Creating a non-profit organization or a foundation is a noble endeavor toward addressing societal issues in the Philippines. Regardless, the process requires a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other related agencies. This article explains exactly how you can register a non-profit in the country.
Step 1: Establishing Your Purpose
Before diving into the paperwork, you must articulate the primary mission of your foundation. Is your goal related to environmental conservation?
In the local context, foundations are generally 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 helps ensure that your founding documents reflect your long-term objectives.
The SEC Registration Process
The initial formal requirement is filing with the Securities and Exchange Commission (SEC). The founders need to confirm that your desired name is available.
Name Reservation: Use the SEC online portal to reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For registered foundations in the Philippines, a base capital how to start a foundation philippines of PHP 1,000,000 is usually required to be deposited in a bank.
3. Preparing Essential Documents
To move forward, you will need the following documents:
Articles of Incorporation: This document outlines the founders' identities, how to start a foundation philippines the organization's goal, and the primary location.
Bylaws: These guidelines manage the management of the foundation, including things like how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A sworn statement confirming that the initial funds have been contributed.
Step 4: Registering with the BIR
After receiving your SEC certificate, the next vital step in how to start a foundation Philippines is registering with the Bureau of Internal Revenue (BIR). Your foundation must apply for a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Remember that non-profit status does not how to start a foundation philippines immediately mean you are tax-free. You must actively seek for a Certificate of Tax Exemption from the BIR to avoid income tax on funding.
Final Compliance Steps
The new entity must likewise obtain a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Furthermore, if your foundation delivers social welfare programs, you should register with the Department of Social how to start a foundation philippines Welfare and Development (DSWD). This accreditation is vital for legitimacy and allows you to conduct public solicitations how to start a foundation philippines formally.
Conclusion
Mastering how to start a foundation Philippines is a rigorous process, but it creates the foundation for social progress. By adhering to these regulations, you guarantee your foundation is properly structured and ready to serve the public.