What is Domestic Corporation?
This is similar to Private Limited or LLC in other parts of the world. It is basically the most common form of company structure where the company liabilities is limited to the Paid Up Capital amount. Shareholders liabilities are also limited to the number of shares they own in the Company.
Domestic Corporation is the most common business structure and it is meant for company that has over 60% Filipino ownership. Domestic Corporation is eligible to take part in most industries unlike Foreign-Owned Domestic Corporation.
Common Industries allowed to be operated by Domestic Corporation
- Retail Business
- Food & Beverages Businesses
- Franchise Businesses
- Trading Company
- IT-BPO, KPO or Outsourcing Company
- Back Office Company
- Offshore or Offshoring Company
- Shared Services Company
- Call Center Company
- IT, Software, or Web Development Company
- Animation Development or Design Company
- Internet / E-commerce Company
- Medical Transcription Company
- Legal Transcription Company
- Import, Export, or Trading Company
- Local Manpower Recruitment Company
- Mining Company
- Power or Energy Company
- Shelf Corporation
- Non-Profit, Non-Stock Company
- Manufacturing Company
- Global In-house Centers
Domestic Corporation can engage almost all kind of businesses except those that may require special approval such as military related businesses.
What is included in our all-inclusive service fee to assist businesses to set up Foreign-owned Domestic Corporation
- Consultation with the Legal Team
- Company Name Reservation
- Drafting of the Articles of Incorporation
- Drafting of the By-Laws
- Drafting of Affidavit of Undertaking
- Filling and registering with the Securities and Exchange Commissions (SEC)
- Registration of your Company with the BIR of the corresponding city
This includes printing of your Official Receipts
- Registration of your Company with the Local Government Units of the corresponding city
Includes registration with:
- Barangay's Permit
- Mayor's Permit
- Sanitary Permit
- Fire and Safety Permit
- Free 45 mins Accounting Consultation on compliance upon turnover of the registration documents
Key Facts to know before choosing to set up a Foreign-owned Domestic Corporation
You must remit at least USD200,000 during the initial stage of incorporation process. Proof of remittance is required by SEC before approval.
● Corporate Officers
Foreigners can own up to 100% of the company shares but you need to elect 3 Corporate Officers whereby the President can be a foreigner or a Filipino, the Corporate Treasurer must be a Resident of the Philippines and the Corporate Secretary must be a Filipino citizen.
● Negative List
Foreign-owned Domestic Corporation can generate revenue by selling good and services to domestic market as long as they are not listed in the Negative List.
Foreign-owned Domestic Corporation is obliged to pay a Corporate Tax rate of 25% (reduced from 30%) for Philippine source income. Dividends that needs to be sent back to a foreign company will be tax at 15%/25%.
At vOffice, we are business owners too and one thing that we hated when we started our business in the Philippines in 2012 is to discover there are so many hidden fees and surprises on top of any published price and we are determined to provide our clients a clear, straight-forward, all inclusive service and price.
Total fee to setup a Foreign-owned Domestic Corporation
Inclusive of gov't fee, legal fee, professional fee, notary fee, transport,
Original Receipt Printing Fee and other incidental fee.
The timeline to incorporate company in the Philippines
Other Addons you may need or want to consider
All Foreign-owned Domestic Corporation must be registered to a formal business address that complies with SEC and LGUs requirements and if you do not have your own office yet, the best way forward is to use a Virtual Office.
Add 1 Year Virtual Office in BGC for only PHP20,000
Need Some Help?
Speak to Our Company Incorporation Team
If you would like to have a free consultation with one of our Company Incorporation expert, please complete the contact form below. We are happy to meet you in our office or talk to you on the phone.