How to Register a FinTech Company in the Philippines

The Philippines currently boasts one of Southeast Asia’s fastest-growing Financial technology (FinTech) sectors. The industry saw a growth rate of 38% between 2021 and 2023 and is projected to grow by an additional 18.01% by the end of 2025. The Philippine government has also invested USD 337.4 Million into the industry in 2023 to ensure its expansion.

The digital assets market in the Philippines is expected to continue its steady growth over the next five years, making it a unique opportunity for foreign investors seeking to expand their activities into this digital market. If you are considering moving your digital operations, this article will guide you through how to register a Fintech company in the Philippines.

Why start a FinTech company in the Philippines?

Overview of the FinTech industry in the Philippines

FinTech companies offer a diverse range of services that combine new technology with financial services to increase the overall experience and service to the customer. In 2023, the Philippines counted 285 FinTechs, ranging from startups to more thoroughly established companies. These companies generally focus on offering specific ranges of services:

• E-commerce solutions
• Digital Payment and Mobile Wallets
• Cryptocurrency and blockchain
• Digital Remittance
• Collection services
• Alternative payment solution

The Philippines government has also put in place special grants to encourage the shift towards digital banking. These grants include the Asian Development Bank’s (ABD) Fintech for Inclusion Transformation (FIT) program, which provided USD 655,000 to rural banks to accelerate financial inclusion through the digitalization of services.

Hiring IT and E-commerce professionals in the Philippines

On top of its thriving FinTech industry, the Philippines is also a popular location for expanding digital operations, due to its wide availability of young professionals in the IT and E-commerce fields. The average age of workers currently stands at 23 years old and the country boasts a high level of English language proficiency.

The Philippine government has also implemented several policies and incentives to further increase the amount of students that specialize in digital asset-related fields, and to encourage local companies to specialize and hire in these industries. 

A notable example of government efforts in the Philippines is the Fintech and Regulatory Innovation (FTRI) program offered by Mapua University. This program was specifically designed to have senior policymakers, central bank regulators, and security agencies tutor students and increase the Philippines’ reputation as a leader in the field of financial technology.

Growing demand for Fintech services

The Philippines is a popular destination for registering a FinTech due to the Filipino population’s significant demand for digital asset management and alternative payment technologies. This is largely due to the growing adoption of e-money accounts as an alternative to traditional banking, with 40% of the population having an e-wallet in 2023.

The Philippines also has a unique market opportunity for digital insurance offered via e-commerce platforms. In 2022, it was estimated that only 3% of the Philippines population had an insurance policy, but that the number has been steadily rising since the pandemic. Currently, it is estimated that half of the insurance policies being purchased in the Philippines are digital.

Blockchain and cryptocurrency companies are also uniquely positioned to enter the market in the Philippines, as cryptocurrencies have seen a surge in adoption by Filipino citizens, especially younger generations, as a more popular payment method for digital transactions. Currently, the Philippines ranks 10th worldwide in terms of cryptocurrency adoption.

Registration process for foreign-owned FinTech companies in the Philippines

What are the legal requirements to register a FinTech company in the Philippines?

To ensure that your FinTech company in the Philippines remains compliant with local regulations, you must register your planned activities with the authorized regulatory authorities before company registration. Remember that different authorities manage certain digital transaction operations:

1. Registration with the Securities and Exchange Commission (SEC), which oversees corporations and investments, is mandatory for all FinTech companies in the Philippines.
2. Registration with the Bangko Sentral ng Pilipinas (BSP) is mandatory for FinTechs that plan to engage in:
   1. Remittance
   2. Money Changing
   3. Foreign exchange
   4. Virtual currency exchanges
3. Registration with government agencies such as the Social Security System (SSS), Philippine Health Insurance Corporation Philhealth), and Home Development Mutual Fund is mandatory for hiring employees in the Philippines.
4. Registration with the Local Government Unit (LGU) and the Bureau of Internal Revenue (BIR) is necessary for registering a company in the Philippines and earning revenue.

Emerhub is experienced with the registration process for each of the necessary regulatory bodies for FinTechs. Our experts will spare you the complexities of registering digital asset operations and will help you obtain the necessary permits simultaneously to avoid long waiting periods.

Company registration process in the Philippines

Company registration can be a complex process, as you will need to determine which structure you want to adopt for your operations, and how much foreign ownership you wish to maintain. Keep in mind that for higher foreign shares, there will be more requirements in terms of invested capital. For example, for foreign ownership over 40%, the capital requirement is USD 200,000.

Emerhub’s team of advisors has a deep understanding of the regulations and registration requirements for companies in the Philippines. Through our company registration service, we can ensure that you incorporate your Fintech company in the Philippines in an efficient and legally compliant manner. 

Contact us via the form below with an overview of your planned operations, and one of our advisors will be in touch with you to get the process started!