Opening a company in the Philippines: locals, foreigners, freelancers and digital nomads

At a glance: Domestic corporation or One Person Corporation (OPC), no minimum capital for Filipino firms but USD 200,000 paid in for most foreign-owned ones, SEC eSPARC approval in days and full permits in 4 to 8 weeks, 25 percent corporate tax (20 for small firms), 12 percent VAT above PHP 3 million, digital nomad visa ordered in 2025. Legal forms. Sole proprietorship: DTI business name (PHP 230 to 2,030), BIR and city permits, unlimited liability. Domestic stock corporation (Revised Corporation Code 2019): 1 to 15 incorporators, no minimum paid-up capital unless a special law applies. One Person Corporation (OPC): a single natural person, no board, but a secretary and treasurer named. Domestic market enterprises over 40 percent foreign-owned need USD 200,000 paid in (about 175,000 euros), USD 100,000 with advanced technology or 15 Filipino employees; exporters are exempt; foreign retailers need PHP 25 million. Registration. SEC through the eSPARC portal: filing fee one fifth of 1 percent of authorised capital, minimum PHP 2,000; no notary online, foreign documents apostilled. Then BIR registration (annual fee abolished in 2024), documentary stamp tax on the shares, barangay clearance, the mayor's permit (about PHP 5,000 to 20,000) and SSS, PhilHealth and Pag-IBIG numbers. Taxes 2026. Corporate income tax 25 percent; 20 percent for domestic corporations with net taxable income up to PHP 5 million and assets up to PHP 100 million, and for registered enterprises under CREATE MORE. Dividends: 10 percent final tax for resident individuals, 25 percent for non-resident foreign corporations (15 with tax sparing, 10 to 15 by treaty). VAT 12 percent, mandatory above PHP 3 million gross sales (about 45,000 euros); below that 3 percent percentage tax. Personal income tax nil up to PHP 250,000, top rate 35 percent above PHP 8 million (about 120,000 euros). Aliens are taxed only on Philippine-source income. Freelancers and the self-employed. Register with the BIR as a self-employed professional or sole proprietor (ORUS portal, TIN, registered invoices and books). Below PHP 3 million: 8 percent on gross receipts above PHP 250,000 in lieu of income tax and percentage tax, or graduated rates plus 3 percent percentage tax. SSS is mandatory at 15 percent of a salary credit from PHP 5,000, PhilHealth 5 percent from PHP 10,000, Pag-IBIG PHP 200: about PHP 1,450 a month (about 22 euros) at the floor. Foreigners. The 13th Foreign Investment Negative List (April 2026) governs: 100 percent foreign ownership in most manufacturing, services, IT, renewable energy, telecoms and airlines; 40 percent cap for public utilities, land-owning companies, natural resources and education; zero for mass media, private security and retail below PHP 25 million. No resident director rule, but the corporate secretary must be a Filipino resident. A working founder needs an Alien Employment Permit and a 9(g) visa, the Special Investor's Resident Visa for USD 75,000 invested. Incorporation works by apostilled power of attorney, but banks want signatories in person. Branch of a foreign company. A branch obtains an SEC licence to do business (apostilled parent documents, board resolution, financial statements, a resident agent), remits USD 200,000 assigned capital unless exporting, and lodges a PHP 500,000 securities deposit with the SEC within 60 days. It pays 25 percent on Philippine-source income plus 15 percent branch profit remittance tax. Most groups form a subsidiary. Digital nomads. Executive Order 86 of April 2025 created a Digital Nomad Visa for people over 18 working remotely for employers or clients abroad with sufficient foreign income, health insurance, a clean record and a passport from a country offering Filipinos a similar visa; one year, extendable once, no local employment. The fallback is visa-free entry (30 days for most nationalities) extended up to 36 months. Aliens pay tax only on Philippine-source income, so foreign remote income stays untaxed. Changed recently. BIR annual registration fee abolished (January 2024); CREATE MORE cut tax for registered enterprises to 20 percent (November 2024); SSS contribution rate 15 percent (January 2025); Digital Nomad Visa executive order (April 2025); 12 percent VAT on foreign digital service providers (June 2025); 13th Foreign Investment Negative List (April 2026). Figures checked October 2026 from the Securities and Exchange Commission, the Bureau of Internal Revenue, the Bureau of Immigration and PwC and Philippine law-firm pages; thresholds and fees change yearly. Confirm with a licensed adviser in the Philippines before you file.