Set up a company in the Philippines as a foreign founder: cost, time and ownership
The usual company type for a foreign founder in the Philippines is the domestic corporation with foreign equity. Foreign ownership: SEC's OneSEC covers domestic stock corporations with more than 40% up to 100% foreign equity; sector limits (Foreign Investment Negative List) not confirmed. Minimum capital: None stated.
The domestic corporation with foreign equity in the Philippines, from the official pages
| What | Detail | Source |
|---|---|---|
| Vehicle and foreign ownership | OneSEC covers domestic stock corporations from all-Filipino to more than 40% up to 100% foreign equity. | esparc.sec.gov.ph |
| Time (OneSEC) | OneSEC aims for one-day approval of the registration application. | esparc.sec.gov.ph |
| Time (regular) | Under the regular process, the SEC advises review status by email within 7 working days. | esparc.sec.gov.ph |
| Online registration | Incorporators, partners and resident agents may sign remotely from any device. | esparc.sec.gov.ph |
| Corporate income tax | Domestic corporations other than small ones, and resident foreign corporations, pay 25% (CREATE Act). | bir-cdn.bir.gov.ph |
| Small company rate | 20% for domestic corporations with net taxable income up to PHP 5 million and total assets up to PHP 100 million (excluding land). | bir-cdn.bir.gov.ph |
| Annual compliance | Corporations file BIR Form 1702, the annual income tax return, with audited financial statements if gross receipts exceed PHP 3,000,000. | bir-cms-ws.bir.gov.ph |
| Audited accounts threshold | Audited financial statements are required with the return when gross annual sales exceed PHP 3,000,000. | bir-cms-ws.bir.gov.ph |
Questions founders ask about the Philippines
- Can a foreigner own 100% of a company in the Philippines?
- SEC's OneSEC covers domestic stock corporations with more than 40% up to 100% foreign equity; sector limits (Foreign Investment Negative List) not confirmed.
- What is the minimum capital for a company in the Philippines?
- None stated.
- How long does it take to register a company in the Philippines?
- OneSEC: one-day approval; regular process: review status within 7 working days.
- Can I register a company in the Philippines from abroad?
- Online via eSPARC; incorporators, partners and resident agents may sign remotely.
- What is the corporate tax rate in the Philippines?
- 25%; 20% for domestic corporations with net taxable income up to PHP 5 million and total assets up to PHP 100 million.
Other countries
Australia · Colombia · Cyprus · Estonia · Georgia · Hong Kong · Indonesia · Ireland · Malaysia · Malta · Mexico · Netherlands · Portugal · Singapore · Spain · Thailand · United Arab Emirates · United Kingdom · Vietnam
To weigh the choice, read where to incorporate as a remote founder.
- Company type
- Domestic stock corporation with foreign equity, registered with the SEC through eSPARC (OneSEC or regular process)
- Foreign ownership
- SEC's OneSEC covers domestic stock corporations with more than 40% up to 100% foreign equity; sector limits (Foreign Investment Negative List) not confirmed
- Minimum capital
- None stated
- Time to register
- OneSEC: one-day approval; regular process: review status within 7 working days
- Local director
- Not confirmed: resident agent signing is mentioned by SEC; director and treasurer residency rules not confirmed
- Register from abroad
- Online via eSPARC; incorporators, partners and resident agents may sign remotely
- Corporate tax
- 25%; 20% for domestic corporations with net taxable income up to PHP 5 million and total assets up to PHP 100 million
- Official page
- esparc.sec.gov.ph
- Checked
Fees, capital rules and timings change. Check esparc.sec.gov.ph before you register, and get a written quote from any agent you use. Spotted something out of date? Tell us in the members' chat.