What Are the Real Costs of Registering a Company in the Philippines?
A Founder’s Guide to Budgeting for Setup and Compliance
I. Introduction: Why “Registration Cost” Is Almost Always Misunderstood
Most founders ask: “How much does it cost to register a company?”
What they usually get back is a professional fee for one step (the SEC incorporation)… not the full picture for getting the company operational.
- In reality, company registration in the Philippines is a stack of multiple steps from the SEC incorporation to securing business permits with the city; and getting an understanding of the professional fees, government fees and finally the total cost can be a challenge.
Why this matters: budgeting only for professional fees is a common mistake which can impact greatly the economics and timing of registering in the Philippines
II. The Two Ways Costs Are Quoted
1) Professional-fee-only model (common with traditional firms)
You pay for the professional fees related to registering your business, then government fees + out-of-pocket expenses (OOPE) like transportation costs are billed or reimbursed separately (most of the time without a heads-up on the amounts involved).
This is where founders can get surprised by extra costs that aren’t small when stacked:
- filing fees assessed by the SEC payment form
- courier/transport, printing, notarization
- local permits and inspection fees that vary by city
- professional fees are also usually shown exclusive of Value Added Tax (VAT), so make sure to go through the proposal in detail and consider the 12% VAT in your budget.
2) All-in model (platforms and managed providers)
A single package price that usually includes:
- professional fees inclusive of 12% VAT
- standard government fees and filings
- internal admin expenses (transport, printing, coordination)
Founder takeaway: all-in pricing makes budgeting predictable. Professional-fee-only pricing can look cheaper upfront, but it often isn’t once the “separate billing” starts.
Mayumi tip: Ask for a cost breakdown and a total first-year cost. If they can’t answer cleanly, that’s your first hidden cost: time.
III. The One-Time Setup Costs (What You Actually Pay to Get Live)
A) SEC Incorporation
This is your legal birth certificate: you exist as a corporation.
What’s typically included
- Advice on the most relevant corporate structure for your business
- document preparation (Articles, By-Laws, standard resolutions)
- name reservation and filing fees (charged and assessed through SEC eSPARC payment assessment)
- replying to SEC queries
Typical cost range
- Government fees: ₱2,500–₱5,000 (for an Authorized Capital up to ₱1M)
- Professional fees: ₱30,000–₱150,000 depending on the structure, ownership, and type of provider
- All-in 12% VAT, Government fees, and Other expenses included: ₱40,000–₱160,000
For 100% Filipino straightforward structures, total SEC costs should not go over ₱60,000
Mayumi tip: If your authorised capital is being set “randomly”, you’re not deciding a number. You’re deciding future amendment pain. Calibrate it correctly from the start based on your future plans.
B) BIR Tax Registration
This is your invoice-ready step: you register for taxes, books, and receipts/invoicing.
What’s usually involved
- getting your Certificate of Registration (COR / Form 2303)
- registering books of accounts
- authority to print / invoicing setup
- Paying the documentary stamp tax (DST) for your capital
Typical cost range
- Government fees: ₱5,000–₱7,000+
- DST considering a subscribed capital of up to ₱1M: ₱2,500–₱7,500
- Professional fees: ₱12,500–₱30,000
- All-in 12% VAT and Government fees, and Other expenses and DST included: ₱20,000–₱50,000
Mayumi tip: The BIR step is not enough. If you can’t operate in your city and get paid, you’re not live yet.
C) LGU Business Permits
This is your permission to operate in your city/municipality.
What’s usually included
- Mayor’s Permit
- Barangay clearance
- zoning/fire/sanitary clearances (varies by LGU)
Typical cost range
- Government fees: ₱10,000–₱20,000+ (varies by city and business profile)
- Professional fees: ₱10,000–₱30,000
- All-in 12% VAT, Government fees, and Other expenses included: ₱25,000–₱60,000
Mayumi tip: In parallel to getting your business permits, set up your corporate bank account and fintech solutions to be able to collect ASAP (Unionbank and Wis).
D) Corporate Secretary Setup (initial setup, then yearly arrangement)
This is your statutory backbone: records, governance hygiene, and compliance calendar.
What’s included
- appointing officers properly
- maintaining statutory registers
- GIS tracking and filing rhythm
- optional additional legal support
Typical range: ₱20,000–₱60,000+ per quarter or ₱60,000–₱150,000+ per year depending on actual scope and type of provider
E) Virtual Office / Registered Address (initial setup, then yearly arrangement)
If you don’t have a compliant address, this becomes non-negotiable.
What’s included
- SEC/BIR/LGU-compliant registered address
- mail handling
- (sometimes) basic compliance support
Typical range: ₱9,000–₱15,000+ per quarter or ₱30,000–₱60,000+ per year depending on scope and location
IV. Ongoing Annual Costs Most People Forget
This is the part founders don’t budget… then feel personally attacked every January.
Common recurring costs include:
- SEC annual compliance (e.g., GIS filing, deadlines, internal approvals)
- BIR compliance (monthly/quarterly/annual filings depending on your tax types)
- Business permit renewal (typically every January; many LGUs run renewals up to around 20 January)
- Corporate secretary retainer (board minutes, registers, filings)
- Accounting/payroll/statutory reporting (SSS/PhilHealth/Pag-IBIG contributions once you hire)
Mayumi tip: Registration is a project. Compliance is a rhythm. Plan for the rhythm.
V. How to Budget Like a Founder, Not a First-Time Applicant
Here’s the founder-grade checklist:
- Ask for total first-year costs, not just “SEC registration fee”
- For professional fees only quotes, ask for a breakdown of:
- Government fees
- Professional fees (12% VAT inclusive)
- Reimbursable expenses / OOPE (transport, printing, notarisation, etc.)
- Identify what becomes a recurring annual cost (and when it hits)
Mayumi tip: If you’re choosing a structure because it’s ₱30k cheaper at setup, but it costs you months later in amendments, banking delays, or compliance overhead… You didn’t save money. You deferred pain with interest.
Summary: Founder Recap Table for Costs of Business Registration (Excluding on-going compliance)
Mayumi tip: don’t choose a partner based only on costs. Pick a partner who understands your business model and growth path (foreign ownership, fundraising, multiple shareholders, regulated activities, etc.), designs the structure properly from day one, anticipates the downstream requirements, and provides ongoing support.
korp.ph
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