Establishing a company in the Philippines involves a clear understanding of the regulatory frameworks available. Many investors often look into the term limited liability company philippines or llc philippines hoping to find a direct match to the American LLC model. Interestingly, the Philippine legal system operates slightly differently.
Defining the Business Structure in the Philippines
In the United States, a limited liability company is a hybrid entity that merges the fiscal benefits of a partnership with the limited liability corporation protection of a major firm. In the Philippines, the term limited liability corporation philippines technically refers to a Domestic Corporation.
Under the Revised Corporation Code, businessmen can create a corporation where their personal property are insulated from the obligations of the entity. Whether you call it a limited liability company or a corporation, the primary goal remains the same: reducing risk.
Key Benefits of Forming a Limited Liability Corporation
Selecting a corporate structure in the Philippines offers several advantages :
Liability Shield: The main feature of a limited liability corporation is that owners are only responsible up to the extent of their capital contribution .
Perpetual Existence : A corporation persists to exist regardless of changes in shareholders .
Funding Growth: It is easier to secure capital by issuing stocks to venture capitalists.
Professionalism: Having "Inc." or "Corp." added to your brand boosts reputation with clients.
Small Business Solutions
For those specifically looking for a limited liability company philippines setup as a solo founder, the One Person Corporation limited liability company (OPC) is the closest match. Launched recently, the OPC permits a single individual to enjoy the status of a limited liability corporation without needing a board of five directors.
How to Get Started
To register your company with the Securities and Exchange Commission (SEC), you should gather the following:
limited liability corporation Articles of Incorporation : Defining the mission and structure of the company .
Bylaws : The internal rules for management .
Initial Investment: While most industries don't require a set paid-up capital, certain sectors still do.
Treasurer’s Affidavit : To verify that the starting funds are held in trust.
Conclusion: Navigating Your Options
While the exact terminology of a limited liability company may differ limited liability company from limited liability corporation Western definitions, the limited liability corporation philippines concept is robust . By forming a corporation or an OPC, you secure that your business journey is safeguarded from unforeseen legal hardships .
To wrap limited liability corporation philippines up, whether you are searching for an llc philippines or a standard limited liability company, the trick is understanding the Philippine regulations . It is wise to consult a consultant to ensure adherence with all government requirements .