following records:
Articles of Incorporation: This document details the how to start a foundation philippines names of the incorporators, the purpose of the foundation, and the principal office address.
Bylaws: These rules govern the internal operations of the foundation, including how board meetings are held and how officers are elected.
Treasurer’s Affidavit: A sworn statement confirming that the minimum funds have been contributed.
4. Obtaining a Tax Identification Number (TIN)
Once you have your SEC certificate, the next important step in the foundation setup process is applying to the Bureau of Internal Revenue (BIR). The organization must obtain a Tax Identification Number (TIN), register its books of accounts, and apply for tax-exempt status.
Keep in mind that non-profit status does not instantly mean you are tax-free. You must formally petition for a Certificate of Tax Exemption from the BIR to minimize income tax on funding.
Final Compliance Steps
The organization must also secure a Mayor’s Permit how to start a foundation philippines or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Additionally, if your foundation provides social welfare activities, you ought to register with the Department of Social Welfare and Development (DSWD). This accreditation is critical for legitimacy and allows you to conduct fundraising activities formally.
Final Thoughts
Learning how to establish a non-profit in the Philippines is a detailed process, how to start a foundation philippines but it creates the foundation for how to start a foundation philippines lasting change. By adhering to these regulations, you ensure your foundation is formally recognized and ready to serve the public.