An EOR charges per employee, every month. Your own company costs a fixed amount to set up and run. Move the sliders to see where the lines cross.
Your situation
4employees
120
More than 40% foreign equity · SEC incorporation ₱120,000
Foreign incorporatorsNon-resident TIN, ₱12,000 each
1
Paid-in capital, not a cost. US$200,000 to sell in the Philippines, US$100,000 under certain conditions, none if 60%+ is exported.
$300service fee only
$150$600
Year-one cost as you hire
EOROwn entity
Employer of Record
$14,400
₱864,000
Your own entity
$12,574
₱754,448
Assumes a domestic corporation with individual incorporators.
Savings with your own entity
$1,826
₱109,552 in year one
At $300 per person per month the two lines meet at 4 employees.
Salaries and government contributions are left out of both sides: you owe them either way. EOR fees typically run $200 to $400 per person a month, so enter your own quote. Read the full guide →
The full line-by-line breakdown
Locked
Every cost line on both sides for the numbers you set: year one, year two onward and a three-year total.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
We’ll email the summary. Nothing else unless you ask.
Employer of Record · 4 employees, foreign-owned (over 40%), $300 per person per month
EOR service fee4 × $300 × 12 months₱864,000
Payroll process, statutory contributions and DOLE complianceIn the fee
Employment liability and labour disputesCarried by the EOR
Employer registrations with SSS, PhilHealth, Pag-IBIGCarried by the EOR
A registered Philippine companyNot created
Contracting with Philippine clientsNeeds an entity
Paid-in capital to commitNone
Year one, all in₱864,000
$14,400
Your own entity · with Korp and an accounting partner
Assumes a domestic corporation with individual incorporators.
SEC incorporationOne time — foreign-owned (over 40%)₱120,000
BIR tax registrationOne time₱30,000
Business permits and licencesOne time₱20,000
LGU fee provisionGovernment fees at the city hall, provisioned₱10,000
Employer registration with SSS, PhilHealth and Pag-IBIGOne time₱20,000
Your own entityCorporate Secretary₱120,000Registered address₱30,000Permit renewal₱20,000Accounting partner₱392,448Business tax and contingencies3% × 4 × ₱650,000₱78,000₱562,448$9,374
Employer of Record₱864,000$14,400
Difference₱301,552 a year, entity ahead
Three-year total cost of ownership
Your own entityYear one, then two years at the year-two rate₱1,879,344$31,322
Employer of Record₱2,592,000$43,200
Difference₱712,656 / $11,878, entity ahead
Not in either column: salaries, government contributions, 13th-month pay, benefits and office space, which you owe either way. Also excluded: government fees beyond the ₱10,000 LGU provision, the audit unless ticked, and EOR extras such as deposits or FX spread.
Paid-in capital is not a cost. Above 40% foreign ownership it is US$200,000 to sell in the Philippines, US$100,000 under certain conditions, or none for exporters. It is equity in your own company, so it sits in no total.
Accounting is an estimate. Partner rates, 12% VAT included, assuming semi-monthly payroll and under 50 transactions a month. The cost steps up at 10, 21, 50, 100 and 200 employees.
Sources. Korp’s published prices, plus a business tax estimate from year two (3% of an assumed ₱650,000 revenue per employee). Year one equals the incorporation package (₱142,500, ₱187,500 or ₱217,500, with three months of Corporate Secretary and address) plus months four to twelve. Converted at ₱60 to US$1.
These are list prices, not a quoteSend us your headcount, ownership and timing and we’ll price your plan.
An EOR fee is charged per person, so it grows with the team. In return the EOR runs payroll and carries the employment liability.
02
Per company, once
SEC, BIR and local permits are one-time filings. They cost the same for one hire or fifty.
03
Per company, per month
Corporate Secretary, registered address, bookkeeping, tax and payroll are company costs: about ₱45,204 a month for 1–9 employees and ₱56,460 for 10–20. They rise in steps, not with every hire.
04
Where the two lines end up
Year one includes registration. From year two the entity costs about ₱562,448 a year for 1–9 employees and ₱697,520 for 10–20, before business tax. The EOR fee keeps growing with the team.
What is, and is not, in the entity column
Included: a full year of compliance at Korp’s published rates, a ₱10,000 LGU fee provision, employer registration, and an accounting partner for payroll, bookkeeping and taxes, 12% VAT included. From year two, the permit renewal and a business tax estimate. Excluded: other government fees and paid-in capital, which is equity, not a cost. Benefits and office space are owed either way, so they’re in neither column.
02 · What the entity figure covers
What the entity figure is made of
Every line except accounting is a published Korp price. Accounting uses a partner’s rates and depends on your transactions, so get it quoted for your scope.
One time
SEC incorporation
₱45,000 if 100% Filipino, ₱90,000 up to 40% foreign, ₱120,000 above 40% foreign. Articles, By-Laws and your Certificate of Incorporation.
One time
BIR tax registration
From ₱30,000. Certificate of Registration, registered books of accounts and your first authorised invoices.
One time
Business permits and licences
From ₱20,000. Barangay clearance and the Mayor’s permit from your city.
₱10,000 / month
Corporate Secretary
A named Korp officer in the statutory role: the GIS, minutes, Stock and Transfer Book, records custody and your compliance calendar.
₱2,500 / month
Registered address
A business address for your SEC and BIR records. We receive, scan and forward your mail.
Waived
Compliance onboarding
The one-month onboarding fee is waived when Korp incorporates your company. It applies if you move an existing company to us.
Estimate — quoted on scope
Accounting, tax filing and payroll
Payroll, contribution filings, bookkeeping and tax returns: the work an EOR fee replaces, so it belongs here. Partner rates, 12% VAT included: ₱32,704 a month for 1–9 employees and ₱43,960 for 10–20, stepping up again at 21, 50, 100 and 200. Bookkeeping depends on your transactions, so treat it as an estimate. An accounting partner does this work, not Korp.
03 · When an EOR is the right answer
Four situations where an EOR is the better tool
We register companies, but in these cases an EOR is the better choice, whatever the numbers say.
01
You’re testing the market
One or two hires for a few months. Opening and then closing a company costs more than the EOR fee, and closing takes longer than opening.
02
You need someone employed next week
A fully operational entity takes six to ten weeks. An EOR can onboard in days, and moving the employee to your own company later is routine.
03
You’ll never have a Philippine presence
No office, local customers or local invoicing, now or later. A company you don’t need is just overhead.
04
You’d rather not carry the administration
Some teams prefer to pay the premium and skip payroll, labour liability and the annual audit. That’s a fair trade the calculator can’t price.
Already on an EOR? Check again as you grow
Many companies start on an EOR for good reasons, grow past the crossover and never revisit it. Run the numbers again as the team grows.
04 · Side by side
Hiring is one problem. Existing in the Philippines is another.
An EOR is built for the first. Korp is built for the second.
What you are deciding about
Employer of Record
Your own entity, with Korp
Employing someone within days
✓What it is built for
·6 to 10 weeks to register
Payroll process, statutory contributions and DOLE compliance
✓In the monthly fee
·Yours, or your accountant’s
Employment liability and labour disputes
✓Carried by the EOR
·Carried by you
Paid-in capital to commit
✓None
·Over 40% foreign: US$200,000 (about ₱12M) unless exempt — information, not a cost
Stopping, if the plan changes
✓End the contract
·Formal SEC dissolution
What the cost does as headcount grows
·Scales with your payroll
✓Steps up by payroll band
A registered Philippine company
·Not created
✓From ₱45,000
Contracting with Philippine clients and earning local revenue
·Needs an entity
✓Your own BIR registration
Corporate Secretary and statutory filings
·Not in scope
✓₱10,000 / month
Holding Philippine contracts, IP and bank accounts
·In the EOR’s name
✓In your company’s name
Applying for BOI or PEZA incentives
·Attach to registered entities
✓Open to apply
Registering your brand on the Philippine trademark register
·Needs an entity or a local agent
✓Available
EOR providers differ, so ask yours what is in scope. A dot means that column is not the tool for the job; the first five rows favour the EOR.
The first five rows belong to the EOR
An EOR onboards faster, runs payroll, carries the employment liability, needs no paid-in capital and stops when you ask. The rest of the table is where a registered company does the job.
→
Run an EOR? We work for you too
An EOR in the Philippines needs its own company, Corporate Secretary and annual filings, often one entity per client structure. Talk to us about corporate secretary cover at portfolio scale.
No. Salaries, government contributions and 13th-month pay are the same either way, so they would change both totals but not the comparison. The calculator compares the cost of the structure itself.
Where does the EOR figure come from?
From you. The slider starts at $300 per person per month, the middle of the typical $200–$400 range. We don’t quote or name any provider, so enter your real quote if you have one.
Why does ownership change the number?
It sets the SEC fee (₱45,000, ₱90,000 or ₱120,000) and adds a ₱12,000 non-resident TIN per foreign incorporator. Above 40% foreign ownership it also raises the paid-in capital question, which isn’t a cost. Everything after registration costs the same.
What is in the entity column, and what is not?
In: SEC, BIR and permits (with a ₱10,000 LGU fee provision), employer registration, non-resident TINs, the Corporate Secretary, a registered address and accounting. From year two: the permit renewal, a business tax estimate (3% of an assumed ₱650,000 revenue per employee) and the annual audit once revenue or assets pass ₱3M. Out: other government fees and paid-in capital. Benefits and office space are owed either way.
How long does registering a company take?
Six to ten weeks for a fully operational entity: SEC, BIR, the Mayor’s permit and employer registration. If your first hire can’t wait, an EOR can bridge the gap.
Can Korp run payroll once the entity exists?
Not directly. Payroll and accounting are handled by our accounting partner. Korp covers registration, the Corporate Secretary role and your corporate filings.
Does the minimum paid-in capital apply to me?
Only above 40% foreign ownership: US$200,000 when selling in the Philippines, or US$100,000 with advanced technology, a startup endorsement or at least 15 direct employees, most of them Filipino. Exporters need none. It’s equity, not a fee, so the calculator keeps it out of the totals.
Is this page saying an EOR is the wrong choice?
No. An EOR suits market tests, urgent hires, small teams and companies that don’t want payroll liability. Past a certain headcount the cost lines cross, and invoicing Philippine clients or applying for BOI or PEZA incentives needs a registered company. Many companies use both, in that order.
Korp isn’t affiliated with any EOR provider and names none. The EOR fee is your input, starting at $300, and isn’t a quote. Entity figures assume a domestic corporation with individual incorporators, using Korp’s published prices and an accounting partner’s rates (12% VAT included), plus a business tax estimate from year two. They include a ₱10,000 LGU fee provision and exclude other government fees and paid-in capital. Converted at ₱60 to US$1. Not legal, tax or accounting advice.
Tell us the plan you actually have.
Headcount, ownership and timing: we’ll price your actual plan.
