What is a Branch Office?
A Branch Office is an extension of an already existing foreign business entity and as such, liability can be extended to the foreign parent.
A Branch Office can generate revenue from the Philippines like a Domestic Corporation. A Representative Office cannot generate revenue from the Philippines.
A Branch Office is 100% foreign owned and controlled by its foreign parent and can be capitalized with USD 200,000 with an initial inward remittance.
A Branch Office can be set up with only the Resident Agent specified, which FCB Law Office can offer should it be needed in your situation.
What are the Requirements for a Branch Office?
A Branch Office is an extension and can be set up only with a Resident Agent instead of a Board of Directors. It can only begin from its foreign parent’s Articles of Incorporation.
Foreign Company Information
Foreign Company documents will be needed as well as information on the setup of the Philippine entity so that we can properly determine what is needed and file the registration correctly.
Resident Agent
A Resident Agent must be decided upon so that there is a specified person to receive summons on behalf of the company. FCB Law Office can offer this service to you as part of our undertaking should it be needed in your situation.
Physical Location
A physical location has to be determined as this is required at the point of registration and should be certain given that it is very difficult and cumbersome to change should you later decide to change it. A virtual office can serve.
Capitalization Cost
A Branch Office is capitalized at USD 200,000 or USD 100,000 in specific circumstances subject to industry regulations, which can increase this cost depending on the situation and the desired industry.
Atty Britanico and a
Branch Office in the Philippines
A Branch Office allows a corporation organized abroad to do business and generate revenue in the Philippines. In comparison to a domestic subsidiary, it has the advantage of being under the home office’s direct control and management.
A Branch Office is the right choice for those who want full control and who also want to generate revenue in the Philippines. FCB Law Office will be happy to assist you.
Atty Britanico, Founder
What are the Advantages & Disadvantages of a Branch Office?
A Branch Office only needs a Resident Agent instead of a full Board so it is easier administratively. Additionally, income tax is only applied on PH generated revenue.
Liability extends to the parent
Only needs a Resident Agent
Full Foreign Control
Subject to income tax only on PH income
What is the Incorporation Process?
Email Us with detail of what you would like to do and what your goals are and include details on what the Philippine Branch Office would be doing.
Assessment FCB Law Office will assess the information given and determine whether a Branch Office is the correct setup for you or whether a Domestic Corporation or a Representative Office is better.
Signing of Registration Documents The Registration documents must be signed and the hard copies sent to us so that we can properly file the registration for the company.
Registration at the SEC The Branch Office must first be registered at the SEC as this is the first document that is needed and it is a requirement to complete the other steps.
Registration at the BIR The Branch Office papers must also be submitted to the Bureau of Internal Revenue so that its TIN Number and the COR can be given.
Registration at City Hall The Branch Office must also be registered at City Hall to receive its Mayor’s Business Permit and be recognized at the local level.
Registration at Govt Statutory Agencies FCB Law Office will register the Branch Office with the mandatory government agencies for employee benefits such as the SSS, Pag-ibig, and Philhealth.
Further Reading
Denying Paternity in the Philippines When a Wife’s Child is Not Her Husband’s
Denying paternity in the Philippines requires filing a Petition to impugn legitimacy which must be filed with the court within a brief window of time, beyond which the action is barred by law. The legitimacy of the child will no l...
Guide to Child Support in Philippine Law
To File a case for Child Support in the Philippines you will need to prepare documents that prove the child’s paternity, show the Spouse’s financial capacity and itemize the child’s expenditures. Read more…...
How to Reconstitute a Philippine Land Title
In this post, I go through the process of how to ask the Registry of Deeds to replace its copy of your title. This process is called reconstitution and I go through the step by step as well as providing detailed information on wha...
Child Custody and Child Travel To and From the Philippines
Child custody issues are often intertwined with concerns about the child’s travel into and out of the Philippines. This discusses the interplay between the two...
Frequently Asked Questions
What is a Branch Office?
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.
Can a Branch Office generate revenue in the Philippines?
How is a Branch Office different from a Representative Office?
Who can own and control a Branch Office?
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.
How much capital is required to set up a Branch Office?
Do I need a Board of Directors for a Branch Office?
What is a Resident Agent?
A Resident Agent is a person designated to receive a summons and legal documents on behalf of the Branch Office. They act as the official contact person and representative of the company in the Philippines.
Do I need a physical location for the Branch Office?
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.
