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.

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Types 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)
  Allows up to 100% Foreign ownership
Allows up to 100% Foreign ownership
  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 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
  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)
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