Legal · Business Model
Business model & legal structure
Last updated: 11 July 2026
Automatika operates under a cross-border remote services model. Under this model, a United States service provider contracts directly with clients, including Philippine clients, and delivers automation consulting, software implementation, training, and support through remote systems.
Unless a signed agreement states otherwise, the contracting and invoicing entity is Automatika Consulting, a United States business headquartered in Albuquerque, NM. Automatika PH is the Philippine-facing subsidiary brand and client channel of Automatika US. It is not represented as a separate Philippine SEC-registered corporation, Philippine branch, representative office, resident agent, or BIR-registered local taxpayer.
This page is a business-position statement for vendor onboarding, procurement review, and legal intake. It is not legal, tax, accounting, or procurement advice for any client. Clients should review their own obligations with their counsel, accountant, or procurement team.
1. What the model is called
The model is best described as a cross-border remote services model, or more specifically, a US contracting entity with Philippine-facing market support. The legal and commercial contract sits with the US entity; the Philippine-facing brand helps with market communication, client education, onboarding coordination, and service delivery support.
2. Contracting authority
Proposals, statements of work, invoices, payment terms, account access terms, and legal notices are issued by or for the US contracting entity unless the written agreement expressly names another entity.
No Philippine-facing team member, brand page, support channel, partner label, or local marketing statement should be read as creating a Philippine corporation, Philippine branch, local agency, resident agency, or authority to bind Automatika outside the written agreement. Any exception must be in writing and approved by the US parent / contracting entity.
3. Philippine registration position
A Philippine customer relationship alone does not determine whether a foreign company is “doing business” in the Philippines. Philippine law treats that question as fact-specific. Relevant facts may include whether the foreign company opens a local office or branch, appoints local representatives under its full control, participates in local management or control, or performs acts implying continuity of local commercial dealings.
Automatika's current model is designed not to create a Philippine branch, local contracting office, resident agent, or locally managed business presence. References to Philippine operations, Philippine support, Philippine market coverage, or remote team coverage refer to market support and delivery coordination, not a licensed Philippine place of business.
On that basis, Automatika does not register a Philippine corporation, Philippine branch, or local BIR taxpayer record merely because a Philippine client purchases services from the US contracting entity. If the operating facts materially change, Automatika will review the registration question with counsel.
4. What this model does not claim
- Automatika does not claim that every foreign provider can avoid Philippine registration.
- Automatika does not claim that Philippine registration can never become necessary.
- Automatika does not claim that a client has no Philippine tax, withholding, VAT, or documentation obligations.
- Automatika does not issue Philippine BIR Official Receipts or Philippine BIR sales invoices under the current US-company engagement model.
- Automatika does not allow marketing labels, partner labels, or Philippine-facing brand language to override the written contracting entity.
5. Invoicing and receipts
In the standard engagement, Automatika issues a commercial invoice from the US contracting entity. A Philippine BIR Official Receipt or Philippine BIR sales invoice is not issued unless a separate Philippine-registered entity is expressly named in the signed agreement.
If a client's accounting policy requires a Philippine SEC/BIR-registered vendor, BIR Official Receipt, or local sales invoice, that is a client-side procurement requirement and should be raised before signing. Automatika's current cross-border remote services model may not satisfy that internal requirement.
6. Client tax handling
Business registration and tax treatment are separate issues. Automatika remains responsible for its US tax obligations. A Philippine client may separately need to review withholding, VAT, documentation, treaty relief, expense deductibility, or source-of-income treatment with its own accountant or Philippine tax counsel.
Automatika can provide US business details, vendor information, and commercial invoices for onboarding. Automatika does not decide, certify, or guarantee a client's Philippine withholding-tax position.
7. Facts that would require review
Automatika would revisit the Philippine registration analysis if the business model materially changed, including if Automatika:
- opened a Philippine branch, representative office, or physical office;
- appointed a local agent or representative with authority to bind the company or accept legal service for it;
- created a Philippine contracting entity or local collection structure;
- hired personnel to conduct locally managed operations rather than remote support and delivery coordination;
- stored inventory, operated local facilities, or conducted regulated activities on Philippine soil; or
- otherwise created facts that counsel considers a Philippine business presence or permanent establishment risk.
8. Legal contact and routing
Legal, procurement, registration, tax-documentation, or vendor-onboarding questions should be emailed to . Messages to that address are routed to the parent company / US contracting entity for review and response.
9. References
- Revised Corporation Code of the Philippines, Title XV - foreign corporations and licenses to transact business.
- IRR of Republic Act No. 11647 - “doing business” indicators and listed exclusions.