How to start a corporation in the Philippines: Your guide in 2026

How do you start a corporation in the Philippines?

To start a corporation in the Philippines, you reserve a company name with the SEC, register your incorporation papers, then sign up with your local government, the BIR, and the main employee benefit agencies.

• First, learn the ownership rules and pick the right corporate type.
• Next, file your papers with the SEC and pay the set fees.
• Finally, register with the LGU, the BIR, and benefit agencies before you hire.

Learning how to start a corporation in the Philippines can open a rewarding venture. The country has a strategic location and a skilled workforce. As a result, it offers strong opportunities for founders and investors.

The economy also keeps growing. In 2025, it expanded 4.4% for the full year. It posted GDP growth of 5.9% in 2023 as well. In addition, government systems keep improving, with more automated and online steps.

So now is a good time to begin. This guide walks you through each step in plain terms.

Starting a corporation in the Philippines

The country keeps improving its investment climate and its processes. So setting up shop is easier than before.

The economy also keeps drawing foreign investments. Much of this money goes to manufacturing, energy, finance, and real estate.

Starting a corporation in the Philippines has also become easier thanks to a few laws:

• Amendments to the Public Services Act, which opened foreign ownership to services like railways and airports.
• Amendments to the Retail Trade Liberalization Act, which lowered the paid-up capital for foreign retail firms.
• CREATE Law, which cut corporate income tax from 30% to 25%. It will drop again to 20% by 2027.

Benefits of starting a corporation in the country

Starting a corporation in the Philippines brings real perks. These include:

• The country is fertile ground for growth. Because of its location, it is promoted as a gateway to the Asia-Pacific region.
• The workforce is skilled and speaks English well. As a result, teams communicate easily at work.
• Labor costs stay low. For example, firms can offer at least a US$500 monthly salary, which goes far locally.
• You can also tap tax perks. These include tax holidays, duty-free imports of equipment, and simpler customs steps.

Guidelines and limitations in ownership

Both local and foreign groups can start a corporation here. However, they must follow the ownership rules.

Domestic ownership

A company is domestically owned when it has at least 60% Filipino ownership. So Filipino citizens can start a corporation in any sector. Meanwhile, foreign groups can hold up to 40% in these firms.

Foreign ownership

Foreign ownership applies when foreign involvement runs above 40% and up to 100%. Thanks to the new laws above, more sectors now allow it. Still, some public services keep limits, such as:

• Distribution and transmission of electricity
• Petroleum and petroleum pipelines
• Water distribution systems
• Seaports
• Public utility vehicles

Organizational structure of a Philippine corporation

Types and classifications

The Philippines does not have LLC or PLC corporations. However, it registers similar types. The type depends on ownership, based on the Revised Corporation Code. Here are the main ones:

• Sole proprietorship. One person owns it. So the owner’s personal assets answer claims against the business.
• Partnership. Two or more people or groups run it together.
• One-person corporation. The Revised Corporation Code introduced the OPC. It has a single stockholder. As a result, it mixes limited liability with full control.
• Full corporation. It has at least eight but no more than 15 people acting as one entity.

Owners can register a stock, non-stock, or foreign corporation. Stock corporations share income and dividends with shareholders and the board. Meanwhile, non-stock corporations do not share income with members.

Composition

A typical Philippine corporation has shareholders, directors, and officers.

Shareholders own the corporation and hold shares. So they can vote on key matters and receive dividends.

Directors make strategic choices and guide the company. Shareholders elect them. In addition, directors keep the firm compliant with the law.

The board appoints officers. They handle daily operations and manage areas like finance, operations, and human resources.

How to start a corporation in the Philippines in 2026

You can start a corporation in the Philippines online with a verified address and contact. The SEC has also made the paperwork simpler. So let us walk through the steps.

Verify and secure a corporation name

First, you verify and reserve a unique corporation name. The name must be distinct. It should not match any existing firm or trademark. The SEC lets you verify corporation names online or at its offices. Then you pay PHP 100 to reserve the name for a set period.

Register with the Securities and Exchange Commission (SEC)

Next, you register with the SEC as a stock, non-stock, or foreign corporation. First, prepare your articles of incorporation, bylaws, and treasurer’s affidavit. Then file them with the SEC. The SEC also sets capital requirements for local and foreign firms. After that, pay the fees and wait for approval. It usually takes two to three weeks to get your Certificate of Incorporation.

Register with the Local Government Unit

You must also register with the local government unit (LGU) where you will operate. So secure these clearances and licenses first:

• Mayor’s permit
• Barangay clearance
• Building permit from the Municipal Hall

Acquire registration with the BIR

Next, register with the Bureau of Internal Revenue (BIR). You get a tax identification number (TIN) and sign up for the right taxes. You can do this through the NewBizReg portal or at your regional district office (RDO).

Register as an employer to file employee benefits

If you plan to hire, you must register as an employer with these agencies:

• Social Security System (SSS)
• PhilHealth
• Home Development Mutual Fund (HDMF), also known as the Pag-IBIG fund

Once you register with all three, you can then file your employees’ numbers.

How to start a corporation in the Philippines: Next steps

Congratulations! You have started your corporation. However, the work does not end here. So consider these next steps for long-term success:

• Build a clear business plan with your goals, strategies, and target market.
• Grow a strong network of contacts and clients in your industry.
• Set up a solid marketing plan to promote your products or services.
• Meet all reporting rules and deadlines from the SEC, BIR, and other agencies.
• Also stay updated on new laws and policies that affect your business.

Frequently asked questions

How long does it take to start a corporation in the Philippines?

SEC approval usually takes two to three weeks. After that, you still need LGU, BIR, and employer registrations. So plan for about one to two months in total.

Can foreigners fully own a corporation in the Philippines?

Yes, in many sectors foreigners can now own up to 100%. However, limits still apply to some public services, such as water and electricity distribution.

How much capital do you need?

It depends on the corporation type and ownership. The SEC sets minimum paid-up capital rules. For example, some foreign-owned firms face higher minimums than local ones.

What is a one-person corporation?

It is a corporation with a single stockholder. As a result, one owner gets limited liability and full control at the same time.

Do you need to register with the BIR right away?

Yes. You need a TIN and tax registration before you operate. So handle the BIR step soon after your SEC approval.

Key takeaways

• To start a corporation in the Philippines, you move through the SEC, LGU, BIR, and employer steps in order.
• Local firms need at least 60% Filipino ownership. Meanwhile, many sectors now allow full foreign ownership.
• New laws like the CREATE Law lowered corporate income tax and eased entry for investors.
• Plan for about one to two months, and budget for fees at each stage.

Starting a corporation in the Philippines can be exciting and rewarding. By following these steps, you are well on your way to a thriving business. Good luck on your journey!