How Much Does It Cost To Start A Business In The Philippines?

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 To Start A Business In The Philippines

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.

Cost To Start A Business In The Philippines

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.

Joy Adalia

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