Registering a business under the Philippine Board of Investments (BOI) offers various incentives, including tax exemptions, duty-free importation, and investment assistance. The BOI, under the Department of Trade and Industry (DTI), promotes investments in preferred economic activities listed in the Investment Priorities Plan (IPP). This guide provides a step-by-step process to register a business with the BOI and avail of its incentives.
Step 1: Determine Eligibility for BOI Registration
Before applying, check if your business qualifies under the BOI’s Investment Priorities Plan (IPP). Eligible businesses generally include:
Export-oriented enterprises (at least 70% of production for export)
Agribusiness and agricultural processing
Infrastructure and logistics
Renewable energy and green projects
Manufacturing and industrial activities
Information technology and business process outsourcing (IT-BPO)
Foreign-owned businesses must comply with foreign ownership restrictions under the Foreign Investment Act (RA 7042) and the Foreign Investment Negative List (FINL).
Step 2: Prepare the Required Documents
Prepare the following documents for BOI registration:
BOI Application Form (downloadable from the BOI website)
Project Study/Business Plan, including projected income, employment generation, and market feasibility
Articles of Incorporation and By-Laws (for corporations)
DTI Certificate of Registration (for sole proprietorships)
Securities and Exchange Commission (SEC) Registration (for corporations and partnerships)
Taxpayer Identification Number (TIN) and BIR Certificate of Registration
Audited Financial Statements (if applicable)
Step 3: Submit the Application to BOI
Submit the application and supporting documents to the BOI’s Investment Assistance Service (IAS).
Pay the application fee, which varies based on project size and type.
The BOI will conduct an evaluation and due diligence to verify project feasibility.
Step 4: Attend BOI Interviews and Presentations
The BOI may schedule an interview or require a business presentation to assess compliance with IPP qualifications.
Be prepared to justify how your business contributes to economic growth, employment, and sustainability.
Step 5: Await BOI Approval and Registration
The BOI will issue a Board Resolution approving or denying the application.
If approved, you will receive a Certificate of Registration, granting BOI incentives.
Step 6: Comply with Post-Registration Requirements
After registration, businesses must:
Submit Annual Reports to BOI, detailing business operations and compliance with incentives.
Meet local and national tax obligations, including BIR filings.
Adhere to investment commitments specified in the registration.
Benefits of BOI Registration
BOI-registered businesses can enjoy:
Income Tax Holiday (ITH) (4-6 years of tax exemption, depending on industry)
Duty-Free Importation of capital equipment, raw materials, and spare parts
Tax Credits for certain expenses
Employment of Foreign Nationals, subject to BOI rules
Simplified Customs and Immigration Processing
Conclusion
Registering with the BOI can provide significant advantages for businesses operating in priority industries. However, compliance with BOI regulations and investment commitments is crucial to maintaining these benefits. Consulting a business lawyer or investment specialist can help ensure a smooth application process and adherence to legal requirements.
Navigating the business landscape in the Philippines can be both rewarding and intricate. Whether you’re embarking on a new venture or scaling up, ensuring that your corporate endeavors are in line with local regulations is paramount.
At CBOS Business Solutions Inc., we pride ourselves on simplifying these processes for our clients. As a seasoned professional services company, we offer comprehensive assistance with SEC Registration, Visa processing, and a myriad of other essential business requirements. Our team of experts is dedicated to ensuring that your business is compliant, well-established, and ready to thrive in the Philippine market.
Why venture into the complexities of business registration and compliance alone? Allow our team to guide you every step of the way. After all, your success is our commitment.
Get in touch today and let us be your partner in achieving your business goals in the Philippines.
Email Address: gerald.bernardo@cbos.com.ph
Mobile No.: +639270032851
You can also click this link to schedule a meeting.
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