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 equivalent to the American LLC model. Interestingly, the Philippine legal system operates somewhat differently.
The Legal Landscape: Does an LLC Philippines Exist?
In the United States, a limited liability company is a unique entity that combines the taxation of a partnership with the limited liability corporation protection of a standard firm. In the Philippines, the term limited liability corporation philippines essentially refers to a Domestic Corporation.
Under the Revised Corporation Code, stakeholders can create a corporation where their personal assets are protected from the obligations of the business . Whether you call it a limited liability company or a corporation, the primary goal remains the same: reducing risk.
Key Benefits of Forming a Limited Liability Corporation
Selecting a registered corporation in the Philippines offers several advantages :
Asset Protection : The primary feature of a limited liability corporation is that owners are only responsible up to the amount of limited liability corporation philippines their capital contribution .
Perpetual Existence : A corporation persists to exist despite of changes in management.
Ease of Capital Raising : It is easier to attract investors by issuing shares to venture limited liability company philippines capitalists.
Professionalism: Having "Inc." or "Corp." added to your name enhances trust with banks .
The One Person Corporation (OPC)
For those particularly looking for llc philippines a limited liability company philippines setup as a single founder, the One Person Corporation (OPC) is the most relevant match. Launched recently, the llc philippines OPC enables a single person to benefit from the status of a limited liability corporation without requiring a board of five directors.
How to Get Started
To set up your company with the Securities and Exchange Commission (SEC), you should gather the following:
Articles of Incorporation : Outlining the purpose and framework of the business.
Operational Rules: The governing rules for operations.
Initial Investment: While most industries don't require a set paid-up capital, certain sectors nevertheless do.
Financial Certification: To confirm that the starting funds are held in trust.
Final Thoughts
While the exact terminology of a limited liability company might differ from Western standards , the limited liability corporation philippines model is well-established. By forming a corporation or an OPC, you ensure that your entrepreneurial journey is protected from unexpected legal burdens.
Ultimately , whether you are searching for limited liability company an llc philippines or a standard limited liability company, the trick is knowing the Philippine regulations . Always seek advice from a consultant to verify compliance with all government mandates.