Setting Up a PEZA or Foreign-Owned Business in Cebu (MEZ & IT Park Setup)

Guide for foreign investors and BPOs registering an SEC company in Metro Cebu, including PEZA incentives and Mactan Economic Zone requirements.

Metro Cebu is a premier hub for foreign direct investment, IT-BPM operations, and export manufacturing—particularly within Cebu IT Park, Cebu Business Park, and the Mactan Economic Zone (MEZ).

Key SEC & Regulatory Requirements for Foreign Investors

1. Foreign Equity & Capitalization

• 100% Foreign Ownership: Foreign investors can own 100% of a domestic market enterprise provided paid-in capital is at least US $200,000 (or US $100,000 if utilizing advanced technology or employing 50+ direct Filipino workers).
• Export Enterprises: If your Cebu corporation exports at least 60% of its services (e.g., BPO, software development), the $200,000 minimum capital requirement is waived.

2. PEZA & BOI Tax Incentives

Foreign-owned and export-oriented firms in accredited Cebu ecozones can apply for incentives under the CREATE Act through PEZA or the BOI:

• Special Corporate Income Tax (SCIT) rate of 5% or enhanced deductions.
• Duty-free importation of capital equipment.
• Exemption from local business taxes and LGU fees within ecozones.

3. Work Visas & Permits

Foreign executives relocating to Cebu must secure an Alien Employment Permit (AEP) from DOLE Region VII and a 9(g) Commercial Working Visa from the Bureau of Immigration before starting operations.

Expanding into Cebu? CBOS Business Solutions Inc. specializes in foreign entity registration, visa processing, PEZA tax incentive applications, and local corporate secretarial management. Contact our Cebu team today at +63 927 003 2851.