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 how to start a foundation 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 environmental conservation?
In the local context, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a specific fund to sustain its projects. Defining your vision early helps ensure that your founding documents reflect your long-term objectives.
The SEC Registration Process
The primary hurdle is filing with the Securities and Exchange Commission (SEC). You must confirm that your proposed name is not already taken.
Reserving the Name: Use the SEC electronic system to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as required by law.
Initial Funding: how to start a foundation philippines For recognized foundations in the Philippines, a how to start a foundation philippines starting fund of PHP 1,000,000 is usually required to be maintained in a bank.
Documentation Requirements
To complete the registration, you have to compile the following materials:
Founding Charter: This file lists the founders' identities, the organization's goal, and the primary location.
Operating Rules: These guidelines govern the internal operations of the foundation, including things like how board meetings are conducted and how officers are how to start a foundation philippines elected.
Financial Certification: A how to start a foundation philippines legal document verifying that the required funds have been received.
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 obtain a Tax Identification Number (TIN), register its books of accounts, and request tax-exempt status.
Remember 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.
Final Compliance Steps
The new how to start a foundation philippines entity must likewise secure a Mayor’s Permit or Business Permit from the city hall where your headquarters resides.
Furthermore, if your foundation delivers social welfare activities, you should seek accreditation from the Department of Social Welfare and Development (DSWD). This step is vital for legitimacy and allows you to manage fundraising activities lawfully.
Summary
Learning how to start a foundation Philippines is a thorough process, but it paves the way for meaningful impact. By completing these requirements, you ensure your foundation is properly structured and equipped to assist the public.