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English-speaking Southeast Asian nation with BPO sector
Region
ASIA PACIFIC
Corporate Tax
25%
Setup Time
3 weeks
Currency
PHP
The Philippines, an archipelago of 7,600 islands, offers English-speaking workforce and BPO industry leadership. The country's company registration framework supports business setup for services operations and market access.
With a population of 115 million, the Philippines offers diverse living from Manila's intensity to Cebu's development. Filipino and English are official languages, with English predominant in business. The tropical climate is warm year-round.
Healthcare varies, with quality private facilities in major cities. Safety varies by location. The cost of living is low by Asian standards.
The friendly culture, English proficiency, and cost advantages attract both business operations and retirees.
Corporate tax rate stands at 25% (20% for smaller companies). Personal income tax reaches 35%. VAT applies at 12%. Various investment incentives exist through PEZA and BOI.
The Philippine peso is managed by the central bank. BPO and services exports drive significant economic activity. Remittances from overseas workers support consumption.
Company registration through SEC (Securities and Exchange Commission) is established. Corporations require minimum five incorporators and five directors, though simplified processes exist for smaller companies. Foreign ownership is restricted to 40% in many sectors, with higher limits in others.
Company formation takes approximately 2-4 weeks. Minimum capital requirements vary. Annual compliance includes various filings.
The Bangko Sentral ng Pilipinas registers virtual currency exchanges. The BSP framework provides regulatory clarity for established operators meeting compliance requirements.
PAGCOR (Philippine Amusement and Gaming Corporation) licenses gaming including POGOs (Philippine Offshore Gaming Operators). The gambling license framework for offshore online gaming has been significant though facing increased regulatory scrutiny and restrictions.
Foreign ownership restrictions affect many sectors. Infrastructure varies significantly. Political environment requires ongoing assessment.
Banking access is available through Philippine banks. Professional services are well-developed, particularly for BPO.
The Philippines suits BPO operations, services centers, and businesses comfortable with ownership structures for their business setup.
Local: Inc
Local: Corporation
Local: Branch
| Corporate Tax Rate | 25% |
| Personal Income Tax Rate | 35% |
| VAT / Sales Tax | 12% |
| Capital Gains Tax | 15% |
| Withholding Tax | 25% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | LOW |
| Currency Controls | SOME |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $10,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF Travel Rule compliant - Philippine Travel Rule under BSP Memorandum M-2023-042 |
| Business Plan Required | Detailed business plan with system walkthrough presentation required during application |
| Personnel Required | Fit and proper directors and key officers overseeing compliance, information security, audit and AML functions |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | BSP publishes list of registered VASPs on official website |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Quarterly |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Bangko Sentral ng Pilipinas (BSP) for VASPs; Securities and Exchange Commission (SEC) for CASPs and securities-related crypto assets |
| Licensing Fee | $100,000 |
| Licensing Fee Details | Registration fee of PHP 100,000 (approx. USD 2,100) plus annual service fee of PHP 300,000 (approx. USD 6,300). Note: BSP VASP moratorium extended past September 2025 - new applications currently not being accepted |
| Permitted Business Models | Virtual asset exchange, virtual asset transfer, virtual asset custody/safekeeping |
| Permitted Activities | Exchange between virtual assets and fiat, exchange between virtual assets, transfer of virtual assets, custodial services, wallet services |
| Restricted Activities | VASP license moratorium in effect (extended from September 2025). New applications not accepted. Existing BSP-supervised financial institutions may still apply |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | No |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $25,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Detailed operational plan of proposed gaming operations required |
| Personnel Required | Key personnel subject to background and probity checks by PAGCOR AML supervision department |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | No |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | PAGCOR publishes licensed operators and accredited service providers |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | No |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Philippine Amusement and Gaming Corporation (PAGCOR) - Electronic Gaming Licensing Department (EGLD) for online gaming |
| Licensing Fee Details | 5% franchise tax on gross gaming revenues (exempts from income tax, VAT). License fees reduced to 30% for land-based casinos and 25% for integrated resorts with online gaming (effective January 2025). Application and processing fees apply |
| Permitted Business Models | B2C domestic online gaming only (POGOs banned July 2024) |
| Permitted Activities | eBingo, eCasino games, sports betting, specialty games, online poker, numeric games - for Filipino players only |
| Restricted Activities | Philippine Offshore Gaming Operators (POGOs) banned as of July 2024. Offshore gaming targeting international markets prohibited. Under FINL, foreign ownership in gambling capped at 40% unless specific PAGCOR investment agreement |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $100,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant - covered by AMLA as amended |
| Business Plan Required | Comprehensive business plan demonstrating demand for service, governance structure, and risk controls required |
| Personnel Required | Fit and proper directors and key officers with governance standards, cybersecurity policies, and risk management frameworks |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | BSP publishes list of registered EMIs, digital banks, and other financial institutions |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Bangko Sentral ng Pilipinas (BSP) for EMIs, digital banks, payment systems, MSBs; Securities and Exchange Commission (SEC) for crowdfunding, lending platforms |
| Licensing Fee Details | EMI-NBFI: Large-scale (≥PHP 25B monthly transaction value) requires PHP 200M capital; Small-scale requires PHP 100M capital. EMI moratorium lifted December 2024. Digital bank minimum capital varies by classification |
| Permitted Business Models | Electronic Money Issuer (EMI), Digital Bank, Operator of Payment System (OPS), Money Service Business (MSB), Remittance Platform Provider (RPP) |
| Permitted Activities | E-money issuance, fund transfers, payment services, remittance, foreign exchange dealing, stored value card issuance |
| Restricted Activities | Banking activities without banking license. Quasi-banking requires separate license. Lending by EMI-NBFIs requires quasi-banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |