From Student to Startup: 5 Essential Tips for Foreign Entrepreneurs in Cebu

From Student to Startup: 5 Essential Tips for Foreign Entrepreneurs in Cebu

Have you just graduated from 3D Academy and are dreaming of turning your English journey into a business opportunity in the Philippines?
You’re not alone. More and more international students are deciding to stay in Cebu after graduation—not just to enjoy the beaches or culture, but to build something meaningful: their own business.

But starting a business in a foreign country comes with its own set of challenges. From visa types and legal requirements to banking systems and local business rules, there’s a lot you’ll need to understand before making your first move.

In this article, we’ll walk you through five essential tips that every foreigner—especially 3D Academy graduates—should know before launching a startup in Cebu. Whether you’re planning to open a café, launch a digital service, or partner with locals, these steps will help you build a strong and compliant foundation.

Let’s begin your transformation from student to entrepreneur—right here in Cebu.

1. Understand the Legal Basics: Can You Even Start a Business as a Foreigner?

Before jumping into business plans, branding ideas, or scouting locations, every foreign entrepreneur in the Philippines needs to ask one key question: “Am I legally allowed to start a business here?” The answer is both yes and it depends.

Under Philippine law, foreigners can start businesses, but there are specific restrictions depending on your nationality, the type of business you want to run, and how much capital you’re bringing in. If you’re a recent graduate from 3D Academy, this is the perfect time to learn how to navigate those rules.

What You Can Do as a Foreigner

The Philippine government generally encourages foreign investment—especially in export-oriented, tech-based, or tourism-related sectors. Many businesses are open to full foreign ownership if you invest at least US$200,000 (around ₱11 million), or US$100,000 (₱5.5 million) if your business meets certain conditions like employing a minimum number of local workers.

But for small startups, especially service-based businesses that cater to locals, this capital requirement is often too high.

What You Cannot Do

There are also industries that are completely off-limits to foreign ownership. According to the Foreign Investment Negative List, these restricted areas include:

• Mass media

• Retail businesses with under US$2.5 million in capital

• Small-scale transportation

• Some agricultural sectors

So if your dream is to open a sari-sari store or a small local shop, unfortunately, that’s not legally viable as a 100% foreign-owned business.

What About Partnerships?

Many foreigners get around these rules by forming partnerships with Filipino nationals. In this arrangement, the local partner holds at least 60% of the company shares, while the foreigner owns the remaining 40%. This is legal, but you must trust your partner completely and have a strong legal contract. Otherwise, you’re risking your entire investment.

Some also register under their spouse’s or trusted friend’s name. This is common but not without risks, especially if the legal documentation isn’t solid. Always consult a local business lawyer before entering any such arrangement.

‍ 3D Academy Graduate Tip:

If you’re a graduate of 3D and already familiar with Cebu, you have a major advantage: local insight. You may already know which industries are growing, what areas are popular, and how to connect with Filipino professionals. Leverage that knowledge. Speak to your local friends, teachers, or business mentors about where to begin, and they may even help you find a trustworthy partner or point you to a safe legal structure.

Can Foreigners Own Businesses in the Philippines? What 3D Academy Graduates Need to Know (2025 Guide)

2. Choosing the Right Visa: Stay Legal While Building Your Dream

You can have the perfect business plan and even local contacts lined up—but without the right visa, your startup dreams in the Philippines could come to a sudden halt. Many new entrepreneurs don’t realize that your visa status directly affects what you’re allowed to do, especially when it comes to managing or owning a business.

Let’s break down the most practical visa options for foreign entrepreneurs in Cebu—especially those who’ve just graduated from schools like 3D Academy.

Option 1: Special Resident Retiree’s Visa (SRRV)

Don’t let the word “retiree” fool you—this visa is surprisingly flexible and used by many younger expats. The SRRV allows you to live indefinitely in the Philippines, and in many cases, you can own or manage a business.

• Pros: Long-term stay, multiple-entry, few renewals needed

• Cons: Requires a time deposit of US$20,000 (varies based on age and pension status)

If you’re looking to settle in Cebu and run your own business for the long haul, this visa gives you peace of mind.

Option 2: 9(g) Pre-Arranged Employment Visa

This visa is designed for foreigners hired by a Philippine company. But here’s the trick: if you start a corporation and register yourself as an employee, you can use this to legally run your own business.

• Pros: Long-term and work-legal; can be renewed annually

• Cons: Requires you to go through employer registration, company paperwork, and hire local staff

Many foreign-owned startups in IT or consulting use this route to “employ themselves.”

Option 3: Special Investor’s Resident Visa (SIRV)

This one is tailored for entrepreneurs investing at least US$75,000 in a Philippine business or in public-listed stocks. It offers permanent residency as long as the investment remains.

• Pros: Permanent stay, multiple-entry, no annual renewal

• Cons: High capital requirement; must be well-documented

If you’re coming with capital and want long-term flexibility, this is ideal.

Option 4: Tourist Visa (with Frequent Renewal)

Some entrepreneurs start this way: enter on a tourist visa, register the business, and later switch to an appropriate visa.

• Warning: You CANNOT legally work or manage the business on a tourist visa. Use it only to scout locations, talk to lawyers, and do planning—not operations.

‍ 3D Academy Graduate Tip:

If you’re still unsure which path fits you, start with an initial tourist visa while consulting an immigration expert in Cebu. Better yet, talk to former 3D students who’ve already launched businesses—they often share insights you won’t find online. Consider reaching out to startup support communities in Cebu like Cebu Chamber of Commerce, or co-working hubs like The Company Cebu.

Visa Options for Entrepreneurs in the Philippines: What 3D Academy Graduates Need to Know (2025 Guide)

3. How Much Does It Cost to Start a Business in Cebu?

If you’re a foreigner thinking of launching a business in the Philippines—especially in Cebu—the first big question is always: “How much money do I need?”

The good news? Starting a business here is much more affordable than in most Western countries. But there are still important costs and legal minimums to consider, especially if you’re aiming for 100% foreign ownership.

Minimum Capital Requirements for Foreigners

According to Philippine law, if you want to fully own a business as a foreign national, you’ll typically need:

• USD $200,000 (approx. ₱11 million) in paid-in capital

• Or USD $100,000 (₱5.5 million) if your business:

  • Employs at least 50 Filipino workers, or

  • Uses advanced technology

These requirements apply to businesses targeting the local market.
If you’re setting up a company that exports at least 60% of its goods/services abroad, the capital requirement can be waived or significantly lowered.

Realistic Budget Breakdown (Lean Startup Model)

For most 3D Academy graduates launching small or online-based businesses, here’s a lean estimate of startup costs:

Total Starter Budget (lean):
₱70,000–₱150,000 (approx. $1,200–$2,500)

What If You Don’t Have That Much?

You have options:

• Start with a local partner (you own 40%) to avoid capital thresholds

• Register a consulting company targeting overseas clients (export-based)

• Begin as a freelancer and scale up to a legal entity later

• Use a co-living or co-working space to avoid high rent costs

‍ 3D Graduate Tip:

Many successful foreign business owners in Cebu did not start with millions. They began with a few thousand dollars, tested their idea with low overhead (e.g. online tutoring, agency work), and reinvested earnings into formal setup and permits.

How Much Does It Cost to Start a Business in Cebu?

4. Step-by-Step: How to Register Your Business in Cebu

Once you’ve chosen your business idea and understand the visa and capital requirements, it’s time to take the big step: legal registration. Registering your business properly is the only way to work legally, open a bank account, issue receipts, and apply for the right visa.

Here’s a simple, foreigner-friendly step-by-step guide to registering your business in Cebu.

Step 1: Decide on Your Business Structure

Most foreigners register as a Domestic Corporation. This allows you to legally own part (or all) of the company, depending on the industry and capital.

If you want full ownership and are investing over $200,000 USD, you can register a 100% foreign-owned domestic corporation.

Step 2: Register with the SEC (Securities and Exchange Commission)

Visit the SEC Company Registration System (CRS) to:

• Reserve your business name

• Choose your business category

• Upload required documents:

  • Articles of Incorporation

  • By-laws

  • Treasurer’s Affidavit

  • Valid IDs of incorporators

Once approved, you’ll receive your Certificate of Incorporation, your business’s official legal birth certificate.

Step 3: Register with the BIR (Bureau of Internal Revenue)

Head to your regional BIR office to:

• Get a TIN (Tax Identification Number)

• Register official receipts and books of accounts

• Pay a registration fee (~₱500)

• Display your BIR certificate at your business site

BIR registration is mandatory even if you’re running an online business.

Step 4: Secure Local Government Permits

At your Barangay Hall and City Hall, apply for:

• Barangay Clearance

• Mayor’s Business Permit

• Zoning and fire safety permits

You’ll need to renew these annually.

Step 5: Open a Business Bank Account

Bring your SEC, BIR, and Mayor’s permit plus IDs and proof of business address. Local banks may require a minimum deposit (₱10,000–₱30,000).

Pro tip: Some banks are more foreigner-friendly than others. Metrobank, BDO, and UnionBank are good starting points.

‍ 3D Academy Graduate Tip:

If this process sounds overwhelming, don’t panic. Many local lawyers and accountants in Cebu specialize in helping foreigners register their businesses. You can even get help through startup incubators, co-working spaces, or referrals from other 3D graduates who’ve done it before.

️Registering a Business in the Philippines: A Step-by-Step Guide (2025 Edition)

5. How to Open a Bank Account as a Foreigner in Cebu

You’ve registered your business. You’ve sorted out your visa. Now it’s time for the next essential step: opening a business or personal bank account in the Philippines.

Without a local bank account, you can’t issue checks, process payments, or build financial credibility with suppliers, clients, or even immigration authorities. Fortunately, Cebu is foreigner-friendly—if you come prepared.

Can Foreigners Open Bank Accounts in the Philippines?

Yes, but you’ll need the correct documentation and the right kind of visa. Most banks will not open an account if you’re only on a tourist visa—they want to see some proof of long-term status or local engagement.

That’s why many 3D graduates open accounts after securing a work visa (9g), SRRV, or registering a local corporation.

What Documents Do You Need?

Here’s a general checklist (requirements vary slightly by bank):

• Valid passport

• ACR I-Card (Alien Certificate of Registration — required for stays over 59 days)

• Secondary ID (driver’s license or national ID from your country)

• Proof of address (e.g. lease agreement or utility bill)

• TIN (Tax Identification Number) – for business accounts

• Business registration documents – SEC Certificate, BIR certificate, Mayor’s permit, etc.

Some banks are stricter than others. It’s best to call or visit the branch first to verify exact requirements before applying.

Which Banks Are Foreigner-Friendly?

Based on 3D graduates and foreign entrepreneur feedback, the most accommodating banks in Cebu include:

• BDO (Banco de Oro) – Large and well-networked

• Metrobank – Trusted and professional

• UnionBank – Great online interface and startup support

• Security Bank – Often flexible with documentation

• LandBank / PNB – More focused on locals, but possible

If you’re setting up a corporate account, make sure to request an account type that can handle incoming international transfers, local payroll, and tax withholding payments.

Tips Before You Go

• Dress neatly and bring originals and photocopies of all documents

• If your business is newly registered, explain it clearly and bring your full SEC folder

• Ask whether the account includes online banking and foreign currency options (USD, EUR)

• Expect an initial deposit requirement of ₱10,000–₱30,000

• Some banks may require a local reference or company secretary to co-sign (not always)

‍ 3D Graduate Tip:

Many 3D alumni recommend opening a personal bank account first, then a business one later once the SEC/BIR process is complete. It’s easier to get started and helps with basic expenses like rent, mobile plans, and receiving payments from overseas clients.

How to Open a Bank Account in the Philippines as a Foreigner (2025 Guide)