The Philippines has rapidly emerged as a preferred destination for foreign and local entrepreneurs seeking tax-efficient company structures, strategic market access, and strong government-backed incentives. With the introduction of the CREATE MORE Act, the country has significantly enhanced its tax holiday programs, making company registration in the Philippines more attractive than ever before.
We present a comprehensive, step-by-step guide on online company registration in Philippines, eligibility for CREATE MORE tax holidays, and the legal framework required to successfully establish a compliant and profitable business presence.
Why the Philippines Is a Strategic Business Destination
The Philippines offers a compelling blend of competitive labor costs, English-speaking workforce, ASEAN market access, and robust tax incentives. The government actively encourages both domestic and foreign company registration in Philippines, particularly in priority industries such as:
- IT-BPM and digital services
- Manufacturing and export-oriented businesses
- Renewable energy and green technology
- Logistics and infrastructure
- Healthcare and life sciences
With the CREATE MORE Act, investors now benefit from extended income tax holidays, reduced corporate tax rates, and enhanced deductions, positioning the Philippines as one of Southeast Asia’s most investor-friendly jurisdictions.
Understanding the CREATE MORE Tax Holidays
The CREATE MORE Act expands upon the Corporate Recovery and Tax Incentives for Enterprises (CREATE) framework, offering longer, clearer, and more predictable tax incentives.
Key CREATE MORE Incentives
- Income Tax Holiday (ITH) of up to 7 years
- 5% Special Corporate Income Tax after ITH period
- Enhanced deductions for labor, R&D, and infrastructure
- VAT zero-rating on qualified exports
- Customs duty exemptions on capital equipment
These incentives apply to businesses registered with BOI, PEZA, or other Investment Promotion Agencies (IPAs).
Types of Business Entities in the Philippines
Selecting the correct structure is critical when registering a corporation in the Philippines.
Domestic Corporation
- Minimum of 2 shareholders
- Can be 100% foreign-owned (subject to Foreign Investment Negative List)
- Ideal for long-term operations and incentive eligibility
One Person Corporation (OPC)
- Single shareholder
- Suitable for small and medium enterprises
- Limited access to CREATE MORE incentives
Branch Office
- Extension of foreign parent company
- Eligible for incentives if registered with IPAs
Representative Office
- Non-income generating
- Not eligible for tax holidays
For full access to CREATE MORE tax holidays, a domestic corporation is typically the optimal choice.
Step-by-Step Process to Register Company in Philippines
Step 1: Business Name Reservation
- Conduct name availability check with the Securities and Exchange Commission (SEC)
- Reserve the corporate name online
Step 2: Capital Structure and Ownership
- No minimum paid-up capital for most sectors
- Certain industries require capitalization thresholds
- Foreign ownership allowed up to 100% in most sectors
Step 3: Drafting of Incorporation Documents
- Articles of Incorporation
- By-laws
- Treasurer’s Affidavit
- Director and shareholder information
Step 4: SEC Registration
- File documents via online company registration in Philippines
- Receive Certificate of Incorporation
Post-Incorporation Registrations
After incorporation, mandatory registrations must be completed:
- Bureau of Internal Revenue (BIR) registration
- Authority to Print official receipts
- Barangay Clearance
- Mayor’s Business Permit
- SSS, PhilHealth, Pag-IBIG employee registrations
- Bank account opening
Compliance at this stage ensures uninterrupted eligibility for tax incentives.
Registering for CREATE MORE Incentives
Investment Promotion Agency Registration
To access CREATE MORE tax holidays, the company must register with one of the following:
- Board of Investments (BOI)
- Philippine Economic Zone Authority (PEZA)
- Clark Development Corporation
- Subic Bay Metropolitan Authority
Qualification Criteria
- Engagement in priority industries
- Minimum investment thresholds
- Job creation commitments
- Export or domestic market focus
Upon approval, the enterprise is issued a Certificate of Registration, confirming eligibility for incentives.
Foreign Company Registration in Philippines
Foreign investors enjoy strong protections and streamlined processes.
Key Considerations
- Compliance with Foreign Investments Act
- Alignment with the Foreign Investment Negative List
- Appointment of resident directors or officers
- Submission of authenticated foreign documents
Foreign companies can register company in Philippines with full operational rights and tax incentive access when structured correctly.
Tax Structure After CREATE MORE Registration
Corporate Income Tax
- Standard CIT reduced to 20%
- Special 5% tax on Gross Income Earned after ITH
Withholding Taxes
- Dividends: Reduced under tax treaties
- Royalties and interest subject to preferential rates
Enhanced Deductions
- 150% deduction on labor expenses
- R&D and training cost deductions
- Power and infrastructure deductions
This structure significantly reduces effective tax burden.
Compliance and Reporting Obligations
To maintain incentive eligibility, companies must ensure:
- Annual financial statement filing
- Quarterly and annual tax returns
- Compliance with IPA performance reports
- Adherence to labor and environmental regulations
Failure to comply may result in suspension or revocation of tax holidays.
Why We Recommend Forming a Company in the Philippines Now
The convergence of CREATE MORE tax holidays, simplified online company registration in Philippines, and strong economic fundamentals creates a unique window of opportunity.
We enable businesses to:
- Structure tax-efficient entities
- Secure long-term incentives
- Ensure regulatory compliance
- Accelerate market entry
The Philippines continues to strengthen its position as a regional investment hub, offering clarity, stability, and profitability for global entrepreneurs.
Conclusion
Forming a company in the Philippines under the CREATE MORE incentive regime offers a powerful combination of tax efficiency, operational flexibility, and government-backed support. With proper structuring, timely registration, and compliance-driven execution, businesses can unlock long-term tax holidays and sustainable growth in one of Asia’s most promising economies.