Setting up a Business Entity in the Philippines for Foreigner
Looking to set up a legal entity in the Philippines whereby more than 40% of the shareholders are of Foreigner or a Foreign entity, you have come to the right place.
Here at vOffice Philippines, we have assisted over 500 Foreign individuals or entities to set up their business in the Philippines. If you are looking to set up a Business in the Philippines whereby Foreign Individual or Entity will only own up to 40% shares in the Company, please refer to Domestic Corporation.
Learn moreTypes of Company Structures that are designated by law that allow 40% or more of its shareholders being foreigners or foreign entities.
Foreign-owned Domestic Corporation
For foreign business owners who want to expand their business into the Philippines and to tap on to its huge and growing market.
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Branch Office
For foreign companies who want to expand their business into the Philippines without any Filipino partners.
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Representative Office
For foreign companies who seek to establish a corporate presence in the Philippines to provide service to their business back home or other parts of the world.
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Regional Area Headquarters (RHQ)
An administrative branch of a foreign corporation engaged in international trade in the Asia-Pacific (APAC) region and other foreign markets.
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Regional Operating Headquarters (ROHQ)
An extension of a foreign corporation allowed to derive income in the Philippines by performing qualifying services to its head office, affiliates, subsidiaries or branches in the Asia-Pacific (APAC) region and other foreign markets.
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Key Differences about each of the Company Structure
| Foreign-owned Domestic Corporation | Branch Office | Representative Office | Regional Area Headquarters (RHQ) | Regional Operating Headquarters (ROHQ) |
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| Allows up to 100% Foreign ownership | |||||
| Allows up to 100% Foreign ownership |  |
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| Minimum Incorporator | |||||
| Minimum Incorporator | 1 | 1 | 1 | 1 | 1 |
| Corporate Officers | |||||
| Corporate Officers | Minimum of 3 — President can be a Filipino or Foreigner, Corporate Treasurer must be a Resident of the Philippines, Corporate Secretary must be a Filipino | ||||
| Minimum Paid Up Capital that needs to be remitted during the Company Set Up Process | |||||
| Minimum Paid Up Capital that needs to be remitted during the Company Set Up Process | USD200,000 | USD200,000 or USD100,000 if it will hire at least 50 direct employees locally | USD30,000 initially and USD30,000 every subsequent year | USD50,000 initially and USD50,000 every subsequent year | USD200,000 |
| Allowed to generate revenue from the Philippines | |||||
| Allowed to generate revenue from the Philippines | |
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Limited — Can generate revenue from it's own affiliates, branches or subsidiaries only |
| Liability | |||||
| Liability | Limited to the amount invested in the Philippines | Foreign HQ will be fully liable for all liabilities | |||
| Visa and Work Permit Eligibility | |||||
| Visa and Work Permit Eligibility | |
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| Registration Processing Time | |||||
| Registration Processing Time | Within 35 days | Within 50 days | |||
More Info?
To find out the Fiscal Incentives and Non-Fiscal Incentives as well as the relevant Tax Rates, Requirements as well as the cost for each of the Legal Entities, please click on the legal entities below.
Foreign-owned Domestic Corporation Branch Office Representative Office Regional Area Headquarters (RHQ) Regional Operating Headquarters (ROHQ)Need Some Help?
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