Facts in this handbook are compiled from official sources such as local authorities. Rules change — confirm the current position through the source links or with the authority before making major decisions.
01Overview
- Region
- Southeast Asia
- Capital
- Manila
- Currency
- PHP
- Languages
- Filipino, English
- ISO code
- PH / PHL
Jurisdictions
- Philippines — National level; special zones and regulated sectors have separate rules
Macro indicators such as GDP and population are not included yet; see official statistics such as the World Bank.
02Market Entry
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Sectors on the Foreign Investment Negative List (FINL) are restricted
- Applies to
- Land ownership, public utilities, media and others are constitutionally or legally restricted; unlisted sectors generally allow 100%
- Jurisdiction
- Philippines
- Source
- MOFCOM
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Stock corporation (including one-person corporation)
- Applies to
- Branches, representative offices and regional headquarters are also possible
- Jurisdiction
- Philippines
- Source
- MOFCOM
Registration authority
Primary authority for company or commercial registration.
Securities and Exchange Commission (SEC)
- Applies to
- Business names are registered with the DTI
- Jurisdiction
- Philippines
- Source
- MOFCOM
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Sectors on the Foreign Investment Negative List (FINL) are restricted
- Applies to
- Land ownership, public utilities, media and others are constitutionally or legally restricted; unlisted sectors generally allow 100%
- Jurisdiction
- Philippines
- Source
- MOFCOM
Local director / representative
Whether a locally resident director, manager or representative is required.
No residence requirement for directors; the corporate secretary must be a resident Filipino citizen and the treasurer a resident
- Applies to
- Applies to stock corporations
- Jurisdiction
- Philippines
- Source
- Securities and Exchange Commission
Local registered address
Whether a local registered address or premises is required at incorporation.
A registered address in the Philippines is required
- Applies to
- A corporate service address may be used if it can receive statutory documents
- Jurisdiction
- Philippines
- Source
- Securities and Exchange Commission
Beneficial ownership register
Whether companies must keep or file ultimate beneficial owner information.
Beneficial owners must be disclosed to the SEC in the General Information Sheet
- Applies to
- Ordinary companies
- Jurisdiction
- Philippines
- Source
- Securities and Exchange Commission
Foreign-entity setup flow
Main approval stages for a foreign investor setting up an entity (no time estimates).
File incorporation documents via SEC eSPARC → BIR registration → local business permits (barangay clearance, mayor's permit) → SSS, PhilHealth and Pag-IBIG registration
- Applies to
- Foreign equity is subject to the Foreign Investment Negative List
- Jurisdiction
- Philippines
- Source
- Securities and Exchange Commission
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
25%
- Applies to
- Domestic companies with taxable income up to PHP 5m and assets up to PHP 100m pay 20%; registered incentivised enterprises may get 20% or a 5% special rate
- Jurisdiction
- Philippines
- Source
- State Taxation AdministrationMOFCOM
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
VAT 12%
- Applies to
- Ordinary companies
- Jurisdiction
- Philippines
- Source
- State Taxation Administration
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
Generally 25%; 15% where the tax-sparing condition is met
- Applies to
- May be reduced under the China–Philippines treaty
- Jurisdiction
- Philippines
- Source
- State Taxation Administration
Tax authority
Authority responsible for corporate tax registration and filing.
Bureau of Internal Revenue (BIR)
- Applies to
- Ordinary companies
- Jurisdiction
- Philippines
- Source
- State Taxation Administration
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- Philippines
- Source
- State Taxation Administration (China)State Taxation Administration
05Banking & Payments
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
Liberal FX regime; foreign currency can be bought and held freely
- Applies to
- Foreign companies may open FX accounts locally
- Jurisdiction
- Philippines
- Source
- MOFCOM
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Bangko Sentral ng Pilipinas (BSP)
- Applies to
- Ordinary companies
- Jurisdiction
- Philippines
- Source
- MOFCOM
06Employment
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Alien Employment Permit (AEP) plus 9(g) work visa
- Applies to
- Investors may also apply for treaty trader/investor visas
- Jurisdiction
- Philippines
- Source
- MOFCOM
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
Department of Labor and Employment; Bureau of Immigration
- Applies to
- Ordinary companies
- Jurisdiction
- Philippines
- Source
- MOFCOM
Social security contributions
Main employer social security schemes for local and foreign employees.
SSS, PhilHealth and Pag-IBIG
- Applies to
- Employers must register employees and contribute
- Jurisdiction
- Philippines
- Source
- Social Security System
07Trade & Customs
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
ASEAN, RCEP (in force for the Philippines from 2023), ASEAN–China FTA and others
- Applies to
- Ordinary companies
- Jurisdiction
- Philippines
- Source
- MOFCOM
Customs authority
Authority for import/export clearance and tariffs.
Bureau of Customs (BOC)
- Applies to
- Ordinary companies
- Jurisdiction
- Philippines
- Source
- Bureau of Customs
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Board of Investments (BOI) and PEZA under the DTI
- Applies to
- Subic, Clark and other freeports have their own authorities
- Jurisdiction
- Philippines
- Source
- MOFCOM
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
Special economic zones (PEZA)
- Applies to
- Ordinary companies
- Jurisdiction
- Philippines
- Source
- MOFCOM
09Digital & IP
IP office
Authority for trademark and patent filing and registration.
Intellectual Property Office of the Philippines (IPOPHL)
- Applies to
- Ordinary companies
- Jurisdiction
- Philippines
- Source
- MOFCOM
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
Data Privacy Act of 2012 (RA 10173)
- Applies to
- Supervised by the National Privacy Commission (NPC)
- Jurisdiction
- Philippines
- Source
- National Privacy Commission
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- Philippines
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Asia-Pacific, monitored by our sister site Global Risk Monitor.
View Asia-Pacific risk monitor
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
Main setup steps in Philippines
- 1File incorporation documents via SEC eSPARC
- 2BIR registration
- 3local business permits (barangay clearance, mayor's permit)
- 4SSS, PhilHealth and Pag-IBIG registration
Foreign equity is subject to the Foreign Investment Negative List
General checklist (setting up a subsidiary)
- Decide model and jurisdiction
- Confirm licences
- Prepare documents
- Incorporate
- Register for tax
- Open bank account
- Obtain operating licences
- Start operations
Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻菲律宾共和国大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.
Local authorities
- TaxBureau of Internal Revenue (BIR)Tax authority website · Accessed 2026-11-13
- LegislationNational Privacy CommissionData Privacy Act of 2012 · Accessed 2026-11-13
- CustomsBureau of CustomsCustoms · Accessed 2026-11-13
- LabourSocial Security SystemSocial security · Accessed 2026-11-13
- Company registrationSecurities and Exchange CommissionCompany registration · Accessed 2026-11-13