Start Up: Philippine Business Process Outsourcing

By: Pamela Ruth G. Calog, CPA

1 month ago

Business Process Outsourcing (BPO) in the Philippines has grown for the past decade and now is one of the largest sources of private employment opportunities. With the continuous tax reforms, investment and establishment of BPOs in the country is flourishing albeit the intricate start up and registration.


The BPO should be registered with the Bureau of Internal Revenue (BIR) in order to receive a Tax Identification Number (TIN) for tax compliance and reportorial purposes. While business permits should be secured with the local government unit where the business is located including but not limited to community tax certificate and barangay clearance. Notably, registration with the Social Security System (SSS), Philippine Health Insurance Corporation (Philhealth), and Home Development Mutual Fund (HDMF) is mandatory for the BPO as an employer.


For sole proprietorship, the BPO registration can be filed with the Department of Trade and Industry (DTI). For partnership or corporation, it has to be registered with the Securities and Exchange Commission (SEC).


SEC Corporate Set-Up and Registration


  • Branch Office – A foreign corporation extends its operations to generate income by registering a branch office in the Philippines.


Documentary requirements:


  1. SEC Form F-103

  2. Bank Certificate showing paid in capital

  3. Articles of Incorporation and By-laws

  4. Treasurer’s Affidavit

  5. Proof of Inward Remittance

  6. Certified Board Resolution of the Parent Corporation

  7. Latest Audited Financial Statements of the Parent Corporation

  8. Others as required by SEC


Minimum paid-up capital: US$200,000


If it will engage in activities involving technology or employ at least fifty (50) employees, it can be reduced to US$100,000. If it seeks to be an export-oriented enterprise that exports 60% or more of its gross sales, it can be registered with as little as ₱5,000.


  • Representative Office – A foreign corporation sets up a representative or liaison office to test the potential market in the Philippines. Compare to a branch office, it is not required to be registered with SEC. 


SEC Documentary requirements:


  1. SEC Form F-104

  2. Bank Certificate showing paid in capital

  3. Articles of Incorporation and By-laws

  4. Treasurer’s Affidavit

  5. Proof of Inward Remittance

  6. Certified Board Resolution of the Parent Corporation

  7. Latest Audited Financial Statements of the Parent Corporation

  8. Resident Agent Acceptance

  9. Others as required by SEC


Minimum paid-up capital: US$30,000


  • Domestic Corporation – A corporation is registered accordingly in the Revised Corporation Code of the Philippines (RCCP) following the nationality rules. Generally, there should be at least 60% of the stocks are held by Filipinos.


Documentary requirements:


  1. Bank Certificate showing paid in capital

  2. Articles of Incorporation and By-laws

  3. Treasurer’s Affidavit

  4. Registration Data Sheet

  5. Others as required by SEC


Minimum paid-up capital: ₱5,000


It is required to pay in full amount at least twenty-five percent (25%) of the subscribed capital stock, an amount of which should not be less than Php 5,000.00.


  • Fully Foreign-Owned Domestic Corporation – A domestic corporation wherein foreign equity is one hundred percent (100%).


Documentary requirements:


  1. SEC Form F-100

  2. Bank Certificate showing paid in capital

  3. Articles of Incorporation and By-laws

  4. Treasurer’s Affidavit

  5. Others as required by SEC


Minimum paid-up capital: US$200,000


The registration requirements do not apply to export-oriented enterprise or involving advance technology and will employ at least 50 employees.


PEZA Registration


The BPO may also process its registration with Philippine Economic Zone Authority (PEZA) to be avail certain tax incentives: Provided, it is located in a building or an establishment inside a PEZA special economic zone.



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