How to start a business in the Philippines

Southeast Asia has been attracting UK entrepreneurs for years, — and the Philippines, with its English-speaking workforce, young population, and gateway position within ASEAN, is increasingly on the radar. Whether you're planning to relocate, expand an existing operation, or start something entirely new, the opportunity is real. So is the paperwork.

This guide covers everything a UK citizen needs to know about how to start a business in the Philippines, from choosing the right company structure and navigating the registration process, to understanding the costs, tax obligations, and practicalities of managing money across two currencies.

We’ll also touch on how Wise Business can support you as you scale your company globally, helping you trade GBP to and from PHP with low and transparent fees, and no hidden markups.

💡 Learn more about Wise Business

The contents of this article is for informational purposes only and does not constitute legal or tax advice. Decisions related to tax should be made after thorough research, consultation and verification from a qualified financial and legal advisor.

Why start a business in the Philippines?

The Philippines is one of Southeast Asia's fastest-growing economies. According to IMF estimates, nominal GDP is expected to reach approximately US$512 billion in 2026, and exceed US$715 billion by 2030. Strong domestic consumption and a growing services sector are expected to remain key drivers of growth.¹

The MSME (Micro, Small and Medium Enterprises) sector sits at the heart of that growth. According to the Philippine Department of Trade and Industry (DTI), the country had more than 1.24 million registered business establishments in 2023, with MSMEs accounting for 99.63% of all enterprises.²

For UK entrepreneurs, several things stand out:

• English is widely used in professional and business settings, a meaningful advantage when communicating with local staff, clients, and partners
• ASEAN membership gives businesses direct access to a combined market of over 600 million consumers across Southeast Asia³
• A young, skilled workforce with a median age of 23.1 years and high literacy rate, particularly strong in technology, customer services, and finance
• Growing digital infrastructure, with e-commerce and business process outsourcing sectors expanding at pace
• Government incentives available for qualifying businesses through the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA), including income tax holidays and duty-free imports

The UK and the Philippines also maintain established trade and investment ties,⁴ which means UK businesses aren't starting from scratch when building commercial ties.

One important caveat, however, is that foreign ownership restrictions still apply in certain sectors. We'll cover that in the next section.

Can a UK citizen start a business in the Philippines?

Yes, though the rules depend on the sector and the structure you choose.

The key document to understand is the Foreign Investment Negative List (FINL)⁵, which sets out activities where foreign ownership is restricted or prohibited. While many service, manufacturing and export-oriented businesses can be wholly foreign-owned, certain sectors remain subject to ownership limits or other restrictions.

It's worth checking the FINL carefully before settling on your business sector, the restrictions are specific and occasionally updated. The 12th FINL, published by NEDA, is the current version at time of writing.

On the practical side:

• UK passport holders can enter the Philippines visa-free for up to 30 days
• For longer-term business activity, a Business Visa is required from the Philippine Bureau of Immigration
• The Special Investor's Resident Visa (SIRV) may be available if you're making a qualifying investment and want the right to reside⁶

Foreign-owned businesses may also need to meet minimum capitalisation requirements or provide evidence of inward remittance, depending on the industry and ownership structure.

What types of corporate structures are there in the Philippines?

Choosing the right company structure matters, it affects your personal liability, your tax position, and what your business can legally do. Here are the main options:

Sole Proprietorship

The simplest way to start a business. The company and the owner are legally the same, which means you’re personally responsible for any debts or obligations. It’s registered with the Department of Trade and Industry (DTI).⁷

Partnership

A structure for two or more people starting a business together, sharing capital, skills, or resources. It’s registered with the Securities and Exchange Commission (SEC). In a general partnership, all partners share full responsibility for the business. In a limited partnership, some partners have liability capped at what they invested.⁸

Corporation

A corporation is a separate legal entity from its owners, which means your personal assets are generally protected from business liabilities. It’s registered with the SEC. A variation of this is the One Person Corporation (OPC), introduced under the Revised Corporation Code (2019)⁹, which allows a single individual to set up a corporation with limited liability, no co-founders required.

Branch Office

If your business already exists outside the Philippines, you can set up a branch locally instead of creating a new company. It operates under the foreign parent company, which remains fully liable for its activities. It’s registered with the SEC.

Representative Office

A representative office lets you explore the market without doing actual sales. It can handle activities like research and promotion, but it cannot earn income locally. It’s fully funded by the parent company and registered with the SEC.

Here's a side-by-side comparison of the structures:

All structures should register with SEC, except sole proprietors who should register with DTI.

Things to know before you start

Registration fees apply at every stage and vary by business type. Budget for notarisation costs and professional legal fees, they add up more than most first-time registrants expect. All documents must be submitted in multiple certified copies to different government offices, so prepare extras in advance rather than making repeat trips.

The Philippine Business Hub is the official government portal and a good starting point for mapping the steps ahead. It offers a step-by-step application flow for sole proprietorships, corporations, and cooperatives.

Foreign entrepreneurs sometimes underestimate how much registration requirements vary by business location and sector. A business in Metro Manila may face different LGU requirements to one in Cebu or Davao. This is one of several reasons why engaging a local Philippine lawyer or licensed consultant before you start can save significant time and cost.

How to register a company in the Philippines, step by step

The company registration process in the Philippines involves multiple government agencies, each with their own requirements. Here's the typical sequence:

1. Verify and register your business name — search name availability via the DTI (sole proprietorships) or SEC (corporations and partnerships); submit up to three preferred names in case your first choice is taken.
2. Register with DTI or SEC — sole proprietors register with the DTI; corporations and partnerships submit articles of incorporation or partnership, board resolutions, and other required documents to the SEC. Foreign-owned companies need additional documents including authenticated board resolutions and proof of minimum inward remittance.
3. Obtain a Mayor's Permit — apply to the Local Government Unit (LGU) where your business will be based. Requirements and fees vary between LGUs, and some sectors require additional permits before a Mayor's Permit is issued.
4. Register with the Bureau of Internal Revenue (BIR) — obtain your Tax Identification Number (TIN), register to issue official receipts, and register for VAT if annual gross sales exceed the BIR threshold.
5. Register for employee social benefits — if hiring staff, register with the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund / Pag-IBIG.
6. Open a business bank account — required for corporate structures to demonstrate minimum capital where applicable, and essential for day-to-day operations.

Realistically, the end-to-end process takes around 2–3 months. Many steps can be started online but in-person visits to government offices are often still required at certain stages. Having all your documents certified and ready before you begin each step is the single most effective way to avoid delays.

How much does it cost to start a business in the Philippines?

Costs vary depending on the structure you choose. The figures below are estimates, verify current fees directly with the relevant authorities before applying.

These are registration costs only. Factor in ongoing costs too: accountancy fees, annual renewal of permits and licences, BIR filing fees, and any sector-specific compliance costs. Foreign-owned businesses in certain sectors may also need to meet minimum paid-up capital requirements, which can be significantly higher. Seek professional advice on capital requirements before choosing your structure.

Tax considerations for foreign-owned businesses in the Philippines

Understanding your tax obligations in the Philippines and how they interact with your home country is an important part of setting up a business abroad.

• The standard corporate income tax rate in the Philippines is 25% for most companies. Smaller domestic companies may qualify for a reduced 20% rate, depending on income and asset thresholds.¹³
• Some companies registered with the Board of Investments (BOI)¹⁴ or located in special economic zones such as PEZA¹⁵ areas may be eligible for tax incentives, including temporary income tax holidays or reduced tax rates, depending on their activity and eligibility.
• Value Added Tax (VAT) is generally set at 12%. Businesses may be required to register for VAT once they exceed the registration threshold set by the Bureau of Internal Revenue (BIR).¹⁶
• Employers must also withhold income tax from employee salaries and remit it to the BIR on a regular basis.¹⁷
• If you’re based in the UK, you may still have tax reporting obligations on income earned through a foreign business. The way this applies depends on your tax residency, domicile, and business structure. The UK and the Philippines also have a double taxation agreement, which may help avoid being taxed twice on the same income, depending on your situation.¹⁸

We do not give investment advice, and you may be subject to pay tax. If you're not sure, seek qualified advice.

Legal obligations and responsibilities

If you employ staff in the Philippines, several employer contributions are mandatory:

• PhilHealth: employer contributions to the national health insurance fund are required for each employee; contributions are split between employer and employee
• SSS: Social Security System contributions are compulsory for all employers with staff; covers sickness, maternity, disability, and retirement benefits
• Pag-IBIG (HDMF): mandatory housing fund contributions for all employers; both employer and employee contribute
• BIR tax filings: employers must withhold and remit income tax from employee salaries monthly, and file annual tax returns

Depending on your sector, additional regulatory requirements may apply. Food handling, healthcare, construction, and financial services businesses typically require sector-specific licences and permits on top of the standard registration package. Check with your local LGU and the relevant regulatory body for your industry.

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Top tips for starting a business in the Philippines

Six things worth knowing before you begin:

1. Check the Foreign Investment Negative List first — before committing to a sector, confirm what level of foreign ownership is permitted. The FINL is updated periodically, so check the current version
2. Engage a local lawyer or business consultant early — requirements differ by structure, sector, and location. Professional guidance will save you significant time and help you avoid costly mistakes during registration
3. Factor in the full timeline — registration typically takes 2–3 months from start to finish; plan your launch date and cash flow around it
4. Prepare multiple certified copies of everything — most government offices require several copies at each submission stage; arriving underprepared means going back
5. Use business.gov.ph — the official online portal streamlines several registration steps and keeps everything in one place
6. Sort your cross-border finances before you move funds — having a multi-currency account ready in advance makes managing GBP and PHP considerably more straightforward from day one

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Go global in the Philippines the smart way, with Wise Business

Running a business across two countries means moving money regularly. Transferring operating capital, paying local suppliers or staff in Philippine pesos, or receiving payments from UK clients. Managing GBP and PHP across separate accounts in different countries can add friction, delays, and costs that compound over time.

Wise Business is one option worth considering for cross-border financial management. With a Wise Business account, you can hold and convert money in 40+ currencies, including GBP and PHP. You can receive payments using local account details in multiple currencies, useful when working with Philippine clients or business partners, and send international transfers using the mid-market exchange rate, with fees shown upfront before you confirm.

Wise is not a bank, but an authorised payment institution regulated in the UK by the Financial Conduct Authority. It won't replace a local Philippine business bank account, which you'll still need for certain registration requirements, but it can complement it by simplifying the GBP-PHP side of your finances.

With Wise Business, you can:

• 🌍 Send money to 70+ countries and pay overseas invoices at the mid-market exchange rate with low, transparent fees and no hidden exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation. See full cashback terms and conditions
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn variable returns on GBP, USD and EUR with Wise Interest (Growth not guaranteed. Your balance will go down in the event of a government default or interest rates going negative.)
• 🔗 Create payment links and QR codes to get paid easily (Card payment acceptance for new Wise Business customers is currently unavailable. Payment methods subject to eligibility and availability.)
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for your domestic and global needs.

Be Smart, Get Wise.

Register for Wise Business ✍️

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Growth not guaranteed. Your balance will go down in the event of a government default or interest rates going negative. Taxes may apply. Investments are offered by Wise Assets UK Ltd. (FRN 839689).

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Disclaimer: The UK Wise Business pricing structure is changed on 26/11/2025. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

Where to find help and support

A few useful resources for UK entrepreneurs starting out in the Philippines:

• Philippine Business Hub — the official government portal for business registration, with step-by-step guidance by structure type
• Board of Investments (BOI) — information on investment incentives, tax holidays, and qualifying criteria
• PEZA — for businesses considering locations within special economic zones, where reduced tax rates may apply
• Go Negosyo / Philippine Centre for Entrepreneurship — resources on financing and growing a business in the Philippines
• Meetup and Eventbrite — useful for finding local business communities and networking events
• UK Department for Business and Trade — Philippines — trade information and in-market support specifically for UK businesses

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Sources:

1. Statista: Gross Domestic Product (GDP) in the Philippines
2. Department of Trade and Industry (DTI): MSME Statistics
3. ASEAN: Official Website
4. GOV.UK: Exporting to the Philippines
5. ASEAN Briefing: The Philippines' 12th Foreign Investment Negative List
6. Board of Investments (BOI): Special Investors Resident Visa (SIRV) Application
7. Business Name Registration System (BNRS): Registration Guide
8. Securities and Exchange Commission (SEC): ESPARC Application
9. LawPhil: Revised Corporation Code of the Philippines (RA 11232)
10. BNRS: FAQ
11. Respicio & Co.: SEC Registration Costs and Processing Fees
12. Bureau of Internal Revenue (BIR): RMC No. 14-2024 (PDF)
13. PwC Tax Summaries: Philippines Taxes on Corporate Income
14. BOI: Downloadable Forms - Incentives
15. Philippine Economic Zone Authority (PEZA): Frequently Asked Questions
16. PwC Tax Summaries: Philippines Other Taxes
17. PwC Tax Summaries: Philippines Withholding Taxes
18. HMRC Internal Manuals: Double Taxation Relief (DT15300)

Sources last checked 16/06/2026