Creating a non-profit organization or a foundation is a noble endeavor toward helping the community in the Philippines. Nevertheless, the process requires a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other governing agencies. This article details exactly how you can register a non-profit in the country.
The First Step: Identifying Your Goal
Before beginning the paperwork, you must articulate the main objective of your foundation. Will you be addressing education?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a particular fund to support its projects. Defining your vision early helps ensure that your founding documents reflect your long-term objectives.
The SEC Registration Process
The initial formal requirement is registering with the Securities and Exchange Commission (SEC). The founders need to check that your desired name is not already taken.
Reserving the Name: Use the SEC online portal to hold your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated 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 typically required to be held in a bank.
Step 3: Drafting Your Paperwork
To how to start a foundation philippines complete the registration, you must prepare the following documents:
Founding Charter: This document outlines the names of how to start a foundation philippines the incorporators, the organization's goal, and the principal office address.
Operating Rules: These rules dictate the management of the foundation, including things like how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A legal document verifying that the minimum funds have been received.
4. Obtaining a Tax Identification Number (TIN)
After receiving your SEC certificate, the next important step in how to start a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). Your foundation must secure a Tax Identification Number (TIN), register its books of accounts, and request tax-exempt status.
Keep in mind that being a non-profit does not instantly mean you are exempt from all taxes. You must formally petition for a tax-exempt ruling from the BIR to be cleared from income tax on funding.
Step 5: Local Governance and Social Welfare
The organization must also obtain how to start a foundation philippines a Mayor’s Permit or Business Permit from the municipality 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). This accreditation is essential for trust and allows you to conduct public solicitations formally.
Summary
Learning how to establish a non-profit in the Philippines is how to start a foundation philippines a thorough process, but it paves the way for lasting change. By completing these requirements, you ensure your foundation is properly structured and prepared to help the public.