Starting a company in the Philippines necessitates a deep 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 fiscal benefits of a partnership with the limited liability corporation protection of a major firm. In the Philippines, the term limited liability corporation philippines essentially refers to a Domestic Corporation.
Under the Revised Corporation Code, businessmen can register a corporation where their private wealth are shielded from the liabilities of the business . Whether you call it a limited liability company or a corporation, the primary goal remains the same: minimizing risk.
Why Choose a Corporate Structure?
Selecting a registered corporation in the Philippines provides several pros:
Asset Protection : The main feature of a limited liability corporation is that shareholders are only responsible up to the amount of their capital investment.
Perpetual Existence : A corporation remains to exist regardless of changes in shareholders .
Ease of Capital Raising : It is simpler to raise funds by limited liability company philippines issuing stocks to venture capitalists.
Credibility : Having "Inc." or "Corp." added to your brand improves reputation with banks .
Small Business Solutions
For those limited liability company philippines specifically 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 individual to benefit from limited liability company philippines the status of a limited liability corporation without needing a board of multiple directors.
How to Get Started
To establish your business with the Securities limited liability corporation philippines and Exchange Commission (SEC), you should gather the following:
Articles of Incorporation : Defining the mission and structure of the company .
Operational Rules: The governing rules for management .
Initial Investment: While most industries no longer require a minimum paid-up capital, specific sectors nevertheless do.
Treasurer’s Affidavit : To confirm that the starting funds are deposited in trust.
Conclusion: Navigating Your Options
While the literal terminology of a limited liability company may differ from Western standards , the limited liability corporation llc philippines philippines concept is well-established. By forming a corporation or an OPC, you secure that your entrepreneurial journey is shielded from unexpected financial hardships .
Ultimately , whether you are looking for an llc philippines or a standard limited liability company, the key is understanding the local laws. It is wise to consult a legal expert to ensure adherence with all SEC mandates.