Registering a company in the Philippines is often associated with the desire to enter the promising and capacious Asian market. But the jurisdiction is not only suitable for cross-border commercial projects. It is also profitable to open IT companies, launch and develop fintech projects, and engage in e-commerce here.
Registering a holding company in the Philippines will allow you to build a reliable and secure asset ownership structure. After launching a project in the field of BPO Business Process Outsourcing, you will have access to expanded opportunities for outsourcing business processes. And registering an export-import company in the Philippines will allow you to utilise the jurisdiction’s significant production and resource potential.
Key advantages of doing business in the Philippines
Taxation in the Philippines is low, and the legislation provides for numerous benefits and deductions. The financial burden on the company and its founders can be reduced by launching a commercial project in a free economic zone (SEZ, Special Economic Zones). Additional legal instruments are provided by double taxation avoidance agreements; the Philippines has concluded DTTs – Double Taxation Treaties with 44 countries.
Another important advantage is loyal and transparent corporate regulation rules. Thanks to them, we can open a company for you online in the Philippines in 1-2 weeks from the date of successful completion of KYC/AML procedures. Non-residents are not restricted in their rights compared to citizens. In most cases, 100% foreign ownership of a company in the Philippines is permitted.
An interesting area for private capital is the housing market. Investments in real estate in the Philippines, given the growing economy, developed tourism sector and services for wealthy individuals, may well prove to be promising and profitable. The market is still far from saturation and is strictly controlled by the authorities, so the risks for investors are minimal.
| Type of commercial activity | Key advantages |
| Fintech, high tech, manufacturing, B2B/B2C |
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| International holding companies |
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| Online business, e-commerce, SaaS, IT startups |
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| Private investors, family offices, HNWIs |
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| Companies for which reputation and compliance with KYC/AML regulations are particularly important |
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Registering a company with foreign capital in the Philippines does not involve the potential disadvantages of tax-free territories. The jurisdiction can be considered without restriction as an alternative to Singapore or Malaysia. We will open a business for you in the Philippines and set up a commercial structure for effective operation.
Comprehensive support and legal assistance are available. At your request, we will open an account for the company. Our corporate services in the Philippines include comprehensive consultations, tax optimisation recommendations, and obtaining business visas. The incorporation procedure can be completed remotely, with an estimated timeframe of no more than two weeks. Experienced specialists at Imperial & Legal will tell you about other advantages of registering a company in the Philippines that are important for the implementation of a specific project.
Legal forms of business
A legal entity can be registered in the Philippines in several legal forms. Each of them is designed to solve specific tasks. The main differences between them are the tax burden, the degree of liability of the organisers, the possibility of foreign ownership, corporate regulations, and the cost of registering a company in the Philippines. The relevant legal actions are performed by several government agencies: DTI — Department of Trade and Industry, SEC — Securities and Exchange Commission, and CDA — Cooperative Development Authority.
| Type of structure | Who registers, description | Advantages | Disadvantages | Suitable for | Foreign ownership |
| Sole Proprietorship | DTI, business owned by one person |
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| No |
| Partnership | SEC, several partners — equal rights for General Partnership and division of responsibility for Limited Partnership |
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| No |
| Domestic Corporation | SEC, a legal entity with full rights and independent of its owners |
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| Yes, partially or 100% |
| Branch Office | SEC, a branch of a foreign company without legal entity registration |
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| Yes |
| Representative Office | SEC, promotion of goods and services |
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| Yes |
| Cooperative | CDA, joint economic activity |
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| No |
A classic corporation is best suited for setting up a company in the Philippines. This format is compatible with various business areas: IT, BPO, technology start-ups, and export-oriented manufacturing. A representative office or branch of a foreign company can be useful when launching specific projects, but they are not ideal for conducting traditional business. Sole proprietorships, partnerships, and cooperatives do not allow direct participation by foreigners, so the use of such structures is limited.
Personal taxation in the Philippines
The rules for determining the status of an individual in the jurisdiction are standard. There are two priority criteria for tax residency: the length of permanent residence in the Philippines during the reporting financial year (183+ days) or the main place of residence in the jurisdiction, even if the person is abroad. In both cases, the person will be granted tax resident status.
Fiscal legislation specifies special situations in which foreigners who formally meet the criteria for residency do not receive such status. The first is tourists and temporary employees, and the second is diplomatic representatives. Residents must include their worldwide income in the tax base, while non-residents must include only the portion of their income that was earned in the Philippines or transferred to the jurisdiction.
The calculation of personal income tax for non-residents differs only in the rules for forming the tax base. The exception is dividends, royalties, and interest, for which a fixed rate of 25% applies. Capital gains tax on the sale of real estate is 6% of the profit or the transaction amount, whichever is higher.
Non-residents often have obligations to pay local property taxes. The financial burden can be reduced by applying double taxation agreements. If a non-resident’s income is generated solely from local sources, there is no need to file a tax return in the Philippines.
Progressive tax scale:
| Income | Tax amount + interest for exceeding the threshold |
| ₱0 — ₱250,000 | ₱0 + 0% |
| ₱250,000 — ₱400,000 | ₱0 + 15% |
| ₱400,000 — ₱800,000 | ₱22,500 + 20% |
| ₱800,000 — ₱2 million | ₱102,500 + 25% |
| ₱2 million — ₱8 million | ₱402,500 + 30% |
| Over ₱8 million | ₱2.2 million + 35% |
Income from doing business in the Philippines is subject to taxation according to general rules, with rates not depending on the field of activity. For foreigners and non-residents, they may be reduced through the application of bilateral DTTs agreements.
Corporate taxes in the Philippines
The most significant changes in business taxation took place on 29 May 2025 and affected the 1997 basic code. The Capital Markets Efficiency Promotions Act – CMEPA is expected to simplify the calculation of tax liabilities on passive income and make the Philippines a more attractive destination for foreign investment. Other important innovations include an expanded list of financial incentives and a reduction in the administrative burden of filing returns.
Resident companies pay corporate tax on worldwide income, while foreign entities only need to take into account sources located in the Philippines when preparing their tax returns.
Specific rates depend on the status of the legal entity:
- domestic companies — 25%, source — net profit, special calculation rules take into account gross income at rates of 0%, 2%, 10% and 20%;
- resident foreign companies — rules are similar to those governing the tax obligations of domestic legal entities, with special cases and exceptions;
- non-resident foreign companies — 25%, reduced rates are provided for certain types of income.
Additional charges may include property tax — approximately 1% depending on the region, at source — 25% without deduction under the CIT, VAT — 12%. For small and medium-sized companies, if their annual revenue does not exceed ₱3 million, a reduced corporate tax rate of 20% applies.
Free economic zones in the Philippines PEZA, BOI, Clark Freeport, etc.
Legal entities that are SEZ residents receive significant tax preferences. Supervisory and regulatory functions in free economic zones are performed by the Philippine Economic Zone Authority (PEZA).
The main condition for establishing a company in the Philippines in an SEZ is official registration with PEZA. Once a company’s application is approved, it receives PEZ tax resident status and the right to claim tax benefits. Compliance with specific requirements for conducting business and export activities is mandatory.
What companies can open a business in the Philippines in an SEZ:
- those engaged in export activities, such as manufacturing goods or providing services for the foreign market;
- technology start-ups and hi-tech companies, if they meet the eligibility criteria;
- manufacturing structures, especially if their commercial interests are related to electronics, medicine, energy or biotechnology;
- service providers, including those operating on an outsourcing basis.
Taxes in the Philippines’ free economic zones
The main advantage of SEZs is a significantly reduced tax burden on businesses. The corporate tax rate is only 5% of gross profit, i.e. before expenses are deducted. Companies engaged in export business are exempt from VAT, but if their commercial operations affect the domestic market, value added tax will have to be paid in full — 12%.
Other advantages of SEZs:
- exemption from national property tax, but there may be separate payments at the regional level;
- the company may request a tax holiday for 5, 6 or 7 years, during which time it will not have to pay corporate tax in the Philippines or the rate will be significantly reduced;
- possible exemption from income tax on export activities;
- reduction of tax on dividends and interest through the application of bilateral DTA agreements.
Investment residence permit
Immigration and corporate law in the Philippines does not provide for the option of obtaining citizenship in exchange for investments in business, government funds or real estate. However, business people and investors who meet certain conditions can apply for a special long-term visa through investment (SIRV, Special Investor’s Resident Visa). An alternative is the Retirement Visa (SRRV, Special Resident Retiree’s Visa), which is aimed at investors over 35 years of age or retirees.
| Parameter | SIRV | SRRV |
| Visa type | Permanent, investment | Retirement, investment |
| Investment threshold | From $75,000 | $10,000–$50,000 |
| Right to work and conduct business | Yes | Limited |
| Possibility to include family members in the application | Yes | Yes |
| Possibility of obtaining citizenship | Yes, through naturalisation | Yes, through naturalisation |
| Special features |
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Stages of registering a corporation in the Philippines
The jurisdiction’s legislation is adapted to the requirements of the times and fully complies with global transparency trends. Business people and investors have access to various business tools, and to reduce the tax burden, you can open a company in the Philippines in a free economic zone.
However, it is not easy to understand all these options, especially if you have no experience. Failure to comply with corporate requirements is a serious violation that leads to refusal to register a company in the Philippines or problems in business. Therefore, at the planning stage, be sure to ask the experienced specialists at Imperial & Legal to calculate all the consequences of launching the project and ensure compliance with corporate law.
Minimum requirements depending on the type of company:
| Legal form of business | Owners | Directors | Authorised capital | Foreign ownership |
| Domestic Corporation | 1-15 | 1-15 | No | Up to 40% or 100% |
| One Person Corporation | 1 | 1 | No | Yes |
| Foreign Corporation (Branch Office) | 1 | — | $200,000 | 100 |
| Representative Office | 1 | — | Budget of at least $30,000 per year | 100 |
| Regional Operating Headquarters (ROHQ) | 1 | — | $200,000 | 100 |
| PEZA / SEZ Company | 1-15 | 1-15 | Depends on the project | 100 |
For Domestic Corporations, the permissible share of foreign ownership depends on the type of activity of the company. If the business belongs to sectors included in the Foreign Investment Negative List, foreign participation is limited to 40%. If the activity is not subject to restrictions, 100% foreign ownership is permitted.
Choosing the right legal form for your business is not the only important issue that requires attention. Before corporate registration in the Philippines is launched, we will help you calculate changes in tax obligations, tell you about useful services, and select a bank for opening a personal or corporate account upon request.
How Imperial & Legal helps clients
Our company registration services in the Philippines are all-inclusive. We offer corporate solutions tailored to the specific situation and requirements of each client. At your request, Imperial & Legal specialists are ready to take on the support of foreign businesses in the Philippines.
What we offer our clients:
- extensive advice on choosing the jurisdiction for company registration and the legal form of business;
- accounting support in the Philippines;
- work with corporate documentation: preparation, amendments, adaptation to new legal requirements;
- tax consulting in the Philippines, development of effective optimisation techniques;
- preparation for successful KYC and AML audits;
- remote turnkey company formation in the Philippines;
- Comprehensive tax and legal support;
- assistance in obtaining business visas for the Philippines.
Legal protection of investments, a favourable tax climate, good conditions for launching start-ups, free economic zones, the possibility of 100% foreign ownership and a good reputation are the reasons for the jurisdiction’s popularity among business people and investors. The main advantage of doing business in the Philippines is its favourable combination of characteristics. You can always obtain additional information on this topic from the experienced specialists at Imperial & Legal.
