Regional Headquarters Registration in Philippines

Learn More About Regional Headquarters in Philippines

The regional headquarters in Philippines, commonly known as the Area Headquarters in Philippines, must be established with a keen interest in captivating the international trade sector. A RHQ registered in Philippines acts as the administrative base for the foreign corporations established in the Asia-Pacific region and is authorized to supervise, inspect, and coordinate with the parent corporation's subsidiaries, branches, and other affiliates. The Regional Headquarters registered in Philippines must possess the following properties:

• Considered a separate legal personality from its parent company;
• Parent companies are entirely liable for the liabilities incurred by the RHQ in Philippines;
• The parent company is held responsible for managing the business operations of RHQ in Philippines;
• Not authorized to source or manage income in the Philippines economic zone;
• Regulates business performance as general, administrative, and communication centre for parent company;
• Source their market analysis within Philippines;
• Abided by the laws followed by the parent company;
• Authorized to conduct the business planning for the parent company, etc.

The RHQ registration in Philippines can be solidified under the Republic Act no. 8756, which defines the incentives and relevant licenses required for the Regional Headquarters registration in Philippines.

Master your Regional Headquarters Registration in Philippines

Are you planning to master your business expansion through Regional Headquarters registration in Philippines, which requires you to be updated regarding the legal know-how of Regional Headquarters registration in the Philippines?

Start mastering your foreign corporation to conduct business activities in association with international trade in the Asia-Pacific and other foreign regions to establish an administrative branch as Regional Headquarters in Philippines.

Rely on our regional headquarters registration services dedicated to amplifying the principal intention for facilitating the supervision, inspection, and coordination with the subsidiary and branch offices expanded in the APAC region. Choose Enterslice’s proficient and dedicated services to

Philippines RHQ Registration: Dive into Success Strategies

Choose our services for Regional Headquarters registration in Philippines to enjoy the fiscal and non-fiscal tax incentives underlining the successful tax strategies that ultimately benefit the RHQ registration in Philippines:

1. Fiscal Tax Incentives

The following is the list of fiscal tax benefits available to the RHQs in the Philippines:

• Ensures duty and tax-free importation of training equipment and associated materials;
• Enables exemption from local tax, fee, and other charges;
• Free disposal of equipment within two years of importation;
• Secures importation of branded motor vehicles;
• Relief from payment of corporate income tax;
• 0% VAT applicability for any sale or lease of goods, property, and services of the RHQ in Philippines;
• Exempt to pay branch profit remittance tax, etc.

2. Non-Fiscal Tax Incentives

The following is the list of non-fiscal tax incentives that you can avail of after the successful regional headquarters registration in Philippines:

• Expatriates can avail of the option for multiple entry visa in Philippines;
• Offered a preferential or withholding tax at the rate of 15% on the salaries, annuities, and other compensation of the foreign executives;
• Guaranteed travel tax exemption;
• No tax or duty fees are charged for the importation of used household goods and personal effects;
• Exempted to pay fees except for reasonable admin cost;
• Exempted to secure an Alien Certificate of Registration, etc.

3. Extensive Business Incentives

The following is the list of extensive business incentives enjoyed by foreign corporations intending for the Regional Headquarters registration in the Philippines:

• Reduced rates for RHQ registration in Philippines;
• Regional Headquarters is dedicated to supervising the foreign companies' global subsidiaries;
• Acts in the capacity of communication centre;
• Secures to conduct the proper market research;
• Sources raw material;
• Secures to provide adequate training to the employees;
• The parent company finances all expenses;

Prohibited Business Activities under Philippine Laws

The laws of Philippines mandate the prohibition of certain business activities to be performed on behalf of an RHQ registered in the Philippines. The list of exempted business activities prohibits an RHQ for the following:

• To derive income from the third party in the Philippines;
• To offer services to the third party in the Philippines;
• To directly manage the business operations of the subsidiaries and branches (if any);
• To directly deal with the registered clients of the parent company;
• To do business or source income from the home country, etc.

Key Requirements for RHQ Registration in Philippines

When you are sure about the choice between the Regional Headquarters registration and Regional Operating Headquarters registration in Philippines, choose our detailed services, which carefully examine and secure the entire process for regional headquarters registration in the Philippines. We hire a team of professionals mainly dedicated to securing a license to do business for foreign corporations intending to register as a regional headquarters in Philippines. The Securities and Exchange Commission only authorizes the license if the foreign corporations meet the following legal requirements.

1. Membership Insights

Foreign corporations must manage a regulated membership panel to break down the Regional Headquarters registration in Philippines. An RHQ registered in Philippines must incorporate the following members:

• At least 2 to 15 directors who are residents of the Philippines;
• At least four office bearers are required to act as President, Corporate Secretary, Treasurer, and Compliance Officer.

2. Minimum Foreign Equity Holding

The minimum foreign equity holdings that a domestic corporation in the Philippines must possess are divided into three different caps providing for either less than 40% of foreign equity holding, more than 40% of foreign equity holding, or 0% foreign equity holding in the Philippines.

3. Minimum Required Capital

The annual inward remittance of $50,000 US or equivalent is accepted as a minimum paid-up capital by the foreign company intending to register its regional headquarters in Philippines. The RHQ registration in the Philippines is regulated by the minimum capital requirement under the following foreign equity caps, as mentioned above.

• The minimum capital required for setting up a 0% foreign-owned RHQ in Philippines is approx. 5000 Philippine Pesos;
• The minimum capital required for setting up an RHQ with less than 40% foreign equity holdings is approx. 5000 Philippine Pesos;
• The minimum capital required for setting up an RHQ with more than 40% foreign equity holdings is approx. 4800000 Philippine Pesos;
• A reduced capital of approx. 2400000 Philippine Pesos is required in case the RHQ registered in Philippines employs more than 50 Philippine citizens;
• A reduced capital of approx. 2400000 Philippine Pesos is required for the employment of any advanced technology in the business operations of the Regional Headquarters in Philippines;
• A reduced capital of approx. 5000 Philippine Pesos is required for the RQHQ HQ engaged in exporting at least 70% of its product.

4. Mandatory Board Resolution

The mandatory requirement that must be secured for the successful Regional Headquarters registration in Philippines allows the parent company to authorize the establishment of RHQ by passing a resolution by the respective Board of Authorities.

5. Registered Office Address

Foreign corporations can easily secure and register their business or official address for the Regional Headquarters registration in Philippines with Enterslice. The official registered address is mandatory to comply with the registration process under the respective authorities, securing the BIR registration and the LGU licenses in a timely manner. We also provide you with an alternative option to virtually rent an office designed to serve as your business address in the Philippines.

6. Compulsory Documentation

You must maintain and compulsorily file specific documents for the Regional Headquarters registration in Philippines. The following is the list of compulsory documents and certifications required that we can assist with:

• Secures a Certificate issued by the Philippine Consulate or Embassy or the Philippine Commercial Officer or Department of Trade and Industry;
• Secures a Certificate issued by the Principal Officer of the foreign corporation;
• The facsimile of the registration data sheet;
• The facsimile of the endorsement or clearance by the respective government agencies;
• The facsimile of the Board of Investment endorsement certificate;
• The facsimile of the latest authenticated financial statements;
• The proof of inward remittances issued by the respective banks;
• The facsimile of the name verification slip;
• The affidavit of undertaking for changing the corporate name of the RHQ;
• The facsimile of the cover sheet, etc.

Simplified Steps for RHQ Registration in Philippines

Are you ready to expand your business through a secure process ensuring your RHQ registration in the Philippines? If yes, choose Enterslice's elaborate services, which are committed to simplifying the process for regional headquarters registration in the Philippines.

Step 1: Reserve Name for RHQ in Philippines

Name reservation is a crucial step for successful regional headquarters registration in Philippines. Enterslice hires a team of professionals who understand the necessary name reservation requirements for an RHQ in the Philippines. Enterslice process for Regional Headquarters registration in Philippines is deemed to consider the following name reservation mandates:

• Must check the name availability;
• It must be a unique name;
• Must not be already registered;

The Securities and Exchange Commission is the authorized government agency responsible for admitting and approving name reservation applications for Regional Headquarters in Philippines. To avoid losing the reserved name, you need to complete the registration process within the stipulated period immediately after the corporate business name is approved.

Step 2: Appoint an Agent

The next step is allowing you to appoint an agent acting as the representative for the Regional Headquarters in Philippines. The appointed agent must receive the summons and legal proceedings in favour of or against the RHQ registered in the Philippines. The following criteria must be met to be registered as a resident agent for the RHQ in Philippines:

• Must be a resident of the Philippines; or
• Must be a legally registered domestic corporation in the Philippines.

Secure your process for Regional Headquarters registration in Philippines with our professional simplifying the appointment of the resident agent through a board resolution and an agreement executed by the Board of Directors of the foreign company.

Step 3: Registration with the SEC

In the next step, you are required to register your regional headquarters with the Securities and Exchange Commission of the Philippines. At Enterslice, we try to secure your regional headquarters registration by creating an account in the SEC's well-developed online system. The application must be submitted online, and you must gather all the necessary documents and file them for the name verification unit.

Once the online application for regional headquarters registration in Philippines is approved and endorsed by the Board of Investment, the Securities and Exchange Commission is authorized to issue the Certificate of Registration. The Certificate of Registration legalizes the existence of regional headquarters for carrying out business activities in the Philippines.

Step 4: Secure BIR Registration

Our professionals have immense knowledge and understanding about the Bureau of Internal Revenue registration for your regional headquarters in Philippines. The BIR registration is mandatory to secure the tax obligations and the Tax Identification Number for your regional headquarters registration in Philippines. You can ensure the regulation of the following steps for BIR registration with our comprehensive services as provided:

• Files the BIR registration Form no. 1903;
• Ensures the submission of the documents about the registration of the RHQ in Philippines;
• Manages timely payment of the documentary stamp duty and company registration form;
• Secures the bank account details for BIR registration in the Philippines;
• Ensures registering your books of accounts;
• Secures BIR registration certificate for your regional headquarters in Philippines (Form no. 2303).

Step 5: Get BOI Endorsement

The BOI endorsement certificate must be obtained by the foreign companies intending for regional headquarters registration in Philippines. The BOI, which stands for Board of Investment, is liable to grant tax incentive packages to the local and foreign business holders in the Philippines. We secure the BOI registration by filing Form no. 501, along with the supporting documents and the BOI registration fees, to the respective government agency, i.e., the Department of Trade and Industry.

Step 6: Mandatory Post-Registration Requirements

Once you are done with Regional Headquarters registration in Philippines, you need to think about the post-registration legal mandates in the Philippines. Secure your post-registration requirements with Enterslice to eliminate the need for other service providers for any additional services.

1. Barangay Clearance Certificate

We also dedicate our services to gathering approval for a Barangay Clearance Certificate from the local office of the Barangay, which mandatorily requires the certificate of regional headquarters registration obtained from the SEC, two valid copies of the identification forms, and the registered address proof of your regional headquarters.

2. Necessary Business Permit

Our team of experts secures the necessary business permits and licenses for legal business activities in the Philippines. They properly understand the filing requirements at the municipal, local, or Mayor's office.

3. Employee Registration

The next step allows you to appoint a team of employees possessing relevant experience and knowledge by the business administration of the regional headquarters in Philippines. Also, the employees hired must be registered with the following government agencies providing for the Social Security System (SSS), the Philippines Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (HDMF or Pag-IBIG Fund).

4. Mandatory Reporting

The professionals hired at Enterslice are authorized to duly submit the following reports for your registered area headquarters in Philippines, at the office of the Board of Investments and the Securities and Exchange Commission of the Philippines:

• A general information sheet issued within 30 days from the date of issuance of the Certificate of Registration (prescribing the information concerning the names, positions, titles, and salaries of the officers and personnel of the area headquarters in Philippines;
• An annual report containing operational expenses accrued during the last financial year (the operational costs include the proof of inward remittances of at least $50,000 US or equivalent, expenditure, and the funds of the regional headquarters utilized as salaries, emoluments, fringe benefits, rental expenses, etc.)

Need Assistance with RHQ Registration in Philippines

Need Assistance with your RHQ registration in Philippines? Start streamlining and legally holding your operational efficiency through regional headquarters registration in Philippines, with our simplified and extensive procedure securing compliance with the Enterslice’s multi-jurisdiction business expertise in the Philippines.

Enterslice secures the smooth facilitation of business expansion in the Asia-Pacific Region and other significant parts of the world. We try to offer standard-quality services for Regional Headquarters registration in Philippines, as underlined below:

• Simplified and cost-effective business expansion services;
• Secures necessary business licenses and permits;
• Business name reservation;
• Appointment of resident agent;
• Ensures opening a Corporate bank account;
• Process the registration documents;
• Application for tax incentives;
• Enables HR consultancy;
• Secures Philippines VISA processing and extension;
• Provides advisory Assistance with cross-border business expertise;
• Prepares and supervises the bookkeeping and accounting of the regional headquarters in Philippines;
• Ensures filing application for BIR registration, etc.

Tailor your business expansion with our team of professionals possessing a wealth of experience and knowledge of the market expertise.