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Starting a new business in Taguig, a thriving city in the Philippines, is governed by a set of laws and regulations. These include the Revised Corporation Code, the Foreign Investments Act, and local ordinances, among others. Compliance with these laws and regulations is mandatory when setting up a new business. The process can be complex and time-consuming, especially for those unfamiliar with Philippine laws.
Given the complexities involved in new business formation, seeking legal advice can be beneficial. A lawyer can assist in preparing and reviewing necessary documents such as Articles of Incorporation, By-laws, SEC requirements, and locality-specific licenses. They can provide sound advice on ownership structures and compliance with local and national laws. Lawyers can also assist in resolving any potential legal hurdles and preventing future legal issues that could arise.
In Taguig, like in any other city in the Philippines, local businesses are required to comply with local government requirements, including business permits and clearances. The local government of Taguig requires businesses to secure a Mayor’s Permit or Business License. This involves a series of steps such as securing a Barangay Clearance, undergoing sanitary and fire safety inspection, and paying local taxes.
You will need to prepare the following: Articles of Incorporation/Partnership, By-Laws, proof of initial capital deposit, and locality-specific licenses and permits such as the Mayor's Permit in Taguig.
Business structures allowed in the Philippines generally include sole proprietorship, partnership, corporation, and cooperatives. Foreign entities may also set up regional operating headquarters, branch offices, or representative offices, subject to certain requirements and limitations.
The Foreign Investments Act allows non-Filipinos to invest in the country. However, certain areas of business are reserved for Filipino citizens, while others may require a certain percentage of Filipino ownership.
Minimum capital requirements depend on the type of business and the ownership. For domestic corporations, a minimum paid-up capital of Php 5,000 is required. For businesses involving foreign equity, the minimum capital can range from USD 200,000 to USD 100,000 depending on certain conditions.
Penalties for non-compliance can range from fines to imprisonment, closure of business, or a combination thereof. Specific penalties depend on the nature and gravity of the offense.
The Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), and the Bureau of Internal Revenue (BIR) are important governmental bodies that provide assistance in new business formation. The local government of Taguig also has a business permit and licensing office to assist in securing local permits. Various online resources also exist which can provide templates and guides for document preparation and submission.
If you are planning to start a business in Taguig, it is advisable to consult with a local attorney specializing in commercial law. This can help ensure all necessary steps are carefully followed and legal requirements are met. Always keep in mind that early legal advice can prevent difficulties and potential penalties down the line.
