Foreign-owned domestic corporation
The most common way for foreign owners to enter the Philippine market: your own Philippine company, up to 100% foreign-owned, with liability limited to the capital you put in.
What it is
A foreign-owned domestic corporation works like a private limited company or LLC. Foreigners own more than 40%, and up to 100%, of the shares. It can sell goods and services to Philippine customers in any industry not on the Foreign Investment Negative List.
You'll need to remit at least USD200,000 and appoint three corporate officers. Our all-inclusive fee is PHP150,000.
Key requirements
| Foreign ownership | More than 40%, up to 100%, subject to the Negative List |
|---|---|
| Minimum capital | USD200,000 remitted during incorporation; the SEC needs proof of remittance before approval |
| Incorporators | At least 1 |
| Corporate officers | At least 3: President (Filipino or foreigner), Treasurer (resident of the Philippines), Corporate Secretary (Filipino citizen) |
| Liability | Limited to paid-up capital; shareholders are liable only up to their shares |
| Revenue | Can sell to the Philippine market, except in Negative List industries |
| Corporate income tax | 25% on Philippine-source income (reduced from 30%) |
| Dividends to a foreign parent | Taxed at 15% or 25% |
| Visa & work permits | Eligible |
| Registration time | Within about 35 days |
Need a local Corporate Secretary or Treasurer? We can provide a nominee. Call +63 2 3224 2000 to discuss.
Common businesses set up this way
- IT-BPO, KPO & outsourcing
- Back office
- Offshoring
- Shared services
- Call centers
- IT, software & web development
- Animation & design
- Internet & e-commerce
- Medical transcription
- Legal transcription
- Import, export & trading
- Local manpower recruitment
- Mining
- Power & energy
- Shelf corporations
- Non-profit, non-stock
- Manufacturing
- Global in-house centers
Some industries are restricted for foreign ownership under the Foreign Investment Negative List. Ask us to check yours.
What our PHP150,000 fee covers
When we started our own business in the Philippines in 2012, the hidden fees surprised us. So our price is all-inclusive: government, legal, professional and notary fees, transport, Official Receipt printing and incidentals.
- Consultation with our legal team
- Company name reservation
- Articles of Incorporation, By-Laws and Affidavit of Undertaking
- Notarization
- Filing and registration with the SEC
- BIR registration in your city, including Official Receipt printing
- LGU registration: Barangay, Mayor's, Sanitary and Fire Safety permits
- Free 45-minute accounting consultation on compliance at hand-over
You'll need a business address
Your corporation must be registered to a business address that meets SEC and LGU requirements. If you don't have an office yet, a vOffice virtual office is the simplest option, and you can move to a physical office later.
Foreign-owned corporation questions
What is a foreign-owned domestic corporation?
A Philippine company, similar to a private limited company or LLC, where foreigners own more than 40% and up to 100% of the shares. Liability is limited to the paid-up capital.
How much capital do I need?
At least USD200,000, remitted during incorporation. The SEC asks for proof before approving.
Who can be the corporate officers?
At least three: a President (any nationality), a Treasurer resident in the Philippines and a Filipino Corporate Secretary. We can provide a nominee Secretary or Treasurer.
What tax will the company pay?
25% corporate income tax on Philippine-source income. Dividends sent to a foreign parent are taxed at 15% or 25%.
How is this different from a branch office?
A corporation is a separate company with limited liability. A branch office is an extension of your foreign company, which stays fully liable. Compare all structures.
Set up your Philippine company.
Talk to our incorporation team for free, in BGC, Makati, Rockwell or by phone.