Step 01: Business Name/ Business License Usual Business Permits to Obtain 1. Barangay Clearance 4. Building Permit For a Filipino National – Business Name Registration 2. Locational Clearance 5. Mayor’s Permit For a Foreign National – Proper Visa, Business Name Registration 3. Business Permit and other permits needed depending on the nature of business Business Name Registration Step 04: Special Business Permits/Certificates A. Sole Proprietorship Concerned Agency: Concerned National Government Unit Concerned Agency: Department of Trade and Industry (DTI) Sample Special Business Permits/Certificates/Endorsements Address: 2F Metro House Bldg., 345 Sen. Gil Puyat Ave., Makati City 1. Environmental Compliance Certificate Number: (+632) 811-8293/32 For: Project status whether Critical, Non-critical or Certificate of Non- Website: https://bnrs.dti.gov.ph/web/guest/home coverage B. Partnership and Corporation Address: DENR Compound, Visayas Ave, Diliman, Lungsod Quezon, Concerned Agency: Securities and Exchange Commission (SEC) 1116 Kalakhang Maynila Number: (+632) 376-5541 Address: Secretariat Building, PICC Complex Website: www.emb.gov.ph Roxas Boulevard, Metro Manila, Philippines 2. Endorsement from Department of Energy (For BOI registration) Number: (+632) 818-0921/1119 For: Energy related projects Website: http://www.sec.gov.ph/ Address: Energy Center, Rizal Drive,Bonifacio Global City, Taguig City, Visas Number: (+632) 479-2900 A. Concerned Agency: Bureau of Immigration Website: https://www.doe.gov.ph/ Address: Magallanes Dr., Intramuros, Manila, 1002 Metro Manila 3. Department of Labor and Employment (DOLE) Number: (+632) 527-5656/527-3248 For: Companies with 50 or more workers, they are required to Website: http://immigration.gov.ph/ register with DOLE, under the Bureau of Local Employment which Special Visas administers the registration of establishments. B. Special Investor’s Resident Visa (SIRV) Address: Bureau of Local Employment Concerned Agency: Board of Investments 6th Floor, BF Condominium cor. Solana & Soriano St., Intramuros, Address: 385 Sen. Gil Puyat Avenue, Makati City 1200 Manila 1002 Number: (+632) 528-0087 Website: Number: (+632) 896-5167/895-3641 (Incentives Service) www.ble.dole.gov.ph Website: www.boi.gov.ph (not qualified for a foreign sole Employment of foreign nationals requires Alien Employment Permit proprietorship) (AEP) from DOLE C. Special Resident Retirees Visa (SRRV) 4. Bangko Sentral ng Pilipinas Concerned Agency: Philippine Retirement Authority For: For banks, financing companies, pawnshops, money changers, 29th Flr., Citibank Center, 8741 Paseo de Roxas, cor. Makati Ave. and other financial institutions. Number: (+632) 848-1412 Address: A. Mabini St. cor. P. Ocampo St., Malate Manila 1004 Website: https://pra.gov.ph/ Number: (632) 708-7701 Website: www.bsp.gov.ph 5. Land Transportation Office Step 02: Employer-Employee Compliance (Mandatory) For: All land vehicle registration, permits and license (drivers) 1. Tax Payer Identification Number (TIN) Address: LTO Compound, East Avenue, Quezon City 1100 Concerned Agency: Bureau of Internal Revenue (BIR) Number: (+632) 922-9061 Website: www.lto.gov.ph Address: BIR National Office Bldg., BIR Road, Diliman, Quezon City, 6. Other agencies involved depends on the company’s proposed project Philippines Step 05: Incentives (Optional) Number: (+632) 981-7003 Concerned Agency: There are 19 Investment Promotion Agencies mandated to Website: https://www.bir.gov.ph grant incentives subject to qualifications and requirements. 2. Social Security System Board of Investments Concerned Agency: Social Security System (SSS) Address: 385 Sen. Gil Puyat Avenue, Makati City 1200 Address: SSS Building East Avenue, Diliman, Quezon City, Philippines Number: (+632) 897-6682 Number: (+632) 920-6401 Website: www.boi.gov.ph Website: https://www.sss.gov.ph Location specific (Ecozones and Freeport Zones) Inside Economic Zones 3. Health Insurance System Aurora PacificAurora Economic Pacific Zone Economicand ZoneRegional and Freeport Board of InvestmentsArea – Autonomous Concerned Agency: Philippine Health Insurance System (PHIC) Freeport AreaThe Freeport Area of BataanRegion (FAB) of Muslim Mindanao (ARMM) Address: Citystate Centre, 709 Shaw Blvd., The FreeportBases Area of Conversion Bataan (FAB) and DevelopmentSubic Bay AuthorityMetropolitan (BCDA) Authority (SBMA) 1603 Pasig City, Philippines Bases ConversionCagayan and Development Economic Zone AuthoritySubic Clark (CEZA) Alliance for Development Council Number: (+632) 441-7444 Authority (BCDA)Clark Development Corporation(SCAD) (CDC) The Philippine Retirement Authority (PRA) Website: https://www.philhealth.gov.ph Cagayan EconomicThe Clark Zone International Authority (CEZA) Airport Corporation Clark Development Corporation (CDC) The Phividec Industrial Authority 4. Home Development Mutual Fund (HDMF) The John Hay Management Corporation The Clark International Airport Poro Point Management Corporation Concerned Agency: Pag-IBIG Corporation The Mindanao DevelopmentRegional Authority Board (MinDa) of Investments – Autonomous Address: 2nd Floor, JELP Building, 409 Addition Hills, Shaw Boulevard, The John HayPhilippine Management Economic Corporation Zone AuthorityRegion of (PEZA) Muslim Mindanao (ARMM) Mandaluyong City. The MindanaoThe Development Philippine AuthorityRetirement AuthoritySubic Bay (PRA) Metropolitan Authority (SBMA) Number: (+632) 724-4244 (MinDa) The Phividec Industrial AuthoritySubic Clark Alliance for Development Council INDUSTRY & INVESTMENTS BUILDING Website: http://www.pagibigfund.gov.ph Philippine EconomicPoro Point Zone Management Authority Corporation(SCAD) Tourism Infrastructure and Enterprise Zone (PEZA) Regional Board of Investments – Autonomous Region of Muslim Authority (TIEZA) 385 Sen Gil Puyat Avenue, Makati City, Philippines 1200 The PhilippineMindanao Retirement (ARMM) Authority Step 03: Local Business Permits (Mandatory) (PRA) Tourism Promotions Board (TPD) Tel Nos.: (632) 897-6682 / (632) 809-9308 / (632) 895-3640 Concerned Agency: Local Government Unit Subic Bay Metropolitan AuthorityZamboanga (SBMA) City Special Economic Zone Authority www.boi.gov.ph The Phividec Industrial Authority Address: Municipality/Barangay of the Actual Business Location Poro Point ManagementSubic Clark Corporation Alliance for Development Council (SCAD) Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Usual Business Permits to Obtain Tourism Promotions Board (TPD) Zamboanga City Special Economic Zone Authority Address: Regional office where business is located 6. Tax and duty importation of consigned equipment; Number: (+632) 527-8000 7. Additional deduction for labor expense; Bangko Sentral ng Pilipinas Website: www.dole.gov.ph 8. Employment of foreign nationals; A Mabini St. cor. P. Ocampo St., 9. Simplification of customs procedures; Malate Manila, Philippines 3. What are the business entry options in the Philippines? 10. Access to bonded manufacturing warehouse. Landline: (+632) 708-7701 Email: [email protected] Sole Proprietorship B. Other Incentives offered under Special Laws: b.) Remittance of Earnings The government is committed to sustaining the robust A business entity formed by an individual who has full Renewable Energy Act of 2008 (R.A. No. 9513) outlook on the economy as it takes a proactive role in control/authority. 1. Income tax holiday (7 years); In the case of foreign investments, investor has the right to remit earnings from the investments in the currency in which the investment stepping up investment to a whole new level. 2. Duty-free importation of RE machinery, equipment and materials; was originally made and the exchange rate prevailing at the time of Partnership 3. Net Operating Loss Carry-Over (NOLCO); A business entity formed by two or more persons (indefinite 4. Corporate tax rate of 10% after ITH; remittance. This brochure will guide you on the procedures and the number) who bind themselves with the intention of dividing profits 5. Accelerated depreciation; applicable laws that will assist you in doing business in the among themselves. 6. VAT-zero rate on sale of fuel or power generated; c.) Foreign Loans and Contracts Philippines. 7. Cash incentive for missionary electrification; Corporation 8. Tax exemption of carbon credits; Foreign investors have the right to remit, at the exchange rate We invite you to explore opportunities for investments in key A business entity formed by at least 5 to 15 incorporators 9. Tax credit on domestic capital equipment and services. prevailing at the time of remittance, such sums as may be necessary areas of the economy. each of whom must hold at least one share in the company. to meet the payment of interest and the principal on foreign loans and Philippine Mining Act of 1995 (R.A. No. 7942) foreign obligations arising from technological assistance contracts. Domestic Subsidiary 1. Exemption from real property tax and other taxes or assessments of A corporation at least 51% owned by the parent company, pollution control devices; d.) Freedom from Expropriation and organized under Philippine Laws. 2. Income tax-carry forward of losses; 1. Who are qualified to invest in the Philippines? 3. Income tax-accelerated depreciation There shall be no expropriation by the government of the property Representative Office or liaison office deals directly with the clients of represented by the investments or of the property of enterprises Anyone, regardless of their nationality, is welcome to do business the parent company, does not derive income from the host country and Downstream Oil Industry Deregulation Act of 1998 (R.A. No. 8479) except for public use or in the interest on national welfare and defense and invest in the country, in almost areas of economic activities. is fully subsidized by its head office with limited activities: information 1. Income Tax Holiday (5 years); and upon payment of just compensation, In such cases, foreign dissemination and promotion of the company’s products as well as 2. Additional deduction for labor expenses; investors or registered enterprises shall have the right to remit sums 2. Is it possible for foreigners to invest up to 100% capital in quality control of products. 3. Minimum tax and duty of three percent (3%) and value-added tax received as compensation the expropriated property in the currency in which the investment was originally made and at the exchange rate a domestic entity? (VAT) on imported capital equipment; Branch Office of a foreign company carries out the business activities of 4. Tax credit on domestic capital equipment; prevailing at the time of remittance. Yes, it is possible to do so if it meets the following conditions: the head office and derives income from the host country 5. Exemption from contractor’s tax; 6. Unrestricted use of consigned equipment; e.) Right to Requisition of Investment a. Under the Foreign Investments Act of 1991 (Republic Act 70142 as Regional Headquarters 7. Exemption from the real property tax on production equipment or amended by RA 8179), foreign investors are allowed to invest 100% A multinational company engaged in international trading with regional machineries; There shall be no requisition of the property presented by the equity if the proposed activity he intends to venture in is not among headquarter in the country undertakes activities limited to acting as 8. Exemption from taxes and duties on imported spare parts. investment or of the property of enterprises, except in the event of those listed in the FINL (Foreign Investments Negative List). supervisory, communication and coordinating center exclusively for its 9. Such other applicable incentives under Article 39 of Executive Order war or national emergency and only for the duration. Just subsidiaries, affiliates and branches in the Asia-Pacific Region and other No. 226 compensation for the requisitioned property may be remitted in the The FINL is a shortlist of investment areas and activities which may foreign markets. currency in which the investment was originally made and the be opened to foreign investors and/or reserved Filipino nationals. Revised Forestry Reform Code of the of the Philippines (P.D. No. 705) exchange rate prevailing at the time of remittance Regional Operating Headquarters Downloadable Link: A multinational company engaged in international trading with Regional Book Publishing Industry Development Act (R.A. No. 8047) II. In addition, under the ASEAN Comprehensive Investment http://www.boi.gov.ph/files/laws/FOREIGN%20INVESTMENT%20NE Operating Headquarter in the country render services exclusively to its Agreement with other countries, investors are accorded the following, GATIVE%20LIST%20TEN.pdf subsidiaries, affiliates and branches in the Asia-Pacific Region and other Magna Carta for Disabled Persons (R.A. No. 7277) among others: foreign markets. b. If the paid-up capital domestic market enterprise is at least US $ Tourism Act of 2009 (R.A. No. 9593) a.) Free Transaction of Capital 200, 000.00 which may be lowered to US $ 100,000.00 if the 4.) What are the possible incentives schemes available for an following conditions are met: investor? 5.) What are the protections to investments available to The Philippine allows all transfers to investment to be made freely and investors? without delay into and out of its territory, subject to compliance with I. Introduction of advanced technology; A. Incentives offered under the Omnibus Investments Code of 1987 (E. certain requirements imposed by laws and regulations. O. 226): I. Per amended Omnibus Investments Code of 1987, all investors are Concerned Agency: Department of Science and Technology entitled to the basic rights and guarantees provided in the Constitution. b.) National Treatment Address: DOST-NCR Bldg, DOST 1. Income Tax Holiday (ITH) Among the other rights recognized by the Government of the Philippines Compound, Gen. Santos Ave., Bicutan, Taguig City, Philippines a. Six (6) years for projects with pioneer status and for are the following: The Philippines treats all investments equally whether made by Number: (+632) 837-2071 projects located in a Less Developed Area (LDA); foreign or local investors to the extent allowed by Philippine laws. Website: www.dost.gov.ph b. Four (4) years for new projects with non-pioneer status; a.) Repatriation of Investment c. Three (3) years for expansion/ modernization projects c.) Fair and Equitable Treatments Or 2. Duty exemption on imported capital equipment, spare parts, and Foreign investors have the right to repatriate the entire proceeds of the accessories; liquidation of the investment in the currency in which the investment was The Philippines affords to investments fair and equitable treatment II. Employment of at least 50 direct employees. 3. Exemption from wharfage dues and any export tax, duty impost and originally made at the exchange rate prevailing at the time of repatriation and full protection and security accordance with customary fees; as long as it is registered with Bangko Sentral ng Pilipinas (BSP). international law. Concerned Agency: Department of Labor and Employment 4. Tax exemption on breeding stocks and genetic materials; Address: Regional office where business is 5. Tax credit on imported raw materials located Number: (+632) 527-8000