Talk to Our Experts for Your Business Formation
- End to end support for Corporation setup
- Issue work permits and hire employees as needed
- Schedule an initial consultation to discuss the most suitable options for your planned operations
Most Popular Legal Entities for Business Formation in the Philippines
Corporation
A corporation in the Philippines is a limited liability company that can be 100% foreign-owned (foreign-owned domestic corporation) or a domestic corporation where Filipino ownership is 60% or more.
Key requirements include:
- At least two shareholders
- A minimum capital amount of USD 200,000 if it’s a foreign-owned domestic corporation or USD 100 if it’s a domestic corporation
- Business address
- Corporate officers, including a resident corporate secretary, president, treasurer, and compliance officer
One Person Corporation (OPC)
One Person Corporation (OPC) in the Philippines is similar to a corporation except that it only requires one shareholder. The OPC shareholder can be a natural person, a trust, or an estate.
Key requirements include:
- No specified minimum capital requirement for locally-owned OPC. However, an OPC with 40% or more foreign ownership requires a minimum capital of USD 200,000
- Must appoint a nominee and alternate nominee to take over in case of death or incapacity of the single shareholder
- Must have a resident corporate secretary and a treasure
Not sure which business entity is suitable for you?
Full Range of Corporate Services to Register and Operate Your Business in the Philippines
Incorporation Assistance
Our business advisors handle all aspects from business name reservation to securing the final SEC business registration certificate
Tax & Accounting
Ensure that your taxes and employee payroll are processed accurately and in compliance with the law in the Philippines
FDA Registration
Obtain the License to Operate and Certificate of Product Registration from the FDA in the Philippines and operate your business in regulated industries
Trademark Protection
Register your trademarks such as logos, words, etc, with the help of our experts and protect your brand identity in the Philippines
Importer of Record
Start importing goods into the Philippines with Emerhub without having to set up a local entity and securing an import license
Business License and Permits
Secure the business license and necessary permits to operate your business successfully
Virtual Office
Don’t need a physical office? Get a virtual office address for business registration and legal compliance through Emerhub
Relocation Assistance
Guidance on long-term or short-term business visas and work permits for yourself and your team and relocate to Philippines
Key Requirements for Business Setup
General overview of the requirements for setting up a domestic or foreign-owned corporation
At least two shareholders
- Shareholders can be both individual or corporate
- 100% foreign ownership allowed subject to Foreign Investment Negative List
Designating corporate officers
- President: Acts as the signatory.
- Corporate Secretary: Oversees company administration. Must be a resident of the Philippines.
- Treasurer: Oversees corporate finances
- Compliance Officer: Ensures that the company complies with legal and tax regulations.
Commercial address
- A company must have a registered address in the Philippines.
- Emerhub provides virtual addresses for companies that don’t need office space.
Minimum capital requirements
- USD 100.00 for Domestic Corporations
- USD 200,000 for foreign-owned corporations (foreign shareholder own >40% shares)
- USD 100,000 for foreign-owned corporations that employ advanced technology or more than 50 Filipino employees
Additional requirements for some industries
- Most industries are 100% open to foreign investments
- Some industries require additional commercial licenses and product registrations such as FDA registrations which will be obtained after the incorporation.
Understanding ordinary and preferential shares for Domestic Corporations
When investing in sectors requiring majority local ownership, a common practice is to grant ordinary shares held by foreign investors 10x the voting rights of shares held by local shareholders.
This means that the minority foreign shareholders retain control of the company while complying with local ownership laws.
To implement this legally and effectively, it’s essential to have professionally drafted Articles of Association.
Don’t Take Our Word For It. See What Our Clients Are Saying.
How Does it Work with Emerhub
Complete business formation support from initial setup to licensing
01
Initial consultation
Tell us about your planned activities in the Philippines and we will advise you on the best way to register your business based on the Philippines Standard Industrial Classification (PCIS).
02
Provide required documents
Based on the information you have provided, Emerhub will advise you on all the required proprietor documents you need to submit. Once provided, we will start the registration process.
03
Ratification of Articles of Incorporation
Once registration is complete with the Securities and Exchange Commission (SEC), we will ratify the AOI of the company to legitimize its existence under Philippine law.
04
Securing of Licenses
Once the corporation is registered with the SEC, we will acquire the Tax Identification Number (TIN) and secure the Business Permit from the Local Government Unit (LGU).
Ready to start your business in the Philippines?
Schedule a free, no-obligation consultation with our team of experts. We’ll discuss your needs and how we can help you setup and manage your business in the Philippines.
Email Us
philippines@emerhub.com
Call Us
+63 928 516 2791
Visit Us
Unit 710, High Street South Corporate Plaza Tower 2, 26th Street corner 11th Avenue, 1634 Taguig City, Metro Manila, Philippines
Disclaimer
Emerhub limited is a consultancy service specializing in assisting clients with company registration and corporate secretarial processes in emerging markets. We are an independent entity and are not affiliated with, endorsed by, or representative of any government. By using our services, you agree to our Terms & Conditions and Privacy Policy.