The Philippines has firmly established itself as one of Southeast Asia's most exciting fintech markets. With a young, digitally engaged population, growing smartphone adoption, and a large unbanked segment looking for accessible financial services, the opportunities here are real and substantial. Digital wallets, lending platforms, payment gateways, and remittance services are changing the way millions of Filipinos manage their money every day.
If you're planning to build a fintech business in this market, getting a clear picture of the registration and licensing process is your most important first step.
What Does the Philippine Fintech Landscape Look Like?
The Philippines offers a strong combination of consumer demand and genuine regulatory support for financial innovation. The government is actively committed to financial inclusion, and regulators have built frameworks that encourage new entrants while still protecting consumers.
Key growth areas include:
- Digital payments and e-wallets, driven by widespread mobile adoption
- Online lending platforms serving individuals and small businesses
- Remittance and cross-border transfers, supported by a large overseas Filipino workforce
- Digital banking, following the introduction of dedicated digital bank licenses
The commercial potential is significant, but sustainable success means navigating the regulatory environment carefully from the start. Getting your registrations and licences right not only keeps you legally compliant — it also builds trust with customers, partners, and investors.
What business structure should a fintech company use?
Most fintech ventures in the Philippines incorporate as stock corporations under Republic Act No. 11232 (the Revised Corporation Code of 2019). One Person Corporations (OPCs) are available but rarely suited to fintech, which typically requires institutional capital and multiple shareholders.
Foreign ownership is the first structural question to resolve. Under the Foreign Investment Negative List (FINL), 100% foreign ownership is permitted for most technology and software-based fintech activities. Stricter caps, however, apply to specific categories:
- Electronic Money Issuers (EMIs): generally, require majority Filipino ownership for non-bank issuers
- Financing companies: 40% foreign equity cap
- Digital banks: minimum paid-in capital of PHP 1 billion, with foreign bank entry rules governing ownership
- EMI (Electronic Money Issuer). Governed by BSP Circular No. 649. Non-bank EMIs must be stock corporations with majority Filipino ownership and maintain liquid assets at least equal to outstanding e-money liabilities. Robust AML, KYC, and IT security systems are prerequisites.
- VASP (Virtual Asset Service Provider). BSP Circular No. 1105 (2021) established one of Southeast Asia's first comprehensive VASP frameworks. Crypto exchanges, custodians, and transfer agents require a BSP Certificate of Registration, a minimum capital of PHP 10 million, FATF Travel Rule compliance, and AMLC registration.
- Payment System Operator or Participant. Governed by RA 11127 (National Payment Systems Act, 2018). BSP registration and ongoing compliance reporting are required.
- Lending or financing company. The SEC, rather than the BSP, issues the Certificate of Authority to Operate. Online lending platforms must also comply with SEC Memorandum Circular No. 19, s. 2019, which mandates disclosure of app names and explicit user consent for data access.
Where your fintech model falls under a restricted category, you will need to structure a corporation in which Filipino shareholders hold the required majority, often through a 60/40 arrangement with different share classes to protect investor rights whilst complying with the Anti-Dummy Law.
What Types of Fintech Licences Are Available?
This is the layer that distinguishes fintech registration from ordinary business registration. The required licence depends entirely on what your platform does:
- EMI (Electronic Money Issuer). Governed by BSP Circular No. 649. Non-bank EMIs must be stock corporations with majority Filipino ownership and maintain liquid assets at least equal to outstanding e-money liabilities. Robust AML, KYC, and IT security systems are prerequisites.
- VASP (Virtual Asset Service Provider). BSP Circular No. 1105 (2021) established one of Southeast Asia's first comprehensive VASP frameworks. Crypto exchanges, custodians, and transfer agents require a BSP Certificate of Registration, a minimum capital of PHP 10 million, FATF Travel Rule compliance, and AMLC registration.
- Payment System Operator or Participant. Governed by RA 11127 (National Payment Systems Act, 2018). BSP registration and ongoing compliance reporting are required.
- Lending or financing company. The SEC, rather than the BSP, issues the Certificate of Authority to Operate. Online lending platforms must also comply with SEC Memorandum Circular No. 19, s. 2019, which mandates disclosure of app names and explicit user consent for data access.
How Do You Register and Incorporate a Fintech Company?
Setting up a compliant fintech company follows a clear sequence of steps. Timelines vary by licence type, but the core process stays consistent.
Step 1: Determine Your Corporate Structure
Most fintech businesses are established as domestic stock corporations. Sort out your ownership structure early (particularly if foreign investment is involved), as this affects your capital requirements and the activities you're permitted to carry out.
Step 2: Reserve Your Company Name
Reserve your proposed company name through the SEC's online registration portal. It needs to be unique and compliant with SEC naming guidelines.
Step 3: Prepare Incorporation Documents
Draft your Articles of Incorporation and By-Laws, setting out your business purpose, capital structure, and governance arrangements.
Step 4: Register with the SEC
Submit your incorporation documents and pay the relevant fees. Once approved, you'll receive your Certificate of Incorporation, formally establishing your company.
Step 5: Obtain Local Government Permits
You'll need a Barangay Clearance and a Mayor's Permit (business permit) from the local government unit where your office is based.
Step 6: Register with the Bureau of Internal Revenue (BIR)
Register for tax purposes, obtain your Tax Identification Number, and secure authority to issue official receipts and invoices.
Step 7: Apply for Your Fintech Licence
With your company incorporated, submit your licence application to the appropriate regulator. Payment and e-money businesses apply to the BSP, while lending and financing companies apply to the SEC for a Certificate of Authority.
Step 8: Register with Statutory Agencies
Enroll with the Social Security System (SSS), PhilHealth, and Pag-IBIG Fund to meet your obligations as an employer.
What compliance obligations apply after registration?
Post-registration compliance is where many fintech operators underestimate the workload. The key recurring obligations include:
- AMLC registration and ongoing reporting, including suspicious transaction reports, for all covered persons, EMIs, banks, lending companies, and VASPs.
- National Privacy Commission (NPC) registration for companies processing personal data of 1,000 or more individuals, along with appointment of a Data Protection Officer and completion of Data Privacy Impact Assessments.
- SEC annual filings: General Information Sheet (GIS) and Audited Financial Statements.
- BSP periodic reporting, which varies by licence type and may be monthly, quarterly, or both.
- BIR tax compliance: monthly, quarterly, and annual filings.
How We Can Help
We support fintech founders and foreign investors in establishing and maintaining a compliant business in the Philippines, with practical guidance and hands-on assistance at every stage:
- Assess your business model and licensing pathway. Your business model, ownership plans, and regulatory requirements are assessed to determine the most suitable corporate structure and licensing pathway from the outset.
- Handle incorporation and licence applications. All necessary documents for SEC incorporation, BSP or SEC licence applications, and statutory registrations are organised, reviewed, and prepared to ensure submissions are accurate and complete.
- Establish your compliance foundation. AML procedures, data privacy policies, and consumer protection processes are established to meet your licence requirements, so your business is compliant from day one.
- Stay current with ongoing obligations. Registrations, renewals, and regulatory filings are kept current, regulatory changes are monitored, and practical guidance is provided as your business grows into new products or markets.
Frequently Asked Questions (FAQs)