What’s the cost of starting a business in the Philippines?
The answer depends, of course, on a number of factors, including the following:
- What type of business you’ll open
- What kind of ownership the business will have (Sole Proprietorship, Partnership, or Corporation)
- Whether you’ll take a franchise or start from scratch
- Where you’ll open your business
- Whether you’ll take a lease, rent, or start at home
- Whether you’ll need to build a cart, stall, or building for this business
- The costs of processing your business documents
Aside from the capital to start the business, you’ll have to take these things into account as well.
Cost of Registering a Small Business with BIR
According to Tycoon PH, these are the fees they paid for in registering a small business with the BIR (Bureau of Internal Revenue):
- BIR Annual Registration Fee: Php 500
- Documentary Stamp: Php 75
- Books of Account: Php 200
- Cost of Printing Official Receipts: Php 3,500
- Total Cost at BIR: Php 4,275
A fee of Php2,000 was also paid to their accountant for handling the registration.
Cost of Registering a Small Business with SEC
This is what Tycoon PH paid the SEC (Security and Exchange Commission) for registering their business:
- Business Name Reservation for 90 days: Php 120
- SEC Express Lane: Php 600
- SEC Registration Fee: Php 2,530
- Stock Transfer Book: Php 500
- BIR Documentary Stamps: Php 1,500
- Notarial Fees: Php 1,500
- Total SEC Expenses: Php 6,750
Cost of Registering a Small Business with DTI
According to the DTI (Department of Trade and Industry), registration costs:
- Php200 for the barangay level/coverage
- Php500 for municipal/city coverage
- Php1,000 for regional coverage
- Php2,000 for national coverage
You should also add a Php30 documentary tax for your DTI documents.
Other Expenses and Fees to Consider
You also have to pay for the following:
- Barangay clearance
- Mayor’s permit
The costs of these vary from place to place but can range from Php50 to Php2,000 or more.
Plus, factor in the costs for:
- Lease or rent
- Building or stall construction
So, in calculating your business costs, you have to take all these into account. Tycoon PH estimates that you’ll need at least Php1 million to start a business in the Philippines, but if you’ll just get a cheap franchise or start small, it wouldn’t really be that costly.