Author: Mark Virgil Lofranco

A frequent point of friction for companies launching in Metro Cebu (Cebu City, Mandaue, Lapu-Lapu) or Davao City is local government jurisdiction. The Short Answer Yes, you still need a Mayor’s Permit (Business Permit), but your local tax obligations are drastically reduced. Understanding the Dual Jurisdiction While PEZA governs your fiscal incentives and national tax…

A common misconception among international founders is that the Board of Investments (BOI) is reserved exclusively for joint ventures or majority Filipino-owned corporations. The Rule: Yes, 100% Foreign Ownership is Fully Allowed Foreign investors can own 100% of the equity in a BOI-registered domestic corporation, provided they satisfy at least one of the following criteria…

Choosing between the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) used to be confusing due to conflicting tax rates. Following the CREATE MORE Act (RA 12066), the incentive structure has been unified under the Strategic Investment Priority Plan (SIPP). Here is how they compare today: Incentive Regime Breakdown Feature PEZA BOI…

For foreign investors eyeing manufacturing in Lapu-Lapu City or IT-BPO scaling in Davao, timing and export quotas dictate when capital can be deployed. 1. How Long Does PEZA Registration Take? Once a complete application is submitted to the PEZA board, the approval process generally takes 30 to 60 days. Under recent ease-of-doing-business initiatives and the…

The rise of hybrid work transformed the Philippine IT-BPM sector, but it also created compliance headaches for PEZA-registered companies that were historically required to operate 100% on-site. The Evolution: From Tight Caps to CREATE MORE Agility Under early post-pandemic rules, PEZA enterprises were strictly capped on how much of their workforce could telecommute without forfeiting…

When expanding operations into key regional hubs like Cebu Business Park or Davao City, many founders ask: Can we register with PEZA without leasing space in an accredited Economic Zone or IT Building? The Short Answer Generally, no. Physical location remains the core prerequisite for PEZA registration. Under the Philippine Economic Zone Authority (PEZA) framework,…

A Strategic Location & Incentive Comparison for IT-BPM Investors in Cebu, Philippines Setting up an IT-BPM (Information Technology and Business Process Management) firm, software house, or shared services center in Cebu is one of the smartest expansion moves a company can make in Southeast Asia. With a deep talent pool, world-class infrastructure, and vibrant tech…

Businesses investing or expanding in the Philippines may be able to reduce their tax burden through government investment incentives. Two of the primary Investment Promotion Agencies (IPAs) are the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI). Qualified projects registered with these agencies may access fiscal and non-fiscal incentives under the Philippines’…

Registering a business with the SEC or DTI is only the beginning of regulatory compliance in the Philippines. Every business also needs to address its obligations with the Bureau of Internal Revenue (BIR). Proper BIR registration establishes the business within the Philippine tax system and determines important compliance responsibilities involving taxes, invoicing, accounting records, and…

Registering your company with the SEC or DTI does not automatically authorize you to operate from a particular location. Businesses in the Philippines must also comply with the requirements of the Local Government Unit (LGU) where their establishment is located. For businesses operating in Cebu City, Mandaue City, Lapu-Lapu City, or Davao City, this normally…