Domestic Corporation
A separate legal entity established under the Revised Corporation Code, this is the most common structure for trading, investment, and operational businesses in the Philippines.
- Limited liability for shareholders
- Minimum of two incorporators required (natural persons of legal age)
- Foreign ownership permitted up to 100% in non-restricted industries
- Subject to Foreign Investment Negative List (FINL) restrictions
- Certificate of Incorporation required from SEC
One Person Corporation (OPC)
A corporation with a single shareholder serving as both sole director and president, this structure is ideal for entrepreneurs seeking to run a corporation independently without the need for business partners.
- Full authority and control of a sole proprietorship with limited liability protection
- Single stockholder can be a natural person, trust, or estate
- Foreign natural persons permitted in non-restricted industries
- Nominee and alternate nominee must be designated
Branch Office
A corporate entity representing a foreign parent company's operation in the Philippines. Suitable for established overseas corporations expanding operations into the Philippines.
- Extension of a foreign parent company with no independent legal identity
- Parent company retains full legal liability
- Can generate revenue in the Philippines
- Minimum paid-up capital of US$200,000 as a general rule Initial securities deposit of at least PHP 500,000 required
Representative Office
A non-income-generating entity set up by a foreign company, often utilised for assessing the market before proceeding with full incorporation.
- Cannot conduct revenue-generating activities
- Limited to marketing, promotion, information dissemination and client order facilitation
- Annual minimum capital requirement of US$30,000
Regional Headquarters (RHQ)
A non-income generating entity for foreign corporations with international subsidiaries. Suitable for multinational coordination and administrative support functions.
- Functions as a contact centre or back office for administrative oversight
- Cannot generate income or offer services to third parties
- Cannot manage operations of subsidiaries, branches or affiliates
- Minimum annual remittance of US$50,000 from parent company
Regional Operating Headquarters (ROHQ)
An income-generating entity extending the business activities of a foreign parent company. Serves as a regional service hub for multinational group entities.
- Can provide qualifying services to parent company's affiliates, subsidiaries and branches
- Cannot solicit or market products for the parent company
- Cannot offer services to third-party enterprises
- Minimum annual remittance of US$200,000 from parent company
