The Philippines is one of the fastest-growing economies in South East Asia and is becoming a popular destination for western businesses to take their first steps into the Asia-Pacific market. Its steady economy, large consumer market and ease of doing business attract foreign investors around the world to establish themselves in the country. Significantly, in February 2019, President Duterte simplified the company incorporation process in the Philippines and revised the 38-year old Corporation Code to allow single individuals to register a business by themselves.
Overview of types of legal entities in the Philippines
|Minimum capital requirement||Liability||Number of Shareholders|
|Domestic corporation with over 40% foreign ownership||US$ 200,000||Limited||1-15|
|Domestic corporation with less than 40% foreign ownership||PHP 5,000 (USD 100)||Limited||1-15 (max. 40% ownership)|
Domestic Corporation with Foreign Ownership
The most common legal entity type in the Philippines among foreign nations is a Domestic Corporation. The new Corporation Code now allows company set up in the Philippines with just one shareholder. This shareholder can either be a:
Corporate Structure Requirements
Additionally, every corporation in the Philippines also requires at least three officers:
- Corporate Secretary
Out of these three corporate officers, only the Corporate Secretary must be a Philippine citizen. The treasurer must be a resident in the Philippines. The President does not have to be a resident, however, he/she must be a director as well as hold at least one shareholder.
Minimum Capital Requirements
The minimum capital requirements depend on the company’s scope of business and percentage of foreign ownership. Generally, the minimum capital requirement for domestic corporations with more than 40% for foreign ownership is USD 200,000. For domestic corporations with less than 40% of foreign ownership, capital starts at PHP 5,000 (around 100 USD).
How to register a domestic corporation in the Philippines
The process of incorporating a domestic corporation in the Philippines takes between 2-3 months. After an initial consultation, INS Global can handle the domestic corporation process from start to finish including submitting all the necessary documents to the relevant authorities to incorporate your company quickly and efficiently.
PEO: An Alternative to Company Incorporation in the Philippines
If you’re looking to enter the Philippine market but are unsure whether setting up a company is for you, our PEO solution may be what you’re looking for. By using our PEO solution, your talent is hired on our payroll in the Philippines while they work for you. It’s a simple and cost-effective solution to international expansion
How INS Global can help you
Setting up operations in a foreign country can be a challenge, especially when taking into account the many business entities available and the lengthy registration process. At INS Global, we understand the complexities involved in international expansion and can help you establish your entity in the Philippines quickly and compliantly. Contact us for a consultation to determine the best company incorporation option for your business in the Philippines. We take into account your short and long-term goals in the Philippines and advise you on the most appropriate avenues to pursue.