How much does it cost to register a corporation in the Philippines?
November 14, 2018 |
If you’re starting a business in the Philippines, you will need to pay a number of fees and charges to register your company. To help you prepare, here is a comprehensive overview of how much it costs to register your corporation with the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR).
Calculate your registration fee online
The SEC website features a Registration Calculator that allows stock corporations to calculate their registration fees online.
Simply input your Authorized Capital Stock in Philippine Peso (Php) value and the tool will do the rest. The Calculator will show the total registration amount, along with a breakdown of how the fees are charged for filing, legal research, and by-laws.
A breakdown of SEC fees
The SEC charges the following for stock corporation registration:
- Reservation fee for proposed corporation name (valid for 30 days): Php 100 (fixed)
- Filing fee: 1/5 or 1% of the authorized capital stock but not less than Php 2,000
- Legal research fee: 1% of filing fee but not less than Php 10
- Registration fee for the By-Laws: Php 1,010 (fixed)
- Stock and Transfer Book (including registration of the STB): Php 470 (fixed)
For more details and other fees applicable to different company types, visit the SEC’s official Consolidated Schedule of Fees and Charges.
The BIR’s annual registration fee
For new registration, the BIR will charge a fee of Php 500. This is a recurring registration fee that must be paid annually on or before every 31st of January.
Miscellaneous requirements
In addition to the SEC and BIR fees, we advise you to budget for the following variable expenses:
- Documentary Stamp Tax
Excise taxes apply to documents that prove the acceptance, assignment, sale, or transfer of an obligation, right or property. At the SEC, this can cost around Php 1,500 for a corporation with a Php 1M capital. At the BIR, it may amount to just Php 75.
- Notarial fees and printing costs
Prepare approximately Php 5,000 to pay for notary services and the costs of document printing and reproduction. At the SEC, you can expect to pay up to Php 1,500 mostly for notarial fees, while at the BIR, you can spend up to Php 3,500 for printing several booklets of official receipts for your business.
- Books of Account
When registering with the BIR, you will be required to register your Books of Account as well. There are four to six basic Books of Account that companies need to record their day-to-day transactions. You can purchase accounting journals and ledgers from office supplies stores for about Php 250 to 300.
A sample computation
To illustrate all of the above charges, here is how the overall charges would look for a stock corporation registering with an authorized capital of Php 1,000,000:
Purpose/Application | Amount (Php) |
Securities and Exchange Commission (SEC) | |
Reservation of proposed name | 100.00 |
Filing Fee | 2,000.00 |
Legal research fee | 20.00 |
By-laws | 1,010.00 |
Stock and Transfer Book | 470.00 |
Documentary Stamp Tax (sample estimate) | 1,500.00 |
Sub-total | 5,100.00 |
Bureau of Internal Revenue (BIR) | |
Annual registration fee | 500.00 |
Documentary Stamp Tax (sample estimate) | 75.00 |
Sub-total | 575.00 |
Miscellaneous requirements | |
Notarial services (sample estimate) | 1,500.00 |
Printing of official receipts (sample estimate) | 3,500.00 |
Books of Account (sample estimate) | 250.00 |
Sub-total | 5,250.00 |
TOTAL | 10,925.00 |
Based on this example, the basic cost of registration amounts to nearly Php 11,000. However, take into account the cost of transportation when you go to your nearest SEC and BIR offices, as well as any incidental expenses along the way.
It’s also crucial to understand early on that this process can be tiring and time-consuming, so consider the non-monetary opportunity costs that registering your company may entail. If you have sufficient capital, consider hiring a professional partner to take care of the grunt work.
FilePino has the experience and expertise to help you with your company registration needs. For inquiries, call us today at +1.806.553.6552 (USA) or +63.917.8922337 (Philippines) or send us a message here.
References:
http://www.sec.gov.ph/online-services/sec-company-registration-system/
https://appointment.sec.gov.ph/online-services/sec-company-registration-system/
https://tycoon.ph/cost-starting-small-business-philippines/
https://businesstips.ph/the-cost-of-starting-a-small-business-in-the-philippines/
https://www.bworldonline.com/bir-revised-guidelines-and-procedures-in-registering-new-businesses/
https://mpm.ph/what-are-the-books-of-account/
https://www.securitybank.com/blog/how-to-register-your-online-business-in-bir-and-dti/
