Creating a non-profit organization or a foundation is a noble endeavor toward helping the community in the Philippines. Nevertheless, the process demands a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article explains exactly the process of starting a foundation in the Philippines.
Step 1: Establishing Your Purpose
Before diving into the paperwork, you must clearly define the core purpose of your foundation. Is your goal related to poverty alleviation?
In the local context, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your group must have a particular fund to support its projects. Setting a clear goal ensures that your articles of incorporation match your long-term intentions.
Step 2: Securing Your Name and Legal Status
The first legal step is applying with the Securities and Exchange Commission (SEC). It is necessary to verify that your proposed name is unique.
Name Reservation: 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 recognized foundations in the Philippines, a starting fund of PHP 1,000,000 is typically required to be held in a bank.
3. Preparing Essential Documents
To complete the registration, you must prepare the following documents:
Founding Charter: This document outlines the names of the incorporators, the organization's goal, and the principal office address.
Operating Rules: These guidelines govern the management of the foundation, including how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement stating that the required funds how to start a foundation philippines have been contributed.
Step 4: Registering with the BIR
Upon obtaining your SEC certificate, the next vital step in the foundation setup process is registering with the Bureau of Internal Revenue (BIR). The entity must obtain a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Remember that being a non-profit does not immediately mean you are tax-free. You must formally petition how to start a foundation philippines for a tax-exempt ruling from the BIR to avoid income tax on funding.
5. Local Permits and DSWD Accreditation
The new entity must likewise obtain a Mayor’s Permit or Business Permit from the municipality how to start a foundation philippines where your office is located.
Additionally, if your foundation offers social welfare services, you must seek accreditation from the Department of Social Welfare and Development (DSWD). how to start a foundation philippines This accreditation is essential for trust and allows you to conduct public solicitations formally.
Conclusion
Learning how to how to start a foundation philippines establish a non-profit in the Philippines is a thorough process, but it paves the way for lasting change. By following these steps, you ensure your foundation is properly structured and equipped to assist the Filipino people.