If you're setting up a business in the Philippines, one of your first and most important considerations will be the total setup cost. A common oversight is to focus primarily on the official incorporation fee. However, it's essential to realize this number represents only a minor portion of the expenses associated with company registration in the Philippines.
Depending on the type of legal entity you decide to register and your planned operations, you will need to factor in minimum capital requirements, costs associated with different licenses and permits, registrations, as well as human capital.
In this article, we will provide you with an overview of the primary costs involved to help you plan your entry into the Philippine market with confidence.
Types of Companies and Setup Costs in the Philippines
1. Cost of Setting Up a Corporation
Setting up a corporation in the Philippines is often a preferred route if you’re planning to build a long-term presence. It is the most popular business structure for foreigners as it allows 100% foreign ownership in most sectors unless restricted by the Foreign Investment Negative List (FINL).
The minimum capital requirement for a Domestic Corporation is USD 200,000, but this can be lowered if you meet certain criteria, such as hiring at least 50 Filipino employees or exporting most of your products and services.
Here’s a breakdown of setup costs to register and maintain a Corporation in the Philippines as a foreigner:
- Initial Registration Costs:Company Registration: USD 2,500Government Fees Deposit: USD 1,000 + 1% of your authorized capital
- Company Registration: USD 2,500
- Government Fees Deposit: USD 1,000 + 1% of your authorized capital
- Annual Service Cost (including deposits):Licensing Services (Annual Renewal of Business Permit): USD 800Visa Application Service: 9G Visa (1 year): USD 3,0009G Visa (2 years): USD 3,7509G Visa (3 years): USD 4,500Virtual Office: USD 650 per year, plus a USD 500 depositCorporate Secretary: USD 2,900 per year, with a USD 1,000 depositTreasurer in Trust: USD 650 per year, with a USD 500 deposit
- Licensing Services (Annual Renewal of Business Permit): USD 800
- Visa Application Service: 9G Visa (1 year): USD 3,0009G Visa (2 years): USD 3,7509G Visa (3 years): USD 4,500
- 9G Visa (1 year): USD 3,000
- 9G Visa (2 years): USD 3,750
- 9G Visa (3 years): USD 4,500
- Virtual Office: USD 650 per year, plus a USD 500 deposit
- Corporate Secretary: USD 2,900 per year, with a USD 1,000 deposit
- Treasurer in Trust: USD 650 per year, with a USD 500 deposit
For solo investors without any shareholders or partners , it is recommended to set up a One Person Corporation (OPC). While the costs and minimum capital requirements remain the same as a Corporation, an OPC has a simpler structure and lower compliance requirements compared to a corporation.
2. Cost of Setting up a Branch Office
For those who want to expand their business without creating a separate legal entity in the Philippines, establishing a branch office is the way to go. It operates as an extension of your parent company, allowing it to generate income locally. This setup is often used by companies that want tighter control over their operations and branding while still tapping into the Philippine market.
The minimum capital requirement is USD 200,000 for foreign companies. However, similar to corporations, this can be lowered if you are primarily exporting goods or services from the Philippines. In terms of cost, here’s what you’re looking at:
- Initial Registration Costs:Company Registration: USD 2,500Government Fees Deposit: Starts at USD 1,000 + 1% of your authorized capital
- Company Registration: USD 2,500
- Government Fees Deposit: Starts at USD 1,000 + 1% of your authorized capital
- Annual Service Costs:Resident Agent: USD 1,700 per yearTreasurer in Trust: USD 1,000 (one-time payment)Virtual Office: USD 650 per year, with a USD 500 deposit
- Resident Agent: USD 1,700 per year
- Treasurer in Trust: USD 1,000 (one-time payment)
- Virtual Office: USD 650 per year, with a USD 500 deposit
A branch office is a suitable option for foreign companies looking to keep everything under the name and control of the parent company.
3. Representative Office Setup Costs
If your goal is to establish a presence in the Philippines for non-commercial activities, a Representative Office is a recommended option. This setup is usually done for market research, building relationships, or supporting your head office with back-office functions. The minimum capital requirement for setting up a representative office in the Philippines is USD 30,000.
In addition to minimum capital, here are the additional costs you must keep in mind:
- Initial Setup Costs:Business Registration Fee: USD 2,500Government Fees Deposit: USD 1,000
- Business Registration Fee: USD 2,500
- Government Fees Deposit: USD 1,000
- Annual Service Costs:Resident Agent: USD 1,700 per yearTreasurer in Trust: USD 1,000 (one-time)Virtual Office: USD 650 per year, with a USD 500 deposit
- Resident Agent: USD 1,700 per year
- Treasurer in Trust: USD 1,000 (one-time)
- Virtual Office: USD 650 per year, with a USD 500 deposit
A Representative Office is a low-risk, low-commitment way to establish a footprint in the Philippines if you’re not ready to expand your business on a larger scale.
Common Ongoing Costs After Company Registration in the Philippines
Once your company is registered and ready to operate, there are a few ongoing costs to keep in mind. These will cover essential services that will provide operational support for your business to remain compliant and run smoothly:
*Note: The costs provided here are service fees only; government deposits are not included.
| Service | Cost | Details |
|---|---|---|
| Employee Payroll and HR Services | USD 300 (per month) for the first 10 employees, plus USD 20 for additional employees. | Payroll processing, mandatory contributions, employee records, and HR compliance, so you can manage your team without administrative stress. |
| Tax Filing and Accounting Services | USD 300 (per month). | Accurate bookkeeping, tax calculations, and timely filing in line with Philippine regulations. |
| Importer of Record (for businesses without import license) | Full Container Load (FCL) for USD 1,800.Less than Container Load (LCL) for USD 1,200. | A legal importer that manages customs clearance, documentation, and compliance requirements. |
| FDA Licensing Services (for businesses looking to operate in FDA regulated industries) | LTO (License to Operate): USD 1,200CPR (Certificate of Product Registration): USD 600CPN (Certificate of Product Notification): USD 600CMDR/CMDN (Certificate of Medical Device Registration/Notification): USD 1,000 – USD 1,200 | Securing the necessary permits from the Food and Drug Administration to legally import, distribute, or manufacture food, cosmetics, and pharmaceutical products. |
| Annual Audit | USD 1,000 - USD 1,500 | Preparing and filing audited financial statements with the Bureau of Internal Revenue (BIR) and Securities and Exchange Commission (SEC) to meet regulatory requirements. |
Set Up Your Company in the Philippines with Emerhub
Navigating business regulations in the Philippines can be challenging, but Emerhub’s local business experts can guide and assist you through every step of the process with ease. Our experienced team will help you with registering a company in the Philippines by:
- Assessing your business needs and aligning them with the government-established incorporation requirements to ensure compliance.
- Preparing, compiling, and submitting the necessary documentation and required permits.
- Liaising with governmental authorities and agencies for a smooth process.
- Assisting in obtaining the necessary permits, approvals, and licenses according to your industry’s needs.
- Providing support in opening a corporate bank account for your business transactions.
Ready to set up your business in the Philippines? Fill out the contact form below, and our experts will take it from there.
Frequently asked questions
How long does it take to register a company in the Philippines?
The typical timeline to fully register a company in the Philippines ranges from 4 to 5 months as it requires detailed planning, compliance and wait times for approval from various government institutions.
What are the SEC registration fees in the Philippines?
SEC registration fees for a corporation in the Philippines include several components:
Are there industries where foreigners are not allowed to register a company?
Yes, the Philippines maintains a Foreign Investment Negative List, which specifies sectors where foreign ownership is restricted or prohibited. Examples of industries closed to foreign ownership include:
What is a PEZA registration, and who needs it?
PEZA (Philippine Economic Zone Authority) registration allows businesses operating in designated economic zones to access tax incentives and other perks. It’s ideal for export-oriented companies, IT/BPO firms, manufacturers, and logistics providers. Benefits include income tax holidays, duty-free imports, simplified customs, and special visas for foreign staff.