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 will be added from the World Bank in the data release (P1).
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 Administration MOFCOM
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
- Tax Bureau of Internal Revenue (BIR) Tax authority website · Accessed 2026-11-13
- Legislation National Privacy Commission Data Privacy Act of 2012 · Accessed 2026-11-13
- Customs Bureau of Customs Customs · Accessed 2026-11-13
- Labour Social Security System Social security · Accessed 2026-11-13
- Company registration Securities and Exchange Commission Company registration · Accessed 2026-11-13