Branch Office.

Registration of a
Branch Office in the Philippines

Branch Office of a Foreign Corporation operating in the Philippines must obtain a "license to do business" from the SEC. The foreign corporation's head office must prove its legal existence in its country of origin, its financial soundness, and its authorization to set up a branch in the Philippines. The Branch will need to appoint a Resident Agent in the Philippines who will be in charge of receiving summons and legal processes. This allows the SEC and other entities to obtain jurisdiction over the foreign company.

Setting up a branch office normally involves remitting US$200,000 as capital investment when registering a company with the SEC. However, there are exceptions, such IT-BPO operations exporting their services or generating income abroad.

Branches engaged in activities involving advance technology, or that employ at least 50 direct employees, are required to inwardly remit a reduced amount of US$100,000 as assigned capital.

Export-oriented branches are not subject to the $200,000 or $100,000 assigned capital if exporting physical goods or services or generating revenue from abroad amounting to more than 60% of its gross sales the branch office can be fully foreign-owned, as it is considered an Export Enterprise under the Foreign Investments Act. You can register a branch office in the Philippines with as little as P5,000 paid up capital. However, most banks require P25,000 - P50,000 to open a corporate bank account.

It is advisable for companies to register their remiitance with the Central Bank of the Philippines or Bangko Sentral ng Pilipinas and obtain a BSRD.

Processing timeline requires 45 working days.