<\/div>\n<\/div>\n<\/div>\n<\/div>\n
Typical starting cost range:<\/strong>
\u20b12,000 to \u20b15,000+ for small partnerships and up to \u20b110,000\u2013\u20b120,000+ for corporations with significant capital.<\/p>\n\n You will also need to pay for document notarization<\/strong>, stock transfer books<\/strong>, and possibly legal consultations during the incorporation process.<\/p>\n<\/blockquote>\n
\n Documents You\u2019ll Need<\/h3>\n
For Corporations:<\/p>\n
\n- \n
Name Verification Slip<\/p>\n<\/li>\n
- \n
Articles of Incorporation<\/p>\n<\/li>\n
- \n
By-laws<\/p>\n<\/li>\n
- \n
Treasurer\u2019s Affidavit<\/p>\n<\/li>\n
- \n
Notarized joint undertaking (if applicable)<\/p>\n<\/li>\n
- \n
Proof of inward remittance (for foreign stockholders)<\/p>\n<\/li>\n<\/ul>\n
For Partnerships:<\/p>\n
\n- \n
Articles of Partnership<\/p>\n<\/li>\n
- \n
SEC Application Form<\/p>\n<\/li>\n
- \n
Cover Sheet<\/p>\n<\/li>\n
- \n
Paid-up capital proof (for limited partnerships)<\/p>\n<\/li>\n<\/ul>\n
\n What About Foreign Ownership?<\/h3>\n
Foreigners cannot register a sole proprietorship<\/strong>, but they can own shares in a corporation<\/strong>. The Foreign Investments Act<\/strong> sets specific ownership limits based on the industry:<\/p>\n\n- \n
Up to 100% foreign ownership<\/strong> in most export-oriented or service-based industries<\/p>\n<\/li>\n- \n
Limited to 40%<\/strong> in sectors covered by the Negative Investment List<\/strong> (e.g., mass media, retail trade below capital thresholds)<\/p>\n<\/li>\n<\/ul>\n\n Tip for foreign nationals:<\/strong> Always consult a lawyer or corporate services firm to ensure compliance with capital requirements and visa obligations.<\/p>\n<\/blockquote>\n
\n Comparison Table: DTI vs SEC<\/h2>\n\n
\n
\n\n\nCriteria<\/strong><\/th>\nDTI (Sole Proprietorship)<\/strong><\/th>\nSEC (Partnership\/Corporation)<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n\nLegal Entity<\/strong><\/td>\n| Not a separate entity\u2014business and owner are legally the same<\/td>\n | Registered as a distinct legal entity from its owners<\/td>\n<\/tr>\n | \nOwnership<\/strong><\/td>\n| One individual only<\/td>\n | Requires at least 2 for partnerships; at least 5 incorporators for a corporation<\/td>\n<\/tr>\n | \nLiability<\/strong><\/td>\n| Full personal liability\u2014owner is responsible for debts and lawsuits<\/td>\n | Limited liability\u2014owners are liable only up to their capital investment<\/td>\n<\/tr>\n | \nTaxation<\/strong><\/td>\n| Income is taxed as part of the owner\u2019s personal income<\/td>\n | Subject to corporate income tax; dividends taxed separately if distributed<\/td>\n<\/tr>\n | \nManagement Structure<\/strong><\/td>\n| Sole decision-maker (no board, no shareholders)<\/td>\n | Has a board of directors\/trustees and corporate officers (CEO, secretary, etc.)<\/td>\n<\/tr>\n | \nRegistration Complexity<\/strong><\/td>\n| Simple online process (usually 1\u20132 days)<\/td>\n | Multi-step process involving legal documents and SEC approval (5\u201315 days)<\/td>\n<\/tr>\n | \nRegistration Cost<\/strong><\/td>\n| \u20b1230 to \u20b12,030 depending on scope<\/td>\n | \u20b12,000 to \u20b120,000+ depending on capital and complexity<\/td>\n<\/tr>\n | \nIdeal For<\/strong><\/td>\n| Freelancers, side businesses, micro-enterprises, self-employed<\/td>\n | Startups, tech companies, import\/export, BPOs, NGOs, foreign investors<\/td>\n<\/tr>\n | \nBusiness Name Scope<\/strong><\/td>\n| Only one person may use the business name<\/td>\n | Business name is protected nationwide and can include the word \u201cInc.\u201d or \u201cCorp.\u201d<\/td>\n<\/tr>\n | \nLongevity<\/strong><\/td>\n| Ends upon death of the owner unless transferred manually<\/td>\n | Can exist perpetually and continue beyond the life of shareholders<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n Can Foreigners Register Under DTI or SEC?<\/h2>\nIn the Philippines, foreign ownership is strictly regulated<\/strong>, and the choice between DTI and SEC depends heavily on your nationality and business structure.<\/p>\n\u274c DTI: Generally Not for Foreigners<\/h3>\n\n- \n
Foreigners cannot register<\/strong> a sole proprietorship unless they:<\/p>\n\n- \n
Are former natural-born Filipinos<\/p>\n<\/li>\n - \n
Hold special resident investor visas (SRRV or SIRV)<\/strong><\/p>\n<\/li>\n- \n
Are married to a Filipino and meet specific requirements<\/p>\n<\/li>\n<\/ul>\n<\/li>\n - \n
Even if eligible, foreign-owned sole proprietorships are subject to capital and industry restrictions<\/strong><\/p>\n<\/li>\n<\/ul>\n\n For most foreign nationals, DTI is not a viable route<\/strong> unless they have special status or are registering under a Filipino partner\u2019s name.<\/p>\n<\/blockquote>\n
\n\u2705 SEC: Recommended for Foreign Investors<\/h3>\nForeign individuals and entities who wish to legally own part or all of a business must register through the SEC. Key considerations:<\/p>\n \n- \n
You may form a 100% foreign-owned corporation<\/strong> if the business is export-oriented or not listed in the Foreign Investment Negative List (FINL)<\/strong><\/p>\n<\/li>\n- \n
If your business falls under restricted industries (e.g., retail, media, small-scale trade), foreign equity is limited to 40%<\/strong><\/p>\n<\/li>\n- \n
Foreign corporations may also establish:<\/p>\n | | | | | | | | | | | | | |