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If you’re a recent graduate of 3D Academy—or planning to complete your English studies soon—you might be wondering: Can I actually start a business here in Cebu? And how much will it cost me?
The good news is: starting a business in the Philippines is more affordable than in most Western countries. Cebu, in particular, offers a perfect mix of opportunity, affordability, and community. That’s why many former ESL students, freelancers, and young entrepreneurs choose to stay and launch their ventures here.
But it’s important to go in with realistic expectations. The total cost isn’t just about rent or registering a company—it includes legal paperwork, permits, deposits, and even some “surprise expenses” that catch many foreigners off guard.
This article will break down:
The actual startup costs (registration, visas, permits)
Office or store rental costs in Cebu
Ongoing business compliance fees
How to minimize costs if you’re starting small (e.g. freelancing, ESL, online services)
Whether you’re thinking of opening an online English tutoring agency, a small café, a co-working space, or even launching a startup, this guide is designed to help you budget wisely and start legally—without overpaying or getting scammed.
Let’s explore what it really takes—in pesos, not theory—to launch your dream in Cebu.
Setting up a business legally in the Philippines involves more than just registering a name. For 3D Academy graduates planning to launch their own ventures—whether it’s an ESL agency, a freelance operation, or a café—these are the required fees and legal steps you’ll need to budget for.
All figures below are based on Cebu City rates in 2025.
₱10,000–₱15,000
Name reservation
Articles of incorporation
Notarization and processing fees
Official registration via the SEC portal
For foreigners, a domestic corporation is usually required.
Costs can rise slightly if processed through a business law firm.
₱5,000–₱8,000
TIN issuance
Registration certificate (Form 0605)
“Ask for Receipt” authorization
Books of accounts
Official receipts (printed and stamped)
Hiring a local accountant is highly recommended at this stage.
₱5,000–₱10,000+ (varies by business type and location)
Barangay clearance
Zoning clearance
Sanitary permit
Fire safety inspection
Business license from City Hall
If you open a physical shop or office, expect extra inspections and documentary requirements.
₱10,000–₱20,000
For legal guidance, processing, and translations
May include business consulting, visa support, or contract review
️ You can file everything on your own—but errors can delay approvals or cause penalties later.
₱5,000–₱25,000 (depending on the bank)
Required for corporate accounts
Most banks ask for your SEC papers, permits, and IDs
₱15,000–₱35,000+
9(g), SRRV, or SIRV application fees
Visa extension or legal stay while documents are pending
Lawyer or agency fees (optional)
₱50,000–₱90,000 (approx. USD $900–$1,600)
This estimate covers only the legal and compliance costs needed to start a fully registered, foreign-owned business in Cebu. It does not include rent, equipment, staff, or marketing, which we’ll cover next.
Once your business is legally registered, your next major cost will be renting a space and paying for utilities. Depending on your business model, you might need:
A private office
A small physical store or studio
A co-working space
Or just a quiet apartment corner with stable internet
Here’s what you need to know about setting up your business base in Cebu.
Type of Space | Monthly Rent (₱) | Notes |
---|---|---|
Small Office (10–20 sqm) | ₱10,000–₱20,000 | In commercial buildings like Mango Ave, Banilad, IT Park |
Small Retail Shop | ₱15,000–₱30,000 | Depends on foot traffic, location |
Co-working Desk | ₱5,000–₱9,000 | Plug-and-play, fast Wi-Fi, no long contracts |
Home-Based Setup | ₱0 (included in rent) | Ideal for online-only businesses |
Cebu IT Park and Ayala Center are the most premium areas. Banilad, Mandaue, and Mabolo offer better deals.
Utility | Monthly Cost (₱) | Notes |
---|---|---|
Electricity | ₱2,000–₱5,000 | Higher if using A/C full-time |
Water | ₱300–₱600 | Low cost in most areas |
Internet (Fiber) | ₱1,500–₱2,500 | Converge, PLDT, Globe—reliable in most urban zones |
Mobile Data | ₱500–₱1,000 | Optional for backups |
Item | Est. Cost (₱) |
---|---|
Desk + Chair | ₱3,000–₱7,000 |
Laptop / PC | ₱30,000–₱60,000 (or bring your own) |
Printer, router, fan | ₱5,000–₱10,000 |
Many freelancers and ESL agencies start small with just a laptop and online tools.
If you’re not sure whether to rent a full office right away, consider:
Starting from your apartment
Using co-working spaces for meetings
Partnering with other 3D alumni to share a space and split costs
This helps you test your business without heavy monthly overhead.
Even after registering your business and setting up your office, there are several unexpected or recurring costs that many foreign entrepreneurs in Cebu overlook. These “small” fees can add up fast—and can even cause legal or operational problems if ignored.
Let’s take a look at what you need to prepare for in 2025:
₱5,000–₱15,000/year
Due every January at your local City Hall
Includes health inspection, fire safety, zoning checks, and more
Late renewals incur penalties
Plan ahead and renew early each year to avoid fines or delays in operations.
₱2,000–₱5,000/month
Required for monthly BIR compliance
Includes VAT filing, income tax, books of accounts, and annual audit
Hiring a licensed local accountant is strongly recommended from day one.
₱1,500–₱3,000+/employee/month
Includes:
SSS (Social Security System)
PhilHealth
Pag-IBIG Fund
These are mandatory if you hire full-time Filipino workers.
₱3,000–₱10,000/year
Covers property damage, public liability, employee injury, and more
May be required by some landlords or buildings
₱5,000–₱30,000/year
If you are on 9(g), SRRV, or SIRV, you’ll need periodic renewals
Some visas require annual reports or travel permits
₱2,000–₱5,000+/month (variable)
A/C cleaning, plumbing, electricity problems
Printer, router, or hardware breakdowns
Legal consultation if needed
Category | Monthly Cost (₱) |
---|---|
Rent & Utilities | ₱18,000 |
Internet & Mobile | ₱2,000 |
Bookkeeping | ₱3,000 |
Gov’t & Renewal Reserves | ₱2,500 |
Visa Set-Aside (annual avg.) | ₱2,000 |
Miscellaneous | ₱2,500 |
Total | ₱30,000–₱35,000/month (~USD $520–$600) |
Reality Check: Starting a business is still affordable compared to the U.S. or Japan—but it’s not “zero cost.” Planning ahead for these ongoing costs is what separates stable entrepreneurs from those who burn out early.
Starting a business in Cebu is exciting, affordable, and realistic—especially for 3D Academy graduates who already know the local culture, understand the cost of living, and have built a network here. But affordability doesn’t mean “free.”
If you want to build something sustainable, you need more than a business idea. You need a clear financial plan.
Legal startup costs for foreigners range from ₱50,000 to ₱90,000 ($900–$1,600)
Monthly operating expenses typically fall between ₱30,000–₱50,000 depending on your setup
Unexpected costs (like permit renewals, equipment repairs, visa fees) can easily add ₱5,000–₱10,000 per month if unplanned
✅ Start lean. Begin with a home office or co-working desk before renting your own space
✅ Go digital-first. Online services and freelance models have the lowest overhead
✅ Register everything legally. It may feel slow, but it protects you in the long run
✅ Track every peso. Use simple tools like Google Sheets or accounting apps from day one
✅ Don’t wait to hire a local accountant. They will save you time, money, and stress
✅ Set aside a 3-month runway. Cover rent, utilities, and compliance even without income
✅ Ask former 3D students. Many alumni have started businesses and can offer insight or referrals
The dream of going from student to entrepreneur in Cebu is real—and achievable. With the right preparation, legal compliance, and smart budgeting, you can join a growing group of foreign founders making an impact in the Philippines.
Don’t just leave with better English. Leave your mark as a founder.