What is Branch Office?
A branch office is, quite simply, registering a foreign company to do business here in the Philippines. For the most part, branches operating in the Philippines perform their head office’s business activities in the Philippines. Being a mere extension of its parent company, ownership of the branch office belongs to the parent company and the liability of the Branch Office in the Philippines also extends until the it's parent company.Learn more
Branch Office is suitable for foreign companies who want to expand their business into the Philippines without any Filipino partners.
Common Industries allowed to be operated by a Branch Office
Since a Branch Office is usually 100% owned by a foreign entity, the type of business activities it is allowed to conduct in the Philippines must not be listed in the Negative List.
What is included in our all-inclusive service fee to assist businesses to set up Branch Office in the Philippines
- 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 Branch Office
You must remit at least USD200,000 during the initial stage of incorporation process unless your business will hire at least 50 direct employees in the Philippines or your Branch Office is certified by the Department of Science and Technology to engage in advanced technologies.
If your Branch Office qualifies for the latter, the inward remittance requirement may be reduced to USD100,000
Proof of remittance is required by SEC before approval.
● Resident Agent
The Branch Office must appoint a Resident Agent. A Resident Agent is an individual/corporation appointed by a foreign corporation to receive summons and other legal proceedings served to or against the foreign corporation’s local entity in the Philippines, on behalf of the corporation.
The resident agent can be an individual residing in the Philippines or a domestic corporation lawfully doing business in the country.
● Negative List
The Branch Office can generate revenue by selling goods and services to the domestic market as long as they are not listed in the Negative List.
The Branch Office must pay twenty-five percent (25%) income tax and twelve percent (12%) value-added tax.
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 Branch Office in the Philippines
Inclusive of gov't fee, legal fee, professional fee, notary fee, transport,
Original Receipt Printing Fee and other incidental fee.
Registered Office Address
Though not required during the registration process with SEC, the Branch Office must have a registered office address in the Philippines to complete the entire registration process. Registration with the Bureau of Internal Revenue (BIR) and local government unit (LGU) requires the Branch Office to present the Contract of Lease (if rented) or Certificate of Land Title (if owned) of their business address.
The most effective way to address this requirement is to rent a Virtual Office to serve as your official business address. You can transfer to a physical office and update your incorporation documents thereafter.
You can rent a 1 year Virtual Office in BGC for only PHP20,000
Virtual Office Service
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.