Branch Office
Branch Office
A Branch Office is a 100% foreign-owned extension of a parent comapany which does not have a separate legal personality from its parent. It can earn a revenue in the Philippines and requires captalization of USD 200,000. It can be set up with only the Resident Agent as it does not require a full board, thus making governance easier.
WHAT ARE THE ADVANTAGES & DISADVANTAGES OF A BRANCH OFFICE?
LIABILITY EXTENDS TO FOREIGN PARENT
A Branch office in the Philippines does not have a separate legal identity from its parent.
FULL FOREIGN CONTROL
A Branch Office can be 100% foreign owned and can engage in profit-generating activities in the Philipines.
RESIDENT AGENT ONLY
Foreign corporations operating in the Philippines must designate a resident agent to receive official legal summons.
SUBJECT TO INCOME TAX ONLY ON PH INCOME
A Branch Office is subject to Philippine taxes, including corporate income tax, VAT, and withholding taxes.
Foreign Company Info
Resident Agent
Physical Location
Capitalization Cost
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
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FREQUENTLY ASKED QUESTIONS
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.
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.
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.
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.
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.
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.
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.
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.
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.
Yes, FCB Law Office can offer the services of a Resident Agent if needed.