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company registration cost philippines

Company Registration Cost Philippines 2026: SEC, BIR & Permit Fees (full Breakdown)

By Global Law Experts
– posted 57 minutes ago

Company registration cost Philippines figures are among the first numbers any founder needs before committing capital in 2026, yet clear, itemised data is surprisingly hard to find. This guide breaks down every layer of fees you should expect, from the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR) to your Local Government Unit (LGU), across the main business structures used in the Philippines. It is written to help both local entrepreneurs working with modest capital and foreign investors budgeting for higher authorised capital and advisory support. Every figure is framed against official Philippine sources, and all costs should be confirmed against current published schedules.

This article is advisory and for informational purposes only. It reflects official Philippine government sources and professional experience, and does not constitute legal representation. Confirm current fees directly with the SEC, BIR and your LGU, or consult a qualified advisor for personalised guidance.

What this guide covers and who it is for

The company registration cost Philippines total is not a single number. It is a stack of separate fees paid to different authorities, plus optional professional fees if you engage an advisor to manage the process. Founders who understand the structure of these costs budget more accurately and avoid nasty surprises during onboarding.

This guide is aimed at three audiences: the local sole proprietor or small corporation founder working with limited capital; the growing SME establishing a fully capitalised domestic corporation; and the foreign inbound investor who must layer document legalisation and compliance costs on top of standard fees. For each, we itemise government charges, documentary taxes, LGU permits and typical advisor ranges, then compare doing it yourself against advisor-supported registration.

Quick cost summary, typical total cost ranges at a glance

Before the line-item detail, the table below shows how the company registration cost Philippines total tends to break down across four common scenarios. Government fees are variable because SEC charges scale with authorised capital and LGU permits differ by city. Treat these as planning ranges to be confirmed against the SEC, BIR and your LGU.

Scenario Government (SEC/DTI) BIR & DST LGU permits Notary/documents Typical advisor fees Timeline
Sole proprietor (DTI-registered) Low Low Low–medium (varies by LGU) Low Low (optional) 1–2 weeks
Small corporation (modest capital) Scales with capital DST on subscribed shares + registration Medium (varies by LGU) Medium Medium 2–4 weeks
Medium corporation (PHP 1M+ capital) Higher (capital-scaled) Higher DST base Medium–high Medium Medium–high 3–5 weeks
Foreign investor (domestic corp/branch) Higher (capital + foreign filing) Higher DST base Medium–high High (legalisation/translation) High (advisory-intensive) 4–8 weeks

The pattern is consistent: for smaller local businesses, government fees dominate and advisor fees are optional; for corporations and foreign investors, documentary and advisory costs grow because more filings, more documents and more compliance touchpoints are involved. Because exact SEC and LGU figures change, always verify against the source pages linked at the end of this article rather than relying on a fixed quote.

Step-by-step fees, SEC registration fees Philippines

For corporations, One Person Corporations (OPCs) and partnerships, the SEC is the primary registering authority under Republic Act No. 11232, the Revised Corporation Code. Understanding how SEC registration fees Philippines are calculated is the single most important part of budgeting, because these fees are not flat, they move with your authorised capital.

How SEC filing fees are calculated

The SEC assesses filing fees for the Articles of Incorporation based on a percentage of authorised capital stock, with additional charges for the by-laws and other documentary requirements. Because the fee scales with capital, a company registering with modest authorised capital pays materially less than one registering with several million pesos. The SEC publishes its official fee schedule, and the exact rate and any minimum or ceiling figures should be confirmed on the SEC website before you file. The Revised Corporation Code removed the minimum authorised capital stock requirement for most domestic stock corporations (unless a specific law provides otherwise), which affects how founders set authorised capital and therefore the fees payable.

Specific SEC charges to budget for

Beyond the primary filing fee, the SEC registration process involves several distinct charges. When budgeting your company registration cost Philippines total, allow for each of the following as separate line items:

  • Name reservation. A modest fee to reserve and verify your proposed corporate name through the SEC’s online system before filing.
  • Filing of Articles of Incorporation. The main capital-scaled fee, calculated as a percentage of authorised capital stock per the SEC fee schedule.
  • Filing of by-laws. A separate documentary charge assessed alongside the Articles for stock corporations.
  • Legal Research Fee. A small statutory add-on applied to SEC filings.
  • Registration of a foreign corporation. Where a foreign entity registers a branch or representative office, additional filing fees apply and typically scale with the assigned capital.
  • Certification and processing charges. Fees for certified true copies of the Certificate of Incorporation and other documents you may need for banking or LGU applications.

SEC fees by entity type

Different structures carry different documentary requirements, which affects the corporation registration fees Philippines founders ultimately pay. The table below is a structural guide, confirm current amounts against the SEC fee schedule.

Entity type Primary fee basis By-laws fee Typical documentary complexity
Domestic stock corporation % of authorised capital stock Applicable Standard, one or more incorporators
One Person Corporation (OPC) % of authorised capital stock Not required (single stockholder) Lower, single incorporator, nominee filings
Partnership Based on partnership capital Not applicable Registration of Articles of Partnership
Foreign branch/representative office % of assigned capital + foreign filing Applicable where required High, legalised parent documents

Note that a sole proprietorship does not register with the SEC at all. Instead, the sole proprietor registers a business name with the Department of Trade and Industry (DTI), which is a comparatively low-cost, straightforward step. That difference alone often makes the sole-proprietor route the cheapest company registration cost Philippines pathway for a single-owner microbusiness, though it carries unlimited personal liability, which a corporation or OPC does not.

BIR registration cost Philippines and tax registrations

Every business must register with the BIR before it can legally issue receipts and pay taxes. The BIR registration cost Philippines component is generally smaller than SEC fees in absolute terms, but skipping or mishandling it creates compliance exposure that dwarfs the fee itself.

The BIR registration process and forms

Registration is done using the correct BIR form for your entity type. Corporations and partnerships register using BIR Form 1903; self-employed individuals and sole proprietors use BIR Form 1901; and Form 1905 is used for updates and transfers. The BIR issues the Certificate of Registration (BIR Form 2303) once registration is complete, and this document confirms your tax types and obligations. Note that, under the Ease of Paying Taxes Act (Republic Act No. 11976), the annual BIR registration fee has been removed. The BIR eServices and registration pages set out the current procedure and requirements.

Documentary Stamp Tax and tax type registration

For corporations, Documentary Stamp Tax (DST) is a significant part of the BIR-stage cost because it applies to the original issuance of shares. DST is calculated on the par value or a statutory basis for the shares issued, which means a company issuing more share capital pays proportionally more. This is why the BIR registration cost Philippines figure rises for medium and foreign-investor scenarios that carry higher authorised and subscribed capital. At registration you also confirm whether you fall under VAT or the percentage tax regime, which shapes your ongoing filing obligations rather than your one-time cost.

Receipts, books and printing

You must also register your books of accounts and secure the authority to issue official receipts and invoices. Where printed receipts are used, the printing itself is a small commercial cost paid to an accredited printer, separate from BIR fees. The table below summarises the BIR-stage items to budget.

BIR item Applies to Cost driver
Registration (Form 1903 / 1901) All entities Registration process (annual registration fee no longer required)
Documentary Stamp Tax (share issuance) Corporations, OPCs Scales with subscribed/issued capital
Registration of books of accounts All entities Low
Authority to print / receipts All entities issuing receipts Printer cost (commercial)
Certification / documentary stamps Various filings Low, per document

Because DST rates and registration procedures are set by the BIR and can be revised, verify the current amounts and forms on the BIR registration page before you file. Getting the tax-type registration right at this stage, VAT versus percentage tax, is more consequential for your annual budget than the registration process itself.

LGU permits and local business permit fees Philippines

Once your entity exists and is BIR-registered, you operate legally in a city or municipality only after securing local clearances. Local business permits fees Philippines founders pay are the most variable part of the whole exercise, because Republic Act No. 7160, the Local Government Code of 1991, grants each LGU the power to set its own business tax rates and permit fees within statutory limits.

Typical LGU fee categories

The specific charges differ by city, but the categories are broadly consistent nationwide. When estimating your company registration cost Philippines total, budget for each of the following at the LGU stage:

  • Barangay clearance. Issued at the barangay level confirming your business address; usually the first local step.
  • Mayor’s / business permit. The core local operating permit, with fees often tied to your declared capital or projected gross receipts.
  • Sanitary permit. Required for many premises-based businesses, sometimes with a health certificate requirement for staff.
  • Fire safety inspection fee. Assessed for the Fire Safety Inspection Certificate, commonly calculated as a percentage of other permit fees.
  • Zoning and other locational clearances. Depending on the LGU and the nature of the business.

Why local business permit fees Philippines vary so much

Because each city or municipal council enacts its own revenue ordinance under RA 7160, the same business can face different local business permit fees in Manila, Makati and Quezon City. Cities with higher commercial density and larger budgets often structure fees differently from smaller municipalities. For this reason, this guide deliberately avoids quoting single fixed municipal figures. Instead, obtain the current fee schedule directly from your target LGU’s business permits and licensing office, or check the Department of the Interior and Local Government (DILG) for guidance on where local ordinances are published. Building your budget on your actual LGU’s ordinance is far safer than relying on a national average.

Other one-time costs, notary, documentary stamps and legalisation

Several smaller one-time costs sit outside the main SEC, BIR and LGU stages but still belong in your company registration cost Philippines budget. Corporate documents such as the Articles of Incorporation and treasurer’s affidavit must be notarised, and notarisation is charged per document or per signature. Documentary stamp tax attaches to certain instruments, including stock subscriptions, as noted above.

Foreign investors carry the heaviest one-time documentary load. Documents executed abroad, such as board resolutions, parent-company certificates and powers of attorney, generally require consular legalisation or apostille (the Philippines is a party to the Apostille Convention), and any non-English or non-Filipino document may need certified translation. These steps add both cost and time, which is why the foreign-investor scenario in the summary table runs longer and higher than a comparable domestic setup. Plan for these early, because sourcing legalised documents from another jurisdiction is often the slowest part of the timeline.

Ongoing and recurring costs in year one

Registration is a one-time event, but compliance is continuous. Founders who budget only for setup underestimate the true first-year cost of running a compliant Philippine company. The company registration cost Philippines figure should therefore be read alongside recurring obligations.

Annual SEC and corporate compliance

Corporations and OPCs must file a General Information Sheet (GIS) with the SEC each year, along with audited financial statements where required. Failure to file on time attracts penalties, so this is a fixed recurring item rather than an optional one. Partnerships also have reporting obligations to the SEC.

Tax filings, bookkeeping and audit

The BIR requires ongoing filings, monthly, quarterly and annual, depending on your tax type and size. Most companies engage a bookkeeper or accounting provider to handle these, and companies meeting the statutory thresholds require an independent audit of financial statements. Audit and bookkeeping fees vary with transaction volume and complexity, so obtain quotes based on your actual activity rather than a flat rate.

Local business tax renewal

Your Mayor’s permit is renewed annually, typically early in the calendar year (commonly in January), with local business tax assessed by your LGU under RA 7160. This renewal, plus the associated clearances, recurs every year for as long as you operate in that jurisdiction. Treat all of these as line items in a rolling annual budget, not one-off costs.

Advisor and service provider fees, what to budget

Beyond government charges, the professional-services layer is where the company registration cost Philippines total varies most between a lean DIY setup and a fully supported one. Engaging a Certified Public Accountant (CPA) advisor or an incorporation specialist buys you accuracy, speed and confidence that filings are correct the first time, which matters most where DST, tax-type selection and foreign-investment rules are involved.

Service offerings generally fall into tiers:

  • Basic documentation support. An advisor prepares and reviews your SEC and BIR paperwork while you handle submissions yourself, the lowest-cost supported option.
  • Standard incorporation package. End-to-end handling of SEC name reservation, filing, BIR registration and initial books setup.
  • Full-service onboarding. Everything above plus LGU permit processing, ongoing bookkeeping onboarding and tax advisory, the option most foreign investors choose.

These packages are estimates and depend on entity type, capital and complexity, so request a tailored quote rather than assuming a fixed figure. Engaging a BIR-accredited tax practitioner adds assurance for the tax-registration and compliance stages. You can review credentials and specialisms through the GLE advisor profile when deciding who to work with.

How to choose an advisor

Rather than chasing a “best firm” ranking, assess candidates against practical criteria: relevant experience with your entity type, BIR accreditation, transparency on which fees are government versus professional, and clear deliverables and timelines. For foreign-investor setups, prioritise advisors who routinely handle legalised documents and foreign-equity questions. The right advisor should itemise your quote so you can see exactly where each peso goes.

DIY vs advisor, time, cost and risk comparison

The core decision for most founders is whether to self-file or engage support. The table below compares the two paths on cost, time and risk. Government fees are identical either way; the difference is the professional-fee layer and the risk you absorb. Figures are indicative ranges to be confirmed against government sources.

Factor DIY (self-filed) Advisor-supported
Government fees (SEC/BIR/LGU) Same Same
Professional fees None or minimal Additional package fee
Typical timeline Longer, learning curve, resubmissions Shorter, parallel processing
Risk of errors / penalties Higher (DST, tax-type, forms) Lower
Best suited to Sole proprietors, simple setups Corporations, foreign investors, complex capital

As a rule, the simpler your structure and the more time you have, the more DIY makes sense. A single-owner sole proprietorship registering a DTI business name and a basic Mayor’s permit is well within reach of a diligent founder. Conversely, once you introduce share capital, DST, multiple incorporators or foreign ownership, the cost of an advisor is usually recovered through avoided penalties and a faster, cleaner launch. The DIY path lowers your immediate company registration cost Philippines outlay but raises the risk you carry, a trade-off worth weighing explicitly.

Special considerations for foreign investors

Foreign founders face additional layers on top of the standard company registration cost Philippines structure. Foreign equity participation is governed by the Foreign Investments Act (Republic Act No. 7042, as amended, including by RA 11647) and related law, which sets out where foreign ownership is permitted, restricted or subject to minimum capital conditions. Some activities are open to full foreign ownership while others sit on the Foreign Investment Negative List or require higher paid-in capital, so confirm your sector’s position before committing to a structure.

Structurally, a foreign company can operate through a domestic corporation with foreign shareholders or by registering a branch or representative office under the Revised Corporation Code (RA 11232). Each route has different capital, filing and documentary implications. Foreign investors should also budget for the legalised and translated documents discussed earlier, and for incentives applications where relevant (for example with the Board of Investments or PEZA). Because the rules interact, foreign-equity thresholds, minimum capital and incentive eligibility all influence one another, this is the scenario where advisory support most reliably pays for itself.

Practical checklist and timeline

The condensed sequence below maps the typical registration journey and who handles each step. A straightforward domestic setup can complete within roughly one to four weeks; foreign-investor setups run longer due to document legalisation.

  1. Name reservation (SEC or DTI). Reserve your corporate name at the SEC, or your business name at the DTI for a sole proprietorship. Handled by: founder or advisor.
  2. Prepare and notarise incorporation documents. Articles, by-laws and supporting affidavits. Handled by: advisor and notary.
  3. File with the SEC and obtain the Certificate of Incorporation. Handled by: founder or advisor.
  4. Register with the BIR. File the correct form, pay DST, register books and secure authority to issue receipts. Handled by: founder or accredited advisor.
  5. Secure barangay clearance and Mayor’s permit. Plus sanitary and fire safety clearances. Handled by: founder or advisor at the LGU.
  6. Open a corporate bank account and begin operations. Handled by: founder.

Example cost tables and printable summary

The tables in this guide are designed to be consolidated into a single planning sheet covering government fees, BIR and DST, LGU permits, one-time documentary costs and advisor ranges. Because SEC and LGU figures change and municipal fees differ by city, treat the consolidated sheet as a template to complete with confirmed figures from the SEC, BIR and your own LGU. For a scenario-specific estimate that reflects your capital, entity type and city, request a tailored quote rather than relying on national averages.

Conclusion

The company registration cost Philippines total is best understood as a layered budget rather than a single price: SEC or DTI fees, BIR registration and DST, LGU permits, one-time documentary costs, and optional advisor fees, each traceable to an identifiable authority. Local sole proprietors can keep costs low and self-manage; corporations and foreign investors face higher, capital-linked fees where advisory support most often pays for itself. Because SEC schedules, BIR rates and LGU ordinances change, verify every figure against the official sources before you commit. For a tailored estimate and end-to-end guidance, explore the Consultancy Business Philippines practical guide and connect with a specialist advisor to model your exact scenario.

Need Expert Advice?

This article was produced by Global Law Experts. For specialist advice on this topic, contact PORFERIO L. BORJA JR. at MG Madrid & Company, a member of the Global Law Experts network.

Sources

  1. Securities and Exchange Commission (Philippines)
  2. Bureau of Internal Revenue (Philippines)
  3. Official Gazette, Republic Act No. 11232 (Revised Corporation Code)
  4. Official Gazette, Republic Act No. 7160 (Local Government Code of 1991)
  5. Department of Trade and Industry (DTI), Business Name Registration
  6. Department of the Interior and Local Government (DILG)
  7. BIR, List of Accredited Tax Practitioners

FAQs

How much does it cost to set up a company in the Philippines in 2026?
There is no single figure. The company registration cost Philippines total combines SEC or DTI fees, BIR registration and Documentary Stamp Tax, LGU permits, notary and documentary costs, and optional advisor fees. Sole proprietorships are cheapest; corporations and foreign-investor setups cost more because fees scale with capital. Confirm current amounts with the SEC and BIR.
SEC filing fees for the Articles of Incorporation are calculated as a percentage of authorised capital stock, plus charges for by-laws, name reservation and a legal research fee. Because they scale with capital, higher-capitalised companies pay more. Verify the exact rates on the SEC’s official fee schedule before filing.
Yes. Every business must register with the BIR before issuing receipts. Corporations and partnerships use Form 1903 and sole proprietors use Form 1901. Under the Ease of Paying Taxes Act, the annual registration fee has been removed, but corporations still pay Documentary Stamp Tax on share issuance, which scales with the shares issued. Confirm current figures on the BIR registration page.
You typically need a barangay clearance, Mayor’s business permit, sanitary permit and fire safety inspection fee. Under RA 7160, each LGU sets its own rates within statutory limits, so local business permit fees vary by city. Obtain the current schedule from your specific LGU’s business permits office rather than relying on averages.
A straightforward domestic setup can take roughly one to four weeks. Advisor-supported registration is usually faster because filings are handled in parallel and errors are avoided. DIY can take longer due to the learning curve and possible resubmissions. Foreign-investor setups run longer because of document legalisation.
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Company Registration Cost Philippines 2026: SEC, BIR & Permit Fees (full Breakdown)

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