Establishing a company in the Philippines involves a thorough understanding of the legal frameworks available. Many business owners often look into the term limited liability company philippines or llc philippines expecting to find a direct match to the American LLC model. Nevertheless , the Philippine legal system operates slightly differently.
The Legal Landscape: Does an LLC Philippines Exist?
In the United States, a limited liability company is a unique entity that blends the taxation of a partnership with the limited liability corporation protection of a standard firm. In the Philippines, the term limited liability corporation philippines technically refers to a Domestic Corporation.
Under the Revised Corporation Code, founders can form a corporation where their personal property are protected from the obligations of the business . Whether you call it a limited liability company or a corporation, the core goal remains the same: reducing risk.
Key Benefits of Forming a Limited Liability Corporation
Opting for a registered corporation in the Philippines offers several benefits :
Asset Protection : The primary feature of a limited liability corporation limited liability corporation is that shareholders are only responsible up to the amount of their capital contribution .
Continuity: A corporation persists to exist despite of changes in ownership .
Funding Growth: It is easier to secure capital by issuing shares to venture capitalists.
Credibility : Having "Inc." or "Corp." attached to your name enhances reputation with banks .
Small Business Solutions
For those specifically looking for a limited liability company philippines setup as a single founder, the One Person Corporation (OPC) is the best match. Launched recently, the OPC allows a single individual to benefit from the status limited liability company of a limited liability corporation without needing a board of multiple directors.
How to Get Started
To establish your business with the Securities and Exchange Commission (SEC), you should gather the following:
Articles of Incorporation : Defining the mission and structure of the business.
Operational Rules: The internal rules for management .
Initial Investment: While many industries no longer require a set paid-up capital, specific sectors still do.
Treasurer’s Affidavit : To confirm that the initial funds are deposited in trust.
Final Thoughts
While the literal terminology of a limited liability company might differ from Western standards , the limited liability corporation philippines model is well-established. By registering a corporation or an OPC, you ensure limited liability corporation that your business journey is protected from unforeseen financial burdens.
To wrap up, whether you are limited liability corporation philippines searching for an llc philippines or a standard limited liability company, the key is knowing the Philippine limited liability company laws. Always consult a professional to verify adherence with all government requirements .