Establishing a non-profit organization or a foundation is a noble endeavor toward driving social change in the Philippines. Regardless, the process demands a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article details exactly how you can register a non-profit in the country.
1. Define Your Mission and Vision
Prior to starting the paperwork, you must clearly define the primary mission of your foundation. Will you be addressing environmental conservation?
In the local context, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your entity must have a particular fund to sustain its projects. Having a solid mission ensures that your founding documents align with your long-term intentions.
2. Name Reservation and SEC Registration
The initial formal requirement is applying with the Securities and Exchange Commission (SEC). You must confirm that your proposed name is available.
Reserving the Name: 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 starting fund of how to start a foundation philippines one million pesos is typically required to be deposited in a bank.
Step 3: Drafting Your Paperwork
To complete the registration, you have to compile the following how to start a foundation philippines materials:
Articles of Incorporation: This document lists the founders' identities, the organization's goal, and the principal office address.
Bylaws: These guidelines govern the management of the foundation, including things like how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement verifying that the minimum funds have been contributed.
Step 4: Registering with the BIR
Upon obtaining your SEC certificate, the next important step in how to start a foundation Philippines is registering with the Bureau of Internal Revenue (BIR). Your how to start a foundation philippines foundation must apply for a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Keep in mind that being a non-profit does not instantly mean you are exempt from all taxes. You must specifically apply for a tax-exempt ruling from the BIR to be cleared from income tax on funding.
Final Compliance Steps
The new entity must also get a Mayor’s Permit or Business Permit from the city hall where your office is located.
Moreover, if your foundation delivers social welfare services, how to start a foundation philippines you ought to seek accreditation from the Department of Social Welfare and Development (DSWD). DSWD registration is critical for credibility and allows you to perform donation drives legally.
Final Thoughts
Mastering how to start a foundation Philippines is a rigorous process, but it how to start a foundation philippines creates the foundation for meaningful impact. By adhering to these regulations, you help ensure your foundation is legally compliant and ready to serve the community.