Entity or EOR? Run the numbers.

An EOR bills you per person, per month, for as long as you use one. Your own Philippine company costs a fixed amount to register and a fixed amount to keep. Move the two sliders and see where the lines cross — for most companies it is the second or third hire.

Your situation

4employees
120
$400service fee only
$150$800

Year-one cost as you hire

EOROwn entity

Employer of Record

₱1,152,000

$19,200

Your own entity, with Korp

₱290,000

$4,833

You would keep

₱862,000

$14,367

At $400 per person per month, the entity becomes the cheaper option at 2 employees — and it does not get more expensive after that.

Neither figure includes salaries, or the SSS, PhilHealth and Pag-IBIG contributions on them. You owe those either way, so they cancel out. Published Philippine EOR fees ran from roughly $199 to $699 per person per month when we last checked, in September 2026; the slider opens in the middle of that range, and you should replace it with your own quote.

The full line-by-line breakdown

Locked

Every cost line on both sides, for the exact numbers you just set — year one itemised, year two onward, and a three-year total. One email, and nothing else unless you ask for it.

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We will send you the summary and nothing else unless you ask. No card, no trial, no drip sequence.

Employer of Record · 4 employees, foreign-owned, $400 per person per month

  • EOR service fee4 × $400 × 12 months₱1,152,000
  • SEC registration and corporate existenceNot included
  • Corporate Secretary in the statutory roleNot included
  • Statutory registers, minutes and the annual GISNot included
  • Registered Philippine business addressAdd-on, where offered
  • Invoicing customers in your own nameNot possible
  • Who legally employs your staffThe EOR does
Year one, all in₱1,152,000

$19,200

Your own entity · with Korp

  • SEC incorporationOne time — foreign-owned₱90,000
  • BIR tax registrationOne time₱30,000
  • Business permits and licencesOne time₱20,000
  • Corporate Secretary₱10,000 × 12 months₱120,000
  • Registered address₱2,500 × 12 months₱30,000
  • Compliance onboarding feeWaived when Korp incorporates you₱0
  • Who legally employs your staffYou do
Year one, all in₱290,000

$4,833

Get a custom quote

Year two onward, per year

  • Your own entity₱150,000$2,500
  • Employer of Record₱1,152,000$19,200
Difference₱1,002,000 a year in your favour

Three-year total cost of ownership

  • Your own entity₱590,000$9,833
  • Employer of Record₱3,456,000$57,600
You would keep₱2,866,000

Not in either column. Salaries, and the employer share of SSS, PhilHealth, Pag-IBIG and the Employees’ Compensation levy — capped together at about ₱6,230 per employee per month — plus 13th-month pay at one twelfth of annual basic salary. You owe all of it either way, so it is left out of both sides rather than added to both. Also excluded: bookkeeping, tax filing, payroll processing, the annual audit, HMO and other benefits, office space, and government fees billed at cost. On the EOR side, security deposits, FX spread and onboarding or offboarding charges vary by provider and are excluded too.

Sources. Entity figures are Korp’s published prices: incorporation from ₱45,000 Filipino-owned and ₱90,000 foreign-owned, BIR tax registration from ₱30,000, business permits from ₱20,000, Corporate Secretary ₱10,000 per month per entity, registered address ₱2,500 per month, three-month minimum on the monthly services. Converted at ₱60 to the dollar, the rate our published price pairs use. The EOR figure is your own input.

These are list prices, not a quoteSend us the plan you actually have — headcount, ownership, timing, and what you need on the accounting side — and we will price it properly.
Get a custom quote

One cost is per person. The other is per company.

That single difference is the whole calculation. Everything else is detail.

01

Per employee, per month

An EOR fee is charged per person on your payroll and it never stops. Ten people cost ten times what one person costs — in year one, and in year five.

02

Per company, once

SEC incorporation, BIR tax registration and your local permits are one-time filings. They cost the same whether you go on to hire one person or fifty.

03

Per company, per month

A Corporate Secretary and a registered address are obligations of the company, not of its payroll. ₱12,500 a month covers both, at any headcount.

04

And then it compounds

Year one is the closest the two options ever get. From year two the entity has no setup cost left, so it runs at ₱150,000 a year while the EOR invoice keeps growing with every hire.

What the calculator leaves out of the entity column

Bookkeeping, monthly and quarterly tax filing, payroll processing and your annual audit are real costs of running your own company. They are not in the calculator because they are not in Korp’s published prices — they are quoted separately, on scope. Add them to the entity side before you decide anything. What the comparison does capture honestly is the part an EOR fee is actually replacing: the corporate registration and compliance layer.

Six line items, every one of them published

The entity column is not an estimate. Each number in it is a price that already appears on this website.

SEC incorporation

From ₱45,000 for a Filipino-owned company, from ₱90,000 where there is foreign ownership. Articles of Incorporation, By-Laws, the treasurer’s affidavit and the Certificate of Incorporation itself.

BIR tax registration

From ₱30,000. The Certificate of Registration, your books of accounts registered through ORUS, and your first set of authorised invoices — the things standing between incorporation and a legal invoice.

Business permits and licences

From ₱20,000. Barangay clearance and the Mayor’s permit from the local government unit with jurisdiction over your registered address.

Corporate Secretary

A named Korp officer holds the statutory role. The annual General Information Sheet, board and stockholder minutes, the Stock and Transfer Book, custody of your records, and a compliance calendar dated against your own by-laws.

Registered address

A compliant business address for your SEC registration and your official correspondence, with mail received, scanned and forwarded. The address a regulator writes to should be one where somebody opens the envelope.

Compliance onboarding

The one-month onboarding fee on the Corporate Secretary retainer is waived for companies Korp incorporates. That is why the calculator shows it at zero — if you incorporate elsewhere and move the compliance work to us later, it applies.

Cost is not the only variable

We sell entities, so treat this as the section where we argue against ourselves. There are four situations where an EOR is the better call and the arithmetic above should not decide it.

01

You are testing whether the market works at all

One or two hires for six months to find out. Incorporating and then dissolving costs more than the EOR fee you would have paid, and closing a Philippine corporation properly is considerably slower than opening one.

02

You need someone employed next week

SEC registration takes roughly 30 days in a clean case, with BIR registration and local permits behind it. An EOR can onboard in days. If the hire cannot wait, use the EOR as a bridge — moving that employee onto your own entity later is routine.

03

You will never have a Philippine presence

No office, no local customers, no local invoicing, and no intention of ever having any. A company you do not otherwise need is overhead with a filing calendar attached.

04

The headcount genuinely stays at one

At a single employee and a low quoted fee, the two columns are close enough that the decision turns on things a slider cannot see. Set the calculator to one person and your real quote and you will see how narrow it gets.

Where it stops working

The pattern we see most often is a company that started on an EOR for entirely good reasons, grew to five or six people, and never revisited the decision. By that point the annual difference is larger than the whole cost of having registered the entity in the first place. If you are past three employees and still employing through an EOR, the arithmetic is worth an hour of somebody’s time.

Hiring is one problem. Existing in the Philippines is another.

An EOR is built for the first. Korp is built for the second. Where the two overlap, here is what each one actually gives you.

CapabilityEmployer of RecordYour own entity, with Korp
Employ your first person within daysWhat it is built forAfter registration, about 30 days
Payroll processing and HR administrationCore product×Not Korp’s scope
Who legally employs your staff×The EOR doesYou do
What happens to the cost as you hire×Rises with every personFlat, per company
SEC registration and corporate existence×Not offeredFrom ₱45,000
Named Corporate Secretary in the statutory role×Not offered₱10,000 / month
Statutory registers, minutes and the annual GIS×Not offeredIncluded
Registered Philippine business addressAdd-on, where offered₱2,500 / month
Invoice Philippine customers in your own name×Not possibleYour own BIR registration
Hold Philippine contracts, IP and bank accounts×Not in your nameIn your company’s name
Register your brand on the Philippine trademark register×Not offeredAvailable
Winding downEnd the contractFormal SEC dissolution

“Employer of Record” here describes the arrangement, not any particular company. Providers differ, and several offer entity setup or a registered address as separate paid services — ask yours what is inside the monthly fee and what is billed on top. Korp figures are our published prices.

Read rows one and four first

An EOR onboards faster than any registration can be completed, and it runs payroll, which Korp does not. If those two rows are what you are actually buying, they matter more than the cost comparison above. Everything below them is the part an EOR fee does not buy you.

Questions about the numbers

Korp is not affiliated with, endorsed by, or acting for any Employer of Record provider, and this page names none. The EOR figure used in the calculator is entered by you and opens at the midpoint of a range we observed in publicly listed pricing in September 2026; it is not a quote and it is not attributed to any provider. Entity figures are Korp’s own published prices, exclusive of government fees, which are billed at cost, and subject to the terms on our pricing page — monthly services carry a three-month minimum. Currency converted at ₱60 to the US dollar, the rate our published price pairs use; real exchange rates move. Nothing on this page is legal, tax, or accounting advice, and no calculator is a substitute for advice on your own situation.

Tell us the plan you actually have

Headcount, ownership, when the first person needs to be employed, and what you need on the accounting side. We will price it against your situation rather than against a slider.