Setting up a foreign business entity in the Philippines necessitates a thorough understanding of the regulatory framework set by the Securities and Exchange Commission (SEC). One of the pivotal documents in this journey is the affidavit regarding branch office Philippines. This legal instrument functions as official proof of the parent company's decision to operate within the archipelago.
Understanding the Importance
The core objective of the affidavit is to verify that the parent corporation has the financial capacity and intends to meet its liabilities in the Philippines. Without this document, the SEC will not issue the essential license to do business locally.
What to Include
A well-drafted affidavit concerning a branch office typically contains multiple sections:
Board Resolution Reference: The text must mention that the governing body authorized the formation of the Philippine branch.
Financial Soundness: The signer must swear that the company is financially stable.
Local Representative: It identifies the legal counsel who will accept court documents on behalf of the branch.
Legalizing affidavit branch office philippines the Document
Since the head office is usually based outside, the affidavit needs to be finalized in the home country. Regardless, for it to be valid in the Philippines, it needs authentication.
Provided that your country is a signatory to the Hague Agreement, a simple apostille issued by your local authority will suffice. Alternatively, you must get it authenticated affidavit branch office philippines by the Philippine Embassy nearest to your area.
Frequently Noted Issues
Many entrepreneurs experience delays because of technical errors in the affidavit branch office Philippines. Frequent problems are:
Incorrect affidavit branch office philippines company names.
Forgetting to state the registered capital amounts.
Using obsolete forms that do not meet current SEC standards.
Finalizing Your Setup
Once the affidavit is ready, it must affidavit branch office philippines be presented alongside other papers like the Certified Bylaws and Financial Statements. Hiring affidavit branch office philiappines a Philippine-based attorney is highly recommended to ensure full alignment with the Revised Corporation Code.
Conclusion
To conclude, the affidavit of branch office Philippines is not just a piece of paper; it is a foundational requirement for obtaining your business permit. By verifying that the text is precise and the authentication is correctly processed, you can quickly expand your operations into the thriving Philippine market.