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.
Why You Need This Document
The primary goal of the affidavit is to confirm that the foreign corporation has the financial capacity 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 board of directors sanctioned the creation of the Philippine branch.
Solvency Statement: The affiant certifies that the corporation is solvent.
Resident Agent Appointment: It designates the individual who will handle legal summons on affidavit branch office philippines account of the branch.
The Notarization and Authentication Process
As the parent company is often located abroad, the affidavit should be executed in the country of origin. However, affidavit branch office philippines for it to be recognized in the Philippines, it must undergo legalization.
Provided that your country is a party to the affidavit branch office philippines Hague Apostille, a standard apostille issued by your local authority will suffice. Alternatively, affidavit branch office philippines you must get it authenticated by the Philippine Embassy nearest to your area.
Potential Pitfalls
Numerous entrepreneurs experience delays because of technical errors in the affidavit branch office Philippines. Frequent problems are:
Wrong corporate names.
Neglecting to mention the authorized capital amounts.
Applying outdated formats that fall short of current SEC rules.
Next Steps for Success
After the affidavit is finalized, it should be submitted together with other forms like the Authenticated Articles of Incorporation and Bank Certificates. Consulting an expert legal firm is strongly advised to guarantee complete compliance with Republic Act No. 11232.
Final Thoughts
Overall, the affidavit of branch office Philippines is not just a formality; it is a vital affidavit branch office philippines step for acquiring your business permit. By verifying that the language is precise and the authentication is correctly processed, you can quickly expand your business into the thriving Philippine market.