Starting a company in the Philippines involves a thorough understanding of the legal frameworks available. Many business owners often look into the term limited liability company philippines or llc philippines expecting to find a direct match to the American LLC model. Nevertheless , the Philippine legal system operates slightly differently.
The Legal Landscape: Does an LLC Philippines Exist?
In the United States, a limited liability company is a unique entity that blends the taxation of a partnership with the limited liability corporation protection of a standard firm. In the Philippines, the term limited liability corporation philippines technically refers to a Domestic Corporation.
Under the Revised Corporation Code, founders can register a corporation where their private wealth are shielded from the obligations of the business . Whether you call it a limited liability company or a corporation, the main goal remains the same: reducing risk.
Key Benefits of Forming a Limited Liability Corporation
Opting for a corporate structure in the Philippines grants several advantages :
Liability Shield: The most significant feature of a limited liability corporation is that owners are only liable up to the extent of their capital contribution .
Perpetual llc philippines Existence : A corporation remains to exist regardless of changes in management.
Ease of Capital Raising : It is more efficient to raise funds by issuing stocks to new partners .
Credibility : Having "Inc." or "Corp." added to your brand improves trust with suppliers .
Small Business Solutions
For those particularly looking for a limited liability company philippines setup as a solo founder, the One Person Corporation (OPC) is the best match. Launched recently, the OPC allows a single person to benefit from the status of a limited liability corporation without needing a board of five directors.
How to Get Started
To establish your business with the Securities and Exchange Commission (SEC), you will need the following:
Articles of Incorporation : Defining the llc philippines mission and structure of the company .
Operational Rules: The internal rules for management .
Initial Investment: While many industries no longer require a set paid-up capital, specific sectors still do.
Treasurer’s Affidavit : To confirm that the initial funds are deposited in trust.
Final Thoughts
While the literal terminology of a limited liability company might differ from Western standards , the limited liability corporation philippines model limited liability company philippines is well-established. By registering a corporation or an OPC, you secure that your business journey is shielded from unforeseen financial hardships .
Ultimately , whether limited liability corporation philippines you are looking for an llc philippines or a standard limited liability company, the key is understanding the local laws. It is wise to seek llc philippines advice from a legal expert to ensure adherence with all SEC mandates.