One of the first questions investors ask before applying for PEZA incentives is straightforward:
“How much does PEZA registration really cost?”
As a lawyer advising companies on investment structuring, I always clarify this early:
PEZA registration is not just an application fee—it is a combination of government fees, location costs, compliance expenses, and professional services.
Understanding the full cost structure helps you decide whether PEZA registration truly aligns with your business model.
1. SEC Registration Costs (Pre-PEZA Requirement)
Before applying to PEZA, your company must first register with the Securities and Exchange Commission (SEC).
Typical expenses include:
Name reservation fee
Registration filing fees (based on authorized capital stock)
Legal documentation and notarization
Professional service fees (if assisted)
📌 SEC registration is mandatory and separate from PEZA costs.
2. PEZA Application and Registration Fees
The Philippine Economic Zone Authority (PEZA) charges various fees, which may include:
Application filing fee
Registration fee upon approval
Annual registration fee
Administrative service fees
These amounts vary depending on:
Nature of business (IT-BPM, manufacturing, logistics)
Project size
Capital investment
📌 Fees are generally reasonable compared to the incentives granted.
3. Location Costs (Often the Largest Expense)
PEZA registration requires your business to operate inside:
A PEZA-accredited economic zone, or
A PEZA-registered IT park or building
Costs may include:
Office or facility lease
Security deposits
Association or maintenance dues
Fit-out and renovation expenses
📌 Location cost is usually the biggest financial consideration.
4. Capital Investment Requirement
While PEZA does not impose a fixed universal minimum capital, it evaluates:
Paid-up capital
Capital equipment investment
Operational viability
For manufacturing companies, equipment and facility investments can be substantial.
For IT-BPM companies, office infrastructure and technology setup are primary expenses.
📌 Capital must align with your declared business activity.
5. Professional and Consultancy Fees
Many companies engage professionals for:
SEC registration
PEZA application drafting
Project brief preparation
Compliance structuring
Tax advisory
While optional, professional assistance often reduces delays and prevents costly mistakes.
📌 Professional fees vary depending on project complexity.
6. Ongoing Compliance Costs
After approval, PEZA-registered enterprises must budget for:
Annual PEZA fees
Compliance reporting systems
Accounting and tax services
Internal audit or compliance officers
📌 PEZA incentives require sustained compliance investment.
7. Optional But Strategic Costs
Foreign-owned companies may also incur:
Visa and work permit processing fees
Immigration coordination expenses
Corporate governance support
📌 These costs are operational rather than registration-based.
Is PEZA Registration Expensive?
The answer depends on your perspective.
Yes, there are upfront costs—but when compared to:
✔ Income Tax Holiday (ITH)
✔ Zero-rated VAT benefits
✔ Duty-free importation
✔ Reduced local tax exposure
…many companies find PEZA registration to be financially advantageous in the long term.
📌 The real question is not “How much does it cost?” but “How much does it save?”
Common Cost Misconceptions
❌ “PEZA registration is only for big-budget companies.”
❌ “Application fees are the main expense.”
❌ “Incentives eliminate all taxes.”
📌 Proper budgeting prevents unrealistic expectations.
Final Thoughts
PEZA registration involves:
Government filing fees
Location expenses
Capital commitments
Ongoing compliance costs
However, for qualified export and IT-driven businesses, the tax incentives and regulatory advantages often outweigh the initial investment.
📌 When structured correctly, PEZA registration is not an expense—it is a strategic investment.
Before applying, conduct a realistic cost-benefit analysis and ensure your business model can sustain both compliance and operational commitments.
Navigating the business landscape in the Philippines can be both rewarding and intricate. Whether you’re embarking on a new venture or scaling up, ensuring that your corporate endeavors are in line with local regulations is paramount.
At CBOS Business Solutions Inc., we pride ourselves on simplifying these processes for our clients. As a seasoned professional services company, we offer comprehensive assistance with SEC Registration, Visa processing, and a myriad of other essential business requirements. Our team of experts is dedicated to ensuring that your business is compliant, well-established, and ready to thrive in the Philippine market.
Why venture into the complexities of business registration and compliance alone? Allow our team to guide you every step of the way. After all, your success is our commitment.
Get in touch today and let us be your partner in achieving your business goals in the Philippines.
Email Address: gerald.bernardo@cbos.com.ph
Mobile No.: +639270032851
You can also click this link to schedule a meeting.
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