Non-profit organizations play a critical role in fostering social welfare, education, and community development in the Philippines. If you’re planning to establish one, understanding the requirements for SEC registration of non-profit organization is essential. This guide will walk you through the process step-by-step, ensuring compliance and a smooth registration experience.
Why Register with the SEC?
Registering your non-profit organization with the Securities and Exchange Commission (SEC) is a legal requirement in the Philippines. It formalizes your organization’s status, allowing it to operate lawfully and gain access to benefits such as tax exemptions and donor incentives. Without SEC registration, your organization cannot legally function as a non-stock, non-profit entity.
Step-by-Step Guide to SEC Registration
1. Prepare Your Articles of Incorporation
The Articles of Incorporation is the cornerstone document for your organization. It must clearly state:
- The non-profit nature of your organization.
- Its primary purpose (e.g., educational, charitable, or cultural).
- The names and addresses of incorporators and trustees.
- The organization’s operational guidelines.
This document must be notarized before submission.
2. Draft Your By-Laws
By-laws detail how your organization will function. This includes:
- Membership rules.
- Voting procedures.
- Meeting schedules.
- Fund usage policies.
Ensure these align with your Articles of Incorporation and are also notarized.
3. Secure a Name Verification Slip
Before proceeding, verify that your chosen name is unique and complies with SEC standards. For foundations, the name must include “Foundation.” For other non-profits, it should reflect their mission.
4. Gather Supporting Documents
You will need:
- Proof of office address.
- Valid IDs of incorporators and trustees.
- A notarized Treasurer’s Affidavit confirming initial contributions or donations.
For foundations, a minimum contribution of PHP 1,000,000 is required, evidenced by a notarized Certificate of Bank Deposit.
5. Submit Your Application
File all documents with the SEC either online or in person. Ensure accuracy to avoid delays during processing.
6. Pay Registration Fees
Fees vary depending on the type and size of your organization. Check the SEC website for updated rates.
7. Await Approval
The SEC will review your application and may request clarifications or additional documents. Upon approval, you’ll receive a Certificate of Incorporation—your official proof of registration.
Post-Registration Requirements
1. Register with Other Agencies
After securing SEC registration:
- Register with the Bureau of Internal Revenue (BIR) for tax exemptions.
- Depending on your activities, register with agencies like the Department of Social Welfare and Development (DSWD).
2. Maintain Compliance
Non-profits must file annual financial statements and General Information Sheets (GIS) with the SEC to remain compliant.
Key Differences Between Foundations and Non-Profit Organizations
| Aspect | Foundation | Non-Profit Organization |
|---|---|---|
| Minimum Contribution | PHP 1,000,000 | None |
| Naming Requirement | Must include “Foundation” | No specific naming requirement |
| Primary Purpose | Charitable grants/endowments | Broad range (educational, cultural, etc.) |
Final Thoughts
Navigating the requirements for SEC registration of non-profit organization may seem daunting at first, but careful preparation can make all the difference! Whether you’re establishing a foundation or another type of non-profit entity, following these steps ensures legal compliance and positions your organization for success.
For detailed guidance on the process or legal assistance tailored to your needs, visit Lawyers in the Philippines. Their expertise can help you navigate every step with confidence!