Hiring in the Philippines: Set-up a Branch Office or a Representative Office in the Philippines

A branch office and a representative office are mere extensions of a Foreign Corporation who seeks to establish its presence in the Philippines. The foreign corporation's head office must prove its legal existence in its country of origin, its financial soundness, and its authorization to set up a branch or representative office in the Philippines. The branch or representative office, on the other hand, needs to appoint a resident agent in the Philippines who will be in charge of receiving summons and legal processes. This allows the SEC and other entities to obtain jurisdiction over the foreign company. As such, foreign corporations setting up a branch office or a representative office in the Philippines need to secure licenses from the Securities and Exchange Commission (SEC) to do business.

A Branch Office is defined as an extension of a foreign corporation that carries out the business activities of its head office from abroad into the Philippines. While a Representative Office is defined as a business structure that acts as a local liaison office for a foreign corporation that seeks to establish a corporate presence in the country without engaging in income-generating activities. From the point of view of a Foreign Corporation, it is important to assess which among the two types of offices cater to their specific needs.

Below is an overview of the requirements in setting up a branch and representative office in the Philippines.

Requirements	Branch Office	​Representative Office
1. Accomplished SEC Application Form	Required	​Required
2. Board Resolution of Authorization to Establish an Office in the Philippines from the Parent Company	​Required	Required
3. Certified Copies of the Articles of Incorporation of the Parent Company (with an English translation if in a foreign language)	​Required	​Required
​4. Resident Agent	Required	Required
​​5. Minimum Capital Investment	USD 200,000.00	USD 30,000.00​
6. Latest audited financial statements	Required	Required
7. Government Securities	Required	Not Required
8. Board of Directors	Not Required	Not Required
9. Corporate Officers	Not Required	Not Required

Setting up a Branch Office or a Representative Office in the Philippines has been part of the business strategy of many successful foreign firms taking into consideration the growing economy and the inflow of foreign investments in the Philippines. If you are one of those who also plans to set-up a Branch or Representative Office in the Philippines, contact our law firm so we can assist you. Send us an email (legal@lawfirmcebu.com) or visit us at Elnar Lape Lastimoso & Associates Law Office Cebu - Unit 9, Albulario Building II, General Maxilom Avenue, Cebu City 6000

Elnar Lape Lastimoso & Associates - Law Firm Cebu | Cebu Lawyers

Unit 9, Albulario Building II, General Maxilom Avenue, Cebu City 6000

legal@lawfirmcebu.com | (+63) 905 405 2952 / (032) 340 4998