Legal and Compliance
In the Philippines, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Philippines legal and compliance requirement to be followed by incorporated entities:
· Foreigners willing to establish sole proprietorships are required to provide evidence of residency in the Philippines during the registration process.
· Partnerships of more than Php 3,000 capital must register with the Securities and Exchange Commission.
· Liabilities of shareholders in a corporation are limited to their capital contribution.
· Corporations must have at least 5 incorporators and a minimum paid up capital of Php 5,000
· At least 25% of the authorized stock capital of corporations must be subscribed and at least 25% of the total subscription must be paid.
· Under the law, stock corporations must observe a 60%-40% rule on ownership such that 60% of the company must be owned by Filipino citizens. However, due to the amendments to the foreign investor law, this law can be flexible depending on the industry and nature of the business.
· Branch offices must have a minimum paid up capital of $200,000. Branches are allowed to derive income from host countries.
· Representative offices must have minimum inward remittance amount of $30,000 to cover its expenses. Representative offices are not allowed to derive income from the host country.
· RHQS’s activities are limited supervisory, communication and coordinating center for its subsidiaries, affiliates, and branches in the Asia-Pacific region.
· RHQS are required to have an inward remittance of $50,000 annually.
· ROHQS are allowed more activities than RHQS. The required capital is $200,000.
YourGlobalPro professionals can assist you with Philippines Legal and Compliance requirements
HR and Employment Law and Immigration / VISA
Below are some of the important points in relation to HR & employment law in Philippines:
· There is no limit on the term of labor contracts.
· Employers must pay a premium of 25% of hourly pay for overtime work
· Paid annual leaves regardless of tenure is a minimum of 5 days.
· Companies with more than 10 employees are required to establish a retirement fund.
· In general, a foreign national applying for any kind of visa to enter the Philippines is required to submit a report from a medical examination conducted by a duly authorized physician.
· Foreign nationals who are not classified as restricted or high-risk may visit the Philippines without obtaining entry visas before departure from their point of origin if they have valid passports and onward tickets or confirmed travel tickets for a return journey.
· Foreign nationals seeking employment in the Philippines, whether residents or nonresidents, must secure an Alien Employment Permit (AEP) from the Department of Labor and Employment (DOLE).