Attorneys of the Philippines | FCB Law Offices

Question 1

What is a Branch Office?

Accepted Answer

A  Branch Office is an extension of an existing foreign business entity  in the Philippines. It operates as a local office and is considered an extension of the foreign parent company.

Question 2

Can a Branch Office generate revenue in the Philippines?

Accepted Answer

Yes, a Branch Office can generate revenue from business activities conducted in the Philippines, similar to a Domestic Corporation with the difference being that it is considered an extension of its foreign parent.

Question 3

How is a Branch Office different from a Representative Office?

Accepted Answer

Unlike a Branch Office, a Representative Office is not allowed to generate revenue in the Philippines. It serves as a liaison or coordination office for the parent company and is limited to non-income generating activities.

Question 4

How much capital is required to set up a Branch Office?

Accepted Answer

A Branch Office can be capitalized with a minimum of USD 200,000 as an initial inward remittance. However, specific circumstances and industry regulations may require lower capitalization of USD 100,000.

Question 5

Do I need a Board of Directors for a Branch Office?

Accepted Answer

No, a Branch Office does not require a Board of Directors. It is established and operated under the authority of the foreign parent company. Only a Resident Agent is needed to represent the Branch Office.

Question 6

What is a Resident Agent?

Accepted Answer

A  Resident Agent  is a person designated to receive summons and legal documents on behalf of the Branch Office. He or she acts as the official contact person and representative of the company in the Philippines.

Question 7

Do I need a physical location for the Branch Office?

Accepted Answer

Yes, a physical location is required for the registration of a Branch Office in the Philippines. The chosen location should be specified during the registration process and is difficult to change once established. A virtual office can fulfill this requirement.

Question 8

What documents and information are needed to set up a Branch Office?

Accepted Answer

Foreign company documents and information about the Philippine entity setup are required to determine the necessary requirements for registration. This includes details about the foreign parent company, its Articles of Incorporation, and other relevant information.

Question 9

Can FCB Law Office provide assistance with the Resident Agent service?

Accepted Answer

Yes, FCB Law Office can offer the services of a Resident Agent if needed.

Question 10

Who can own and control a Branch Office?

Accepted Answer

A Branch Office is  100% foreign-owned  and controlled by its foreign parent company. The foreign parent company has full ownership and control over the operations and management of the Branch Office.