A branch is an extension of a foreign company carrying out undertakings in another country following the rules of that country, in this case, the Philippines. Our company formation advisors in the Philippines can offer more information on the establishment of a branch office.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Philippines law |
Best Used For | Expanding the company’s activities to the Philippines. |
Minimum share capital for the branch in Philippines | Minimum capital can apply according to industry and size of the branch; an annual registration fee and other fees apply. |
| Time frame for the incorporation (approx.) | About 1 to 2 months. |
| Documents to be filed by the parent company when they establish a branch in the Philippines | Special license for the branch, the parent company’s Articles of Incorporation, list of shareholders, proof of registration in its country of origin, and financial information. |
| Management (Local/Foreign) | Foreign |
| Legal representative required (YES/NO) in the Philippines | Yes |
| Local bank account (YES/NO) | Yes |
| Independence from the parent company | The branch is not a separate/independent entity from the parent company. |
| Liability of the parent company | The parent company is fully liable for the debts and obligations of its Philippines branch, |
| Corporate tax rate in Philippines | 25% plus 15% tax on the profits remitted to the foreign tax office (after tax). |
| Annual accounts filing requirements | Filing and disclosure obligations apply. |
| Possibility of hiring local staff | Can hire staff according to the local rules. |
| Travel requirements for incorporating branch/subsidiary | Yes |
| Double tax treaties | Access to around 40 tax treaties, according to the provisions of these DTAs. |
Table of Contents
What are the steps for opening a branch in Philippines in 2026?
To open a branch office in the Philippines, the foreign company must first prepare the parent company documents and apply for a license to do business with the Securities and Exchange Commission.
Here are the steps you need to follow:
- choose the branch office name and check if it can be used in the Philippines;
- appoint one of our resident agent who will receive official notices on behalf of the foreign company;
- prepare the parent company’s documents, such as the articles of incorporation, bylaws, board resolution and audited financial statements;
- prepare the SEC application for a foreign corporation establishing a branch office;
- remit the required assigned capital to the Philippines and obtain proof of inward remittance;
- file the application and supporting documents with the Securities and Exchange Commission;
- pay the applicable SEC filing fees;
- obtain the license to do business as a branch office;
- register the branch with the Bureau of Internal Revenue for tax purposes;
- secure the local business permits required by the city or municipality where the branch will operate;
- open a local bank account and complete employer registrations if the branch will hire employees.
In practice, the process should start with a review of the foreign company’s activity, capital requirements and documents, because these will influence the registration timeline and the approvals needed after the SEC license is issued.
Our team also includes specialists who can assist investors after the registration of their branch. Our accountant in the Philippines will provide services and assistance for the timely annual financial submissions and tax payments by branches.
What are the main characteristics of branches in the Philippines in 2026?
As extensions of foreign companies, branch offices will be bound to undertake only the activities of the parent company. Also, the foreign business will be liable for the debts and obligations of the branch office.
All foreign companies opening branch offices in the Philippines are required to appoint a local agent to complete the registration procedure.
We also invite you to watch our video on how to establish a branch in the Philippines:
What are the documents needed to register a branch office in the Philippines?
Foreign companies are required to file the following documents with the SEC upon the opening of a Philippines branch in 2026:
- the prescribed form issued by the SEC and which needs to be filled out;
- the proof of the name reservation issued by the Philippines Trade Registrar;
- the notarized copy after the foreign company management board’s decision to create the branch office;
- the notarized financial statements of the parent company for the last year;
- the drafted and notarized incorporation documents of the Filipino branch office;
- the registration data information and the proof of depositing the share capital;
- the documents through which the local representative of the branch is appointed.
All documents need to be translated into English when they are originally issued in a different language.
In some cases, an authenticated copy of a certain document can be required (such as an authenticated copy of the foreign company’s Articles of Incorporation) and in this case, the authentication is performed by a notary.
The SEC form to be filled out when submitting the application form depends on the type of business the foreign legal entity is setting up in the Philippines (stock branch office, stock representative office, or non-stock branch or representative office – relevant for those that set up foundations or NGOs).
What are the financial ratio requirements for stock Philippine branches?
Another relevant issue foreign companies should take into account when they set up a stock branch in the Philippines is the financial ratios required for this type of establishment:
- the solvency ratio needs to have a benchmark value of 1:1 (its calculation formula being total assets divided by total liabilities);
- the liquidity also needs to have a 1 to 1 value, calculated as current assets divided by current liabilities;
- lastly, the debt-to-equity ratio needs to have a benchmark value of 3 to 1 (calculated as total liabilities divided by equity).
Our team specializing in company formation in Philippines will give you more details about the relevant financial requirements for branches, as well as details about the mandatory documents (including the need to translate or authenticate certain documents).
What is the difference between stock and non-stock branch office?
The main difference is therefore the purpose of the foreign parent company and the type of activities the Philippine branch will perform.
A stock branch office in the Philippines is opened by a foreign stock corporation, usually for commercial or income-generating activities. It can carry out business operations in the Philippines, issue invoices, earn local income and operate as an extension of the foreign parent company.
A non-stock branch office is opened by a foreign non-stock corporation and is generally used for non-commercial, charitable, educational, religious, professional, civic or similar purposes. Its activity is not focused on distributing profits to shareholders or members.
In both cases, the branch is not a separate legal entity from the foreign parent company and must obtain the proper license to do business from the Securities and Exchange Commission.
Other services
Our company registration agents in the Philippines can explain if other requisites apply in terms of branch office incorporation. Do you want to open a branch in another country, such as Bahrain? We can put you in contact with our partners.
In case you are interested in opening a company in Vietnam or extending your business to this jurisdiction, we can put you in contact with our partners.
For assistance with the registration of a branch office in 2026, contact our company registration experts in the Philippines!