Register a Business in the Philippines: Everything You Need to Know

The Philippines in 2025 has become an attractive destination for global companies due to its robust economic growth, English-speaking workforce, and strategic location in Southeast Asia. With a young and skilled population, the country has positioned itself as a leading hub for BPO, technology services, manufacturing, and e-commerce.

Cities like Manila, Cebu, and Davao serve as key commercial centers, offering diverse opportunities for foreign investors. Companies planning to register a business in the Philippines can leverage the country’s strong outsourcing ecosystem, expanding domestic market, and favorable investment incentives, while navigating a structured but sometimes complex regulatory environment.

This guide covers market entry options, business structures, registration steps, documentation, costs, compliance, and Employer of Record (EOR) alternatives to help foreign businesses expand into the Philippines efficiently.

Table of Contents

• Exploring Your Market Entry Options in the Philippines
• Business Structures You Can Choose From
• Comparing Business Structure Options
• How to Choose the Right Business Model for Your Operations
• Step-by-Step Guide to Company Registration in the Philippines
• Key Documents Required to Register Your Philippine Company
• Post-Incorporation Essentials You Shouldn’t Ignore in the Philippines
• Additional Business Licenses and Registrations You Might Need in the Philippines
• Timeframe to Set Up a Business in the Philippines
• What Does It Cost to Incorporate a Company in the Philippines?
• Obstacles Global Founders May Face While Setting Up in the Philippines
• Incorporating as a Foreign-Owned Company: A Special Path
• Employer of Record: A Simpler Way to Hire in the Philippines Without Incorporation
• Why Asanify is the Ideal Partner for Global Companies Entering the Philippines
• Summary & Final Takeaways
• FAQs

Exploring Your Market Entry Options in the Philippines

Foreign businesses can enter the Philippine market using two primary methods:

Incorporating a Local Business Entity

Forming a company in the Philippines involves registering with the Securities and Exchange Commission (SEC) or the Department of Trade and Industry (DTI), obtaining local permits, and complying with labor regulations. This approach is ideal for companies seeking to build a long-term presence, hire a local team, or operate with full control.

Hiring Through an Employer of Record (EOR)

For companies seeking quick and low-risk market entry, an Employer of Record allows you to employ Filipino workers without forming a local entity. The EOR manages contracts, payroll, tax withholdings, and government contributions, while you retain day-to-day management. This approach is perfect for market testing, pilot projects, or building small teams.

Business Structures You Can Choose From

The Philippines offers several business entity types suitable for foreign investors:

• Sole Proprietorship – Simple to establish but offers no liability protection; requires DTI registration.
  
• Partnership – Two or more owners sharing profits and liabilities; registered with SEC.
  
• Corporation – Separate legal entity offering limited liability; can be domestic or foreign-owned.
  
• Branch Office – An extension of a foreign company with revenue-generating operations.
  
• Representative Office – Non-revenue-generating; used for liaison, marketing, or support activities.
  
• Regional Operating Headquarters (ROHQ) – For foreign companies managing regional operations in Asia.
  

Comparing Business Structure Options

Structure	Ownership	Liability	Taxation	Best For
Sole Proprietorship	1 owner	Unlimited	Personal income tax	Freelancers or micro-businesses
Partnership	2+ partners	Shared	Personal income tax	Small ventures with joint owners
Corporation	1–15 shareholders	Limited	Corporate tax	SMEs and foreign subsidiaries
Branch Office	Parent company	Parent liable	Corporate tax	Revenue operations for foreign firms
Representative Office	Parent company	Parent liable	None	Market research or liaison activities
ROHQ	Parent company	Limited	Preferential tax rate	Regional management operations

How to Choose the Right Business Model for Your Operations

Selecting the right business structure depends on your goals, liability preferences, and industry:

• Sole proprietorships and partnerships are best for small local operations with minimal risk.
  
• Corporations are ideal for SMEs and foreign investors seeking limited liability and growth potential.
  
• Branch and representative offices work well for foreign companies expanding gradually or focusing on market testing.
  
• EOR is the most efficient choice for businesses wanting quick hiring and compliance without full incorporation.
  

Step-by-Step Guide to Company Registration in the Philippines

1. Determine your business structure and ownership type.
   
2. Reserve your business name with SEC or DTI.
   
3. Draft Articles of Incorporation or Partnership, and have them notarized.
   
4. Obtain approval from SEC (corporations and partnerships) or DTI (sole proprietorships).
   
5. Acquire a local business permit from the city or municipality where your office will operate.
   
6. Register with the Bureau of Internal Revenue (BIR) for tax identification and VAT if applicable.
   
7. Register employees with social agencies like SSS, PhilHealth, and Pag-IBIG.
   
8. Secure any industry-specific licenses or permits before operations.
   

Suggested Read: Understanding Labour Laws in the Philippines: Contracts, Wages, and Termination Rules

Key Documents Required to Register Your Philippine Company

• Passports or government IDs of all shareholders and directors
  
• Proof of address for directors and shareholders
  
• Articles of Incorporation or Partnership (notarized)
  
• Name reservation certificate from SEC or DTI
  
• Lease agreement or proof of registered office address
  
• Bank certificate for capital deposit (for corporations and branches)
  
• Board resolution for foreign companies establishing branch or representative offices
  

Post-Incorporation Essentials You Shouldn’t Ignore in the Philippines

Once your company is registered, maintaining compliance is critical:

• Register for tax and issue official receipts via BIR accreditation
  
• File monthly, quarterly, and annual tax returns
  
• Enroll employees in SSS, PhilHealth, and Pag-IBIG for social benefits
  
• Maintain corporate books and hold annual stockholder meetings
  
• Renew business permits annually with local government offices
  

Additional Business Licenses and Registrations You Might Need in the Philippines

Depending on your business activities, additional registrations may be required:

• Import and export permits for trading companies
  
• PEZA or BOI registration for tax-incentivized businesses
  
• FDA permits for food, health, or pharmaceutical products
  
• Environmental permits for manufacturing or industrial operations
  

Timeframe to Set Up a Business in the Philippines

Step	Estimated Duration
Reserve business name	1–3 business days
SEC/DTI registration	5–10 business days
Obtain local business permits	5–10 business days
BIR and tax registration	5–7 business days
Social agency registrations	3–5 business days
Total Time to Register	20–35 business days

Timeframes may vary depending on document preparation, foreign ownership approvals, and sector-specific licensing.

What Does It Cost to Incorporate a Company in the Philippines?

• SEC/DTI registration fees: $100–$500
  
• Notary and legal services: $300–$1,000
  
• Local government permits and licenses: $100–$300
  
• Accounting and compliance setup: $500–$2,000 annually
  
• Office lease and utilities costs vary by location
  

Total incorporation costs generally range from $1,000 to $3,000, excluding capital investment.

Obstacles Global Founders May Face While Setting Up in the Philippines

• Navigating multiple government agencies and procedural requirements
  
• Foreign ownership restrictions in sectors like retail trade or media
  
• Complex tax filing obligations and local permit renewals
  
• Dependence on physical presence for some notarization and verification steps
  
• Delays due to sector-specific approvals or incomplete documentation
  

Incorporating as a Foreign-Owned Company: A Special Path

Foreign investors can set up in the Philippines using:

• Domestic Corporation – Allows up to 100% foreign ownership in many industries
  
• Branch Office – Operates as an extension of the parent company
  
• Representative Office – For liaison and non-commercial activities
  

However, foreign ownership in restricted sectors may require a Joint Venture or compliance with the Foreign Investment Negative List (FINL).

Employer of Record: A Simpler Way to Hire in the Philippines Without Incorporation

Entering the Philippine market does not always require establishing a local legal entity. For many global companies, particularly those exploring market potential or running pilot projects, an Employer of Record (EOR) offers a fast and fully compliant way to hire employees in the Philippines without the cost and complexity of incorporation.

From a legal perspective, the EOR is the official employer for your Philippine-based workforce. It manages employment contracts, payroll processing, tax withholdings, and government contributions to SSS (Social Security System), PhilHealth, and Pag-IBIG Fund. Meanwhile, your company retains full control over your employees’ daily work, roles, and performance management.

This model is ideal for:

• Testing the Philippine market before committing to a permanent entity
• Running short-term or project-based teams in customer support, sales, or operations
• Hiring remote Filipino employees for global roles such as development or BPO functions
• Rapidly expanding into Southeast Asia without navigating multi-agency registration processes

Using an EOR also shields foreign companies from the administrative and compliance challenges of:

• Drafting labor contracts that comply with the Philippine Labor Code
• Handling payroll, tax filings, and government-mandated benefits
• Registering with SSS, PhilHealth, and Pag-IBIG for employee social benefits
• Managing statutory leave entitlements and 13th-month pay requirements

By leveraging an EOR, businesses minimize the risk of non-compliance, worker misclassification, and labor disputes while achieving quick, cost-efficient market entry into the Philippines.

Suggested Read: Employer of Record Philippines: A Comprehensive Guide

Why Asanify is the Ideal Partner for Global Companies Entering the Philippines

Asanify provides complete support for international companies entering the Philippines, offering both full company incorporation and Employer of Record (EOR) services. For companies planning long-term operations, we guide you through the full registration and compliance process:

• Choosing the right entity type (Domestic Corporation, Branch Office, or Representative Office)
• Registering with the Securities and Exchange Commission (SEC) or Department of Trade and Industry (DTI)
• Securing business permits from local government units (LGUs)
• Registering with the Bureau of Internal Revenue (BIR) for tax and VAT compliance
• Handling post-incorporation requirements like payroll setup and social benefit registrations

If you are not yet ready to incorporate, our Employer of Record solution allows you to hire Filipino employees within days. Asanify manages employment contracts, processing payroll, social security, and statutory compliance, ensuring your team operates legally and efficiently without administrative overhead.

Asanify has successfully assisted clients across Asia, Europe, the US, and the Middle East in building Philippine teams quickly and risk-free. Whether you are a startup testing demand or a multinational deploying a support hub, we make your Philippines expansion seamless and compliant.

Summary & Final Takeaways

The Philippines in 2025 offers a strong talent pool and strategic advantages for global businesses. Companies typically have two main options for market entry: incorporating a local entity or hiring through an Employer of Record (EOR).

If your goal is to establish a long-term presence, raise capital, or maintain full operational control, forming a registered Philippine company is the best option. However, if you need rapid market entry, pilot operations, or a small local team without complex legal setup, an EOR allows you to start quickly and remain fully compliant with Philippine labor laws.

FAQs

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.