An in-depth review of the average establishment and annual maintenance costs for a corporation in the Philippines is provided below, specifically updated for 2025. This overview covers government-required fees, standard legal costs, and common recurring expenses for businesses operating as domestic stock corporations.
Average Company Creation Costs in the Philippines (2025)
The typical process of registering a Corporation (Stock Corporation) in the Philippines requires both official registration fees and practical administrative expenses. The following table presents the standard breakdown as per current regulations and professional standards. All values are in Philippine Pesos (PHP) and USD ($), using an indicative exchange rate of PHP 55 = $1 (as of late 2024).
| Cost Item | Amount (PHP) | Amount (USD) |
|---|---|---|
| Minimum paid-up capital requirement (domestic, Filipino ownership) | ₱5,000 | $91 |
| Name reservation fee (Securities and Exchange Commission) | ₱100 | $2 |
| SEC Registration Fee (minimum for PHP 1 million authorized capital) | ₱2,100 | $38 |
| By-laws & Articles of Incorporation notarization | ₱1,000 | $18 |
| Barangay Clearance | ₱500 | $9 |
| Business Permit (Mayor’s Permit) | ₱2,000 | $36 |
| BIR Registration Fee (Form 0605) | ₱500 | $9 |
| Books of Accounts registration (BIR) | ₱100 | $2 |
| Stock Transfer Book | ₱500 | $9 |
| Average lawyer’s fee (incorporation, documentation, filing) | ₱2,200 | $40 |
| Total Estimated Cost | ₱11,000 | $200 |
This total covers government fees, standard notarial costs, and typical legal support for a straightforward incorporation. If circumstances are unusual or more complex, legal and processing fees can vary.
Annual Maintenance Costs for Philippine Corporations
Each year, a standard domestic corporation must fulfill specific regulatory, tax, and local compliance obligations. Maintenance costs can fluctuate depending on business volume and service provider choice. Below is a breakdown of the most common annual expenditures for 2025:
| Annual Cost Item | Amount (PHP) | Amount (USD) |
|---|---|---|
| Annual SEC General Information Sheet (GIS) filing fee | ₱500 | $9 |
| Annual BIR Registration Fee | ₱500 | $9 |
| Mayor’s Permit Renewal | ₱2,000 | $36 |
| Barangay Clearance Renewal | ₱500 | $9 |
| Mandatory accounting services (basic compliance, typical) | ₱3,000 | $55 |
| Optional: Legal retainer/consultation | ₱3,500 | $64 |
| Optional: Audited Financial Statement preparation (Required if annual gross sales >₱3,000,000) |
₱8,000 | $145 |
| Total Estimated Range | ₱6,500 – ₱20,000 | $118 – $364 |
The variance reflects options, such as whether an external legal consultant is on retainer and whether the company is required to submit audited financial statements (this is mandatory at annual revenues above ₱3,000,000).
Relevant Official Sources
- Securities and Exchange Commission (SEC)
- Bureau of Internal Revenue (BIR)
- Department of Trade and Industry (DTI)
Pro Tips for Company Registration and Compliance (2025)
- Reserve your company name early via the SEC reservation portal; the ₱100 fee is nominal but availability can change rapidly.
- Retain scanned digital copies of all filings and receipts for at least five years, as local tax and corporate audits require rapid documentation retrieval.
- Engage a reputable accounting provider before your first fiscal year ends—mandatory audited statements apply at relatively low revenue levels.
- Stay ahead of annual renewals by tracking deadline dates for SEC, BIR, Mayor’s Permit, and Barangay Clearances—missing these deadlines incurs avoidable penalties.
- If your business model or shareholding structure involves foreign elements, review updated paid-up capital requirements directly from the SEC for potential higher thresholds.
To summarize, the baseline cost to set up a standard corporation in the Philippines is about ₱11,000 ($200), while annual maintenance typically ranges from ₱6,500 to ₱20,000 ($118–$364), depending on turnover and compliance obligations. Planning ahead for government deadlines and adapting your compliance approach as the business grows can minimize surprise costs. With streamlined processes and manageable fees for most sectors, the legislative environment in the Philippines remains practical for company set-up and ongoing compliance in 2025.