A Guide on Starting a Business in the Philippines

Our professionals provide a specialized services package for foreigners wanting to open a company in Philippines.

Which types of businesses can be registered in the Philippines?

Before starting a business in the Philippines, you must determine the correct form for your activity. The principal types of companies are:

• sole proprietorship – a one-man corporate structure, which works well with many small businesses;
• partnership — a company co-owned by two or more individuals;
• stock corporation – one of the top choices for investors who prefer to conduct their business through a company with share capital;
• non-stock corporation — generally for non-profit, charitable, educational, religious or similar purposes;
• one Person Corporation – a company where one stockholder is one and available under the Revised Corporation Code;
• branch office – used by a foreign company who wants to conduct business activities in the Philippines;
• representative office — used by foreign company for non-income-generating activities (e.g., promotion, liaison work, etc.);
• regional headquarters or regional operating headquarters – organizations that multinational firms use to facilitate their presence in the Philippines.

What is the process of company formation in the Philippines?

The process usually includes the following steps:

• initial consultation – we talk about what you want, whether to start a local business or expansion abroad, a business structure is a more efficient for tax or both;
• structure recommendation – based on the initial talk, we recommend you the most suitable business form;
• documentation creation — we prepare incorporation documents and other forms, you only need to read and sign them;
• filing and registration – we submit the documents to the authorities, and monitoring the process providing updates until the registration is completed;
• tax and post-incorporation – once registered, our accountant in Philippines works with tax registration, local permits, bank account setup and other compliance;
• business permits & licenses – we check if you need permits or clearances for business operations.

Checkout our video on how open a company in the Philippines:

What documents are required for company formation in the Philippines?

To keep the process efficient, we usually request the essential documents and information at the begging. This step helps us review the case and start the procedurecorrectly.

The main documents for company registration in Philippines include:

• valid identification documents for the shareholders, directors and authorized representatives;
• proof of address (recent utility bill or bank statement);
• proposed company name (we will check availability before registration);
• basic incorporation details like business structure, business activity, ownership details etc.

Depending on the company type, we may request additional documents.

What services can our Philippines company formation agents give you?

Our services can assist in the following areas:

• we work with you to figure out the best business structure for your company in the Philippines;
• we take care of preparing your incorporation documents and, if necessary, we can also notarize or authenticate them for you;
• we handle the Bureau of Internal Revenue (BIR) registration such as TIN and relevant tax registrations, including VAT registration if required;
• we offer assistance with employer registration with SSS, PhilHealth and Pag-IBIG;
• our accountant in Philippines provides tax advisory services, support for tax compliance, and advice on structuring your taxes efficiently;
• we assist you in obtaining any local business permits, clearances, and specific licenses that you might need.

What are the main costs for company registration in the Philippines?

The cost of our incorporation services starts at USD 1,500, which is our most affordable base package. The final cost can vary depending on the company type, jurisdiction, business activity and level of support required.

Official government calculates fees independently as they vary based on the selected structure and registration requirements. Once we confirm the relevant details, we give you the exact figures.

We also offer our clients the option to opt for optional add-on services as needed:

• registered address services;
• nominee services;
• bank account assistance;
• tax registration;
• ongoing compliance support;
• accounting and bookkeeping.

We use a modular pricing model providing clients only the services they actually require to pay.

Do you need a license when starting a business in the Philippines?

One of the most important aspects of Philippines company formation is related to the licensing requirements which one must comply with. Not all businesses need local permits. The requirements depend on the city, business activity and company’s location.

Here are the main licenses to be obtained when opening a company in the Philippines:

• the mayor’s permit;
• the sanitary permit;
• the environmental permit;
• the fire permit;
• the Barangay Clearance.

Out of these, one of the most important is the Barangay Clearance. Once these are obtained, where the industry requires it, special licenses must be obtained with other relevant authorities.

You can obtain more information on the business permits and licenses required from our experts in company formation in Philippines.

Do company officer residency requirements apply in the Philippines?

Yes. When opening a business in the Philippines, foreign investors should consider the following:

• directors may be foreign nationals;
• the treasurer must be a resident of the Philippines;
• the corporate secretary must be both a Filipino citizen and a resident of the Philippines;

If you plan to move to Philippines and start a business here, our team can help you understand the available options according to your residency.

We can assist you in company formation in the Philippines, from business structure selection, to ongoing compliance. Contact us for more details!