Opening a international business presence in the Philippines demands a clear understanding of the administrative framework mandated by the Securities and Exchange Commission (SEC). One of the essential documents in this process is the affidavit of branch office Philippines. This document serves as verified proof of the head office's commitment to expand within the local market.
The Role of the Affidavit
The main goal of the affidavit is to confirm that the foreign corporation is solvent and plans to honor its debts in the Philippines. In the absence of this sworn declaration, the SEC is unable to issue the essential license to do business locally.
What to Include
A well-drafted affidavit concerning a branch office typically contains various sections:
Board Resolution Reference: The document must mention that the governing body sanctioned the formation of the Philippine branch.
Solvency Statement: The signer must swear that the firm is financially stable.
Local Representative: It identifies the person who will accept official notices on account of affidavit branch office philippines the branch.
Legalizing the Document
Since the parent company is frequently located overseas, the affidavit must be signed in the home country. Nevertheless, for it to be accepted in the Philippines, it requires apostillization.
If your region is a member to the Hague Convention, a basic apostille from your government authority is sufficient. If not, affidavit branch office philippines you will need to have it certified by the Philippine Consulate in your location.
Common Challenges
Several investors encounter hurdles due to small oversights in the affidavit branch affidavit branch office philippines office Philippines. Common issues consist of:
Wrong corporate names.
Neglecting to mention the authorized capital requirements.
Utilizing invalid templates that fall short affidavit branch office philippines of current SEC rules.
Next Steps for Success
After the affidavit is finalized, it needs to be filed together with other forms affidavit branch office philiappines like the Authenticated Articles of Incorporation and Financial Statements. Consulting an expert legal firm is strongly advised to verify complete compliance with Republic Act No. 11232.
Final Thoughts
Overall, the affidavit of branch office Philippines is more than a formality; it is a vital step for acquiring your business permit. By ensuring that the language is accurate and the legalization is duly processed, you can smoothly transition your enterprise into the growing Philippine economy.