General

How Much Capital Is Needed to Start a Corporation in the Philippines?

You’ve decided to incorporate in the Philippines, and the first number you need is the one nobody seems to agree on: how much money do you actually need in the bank? The honest answer is—it depends on who owns the company and what it does. Here’s the breakdown.

The short version: the Revised Corporation Code (Republic Act No. 11232) removed the old fixed minimum capital requirement for most corporations. Section 12 of the law states that stock corporations “shall not be required to have a minimum capital stock, except as otherwise specifically provided by special law.” That’s good news if you’re a Filipino entrepreneur starting a domestic business. It’s more complicated if you’re bringing in foreign capital or entering a regulated industry—so let’s go through the scenarios you’re most likely to be in.

Do 100% Filipino-owned corporations have a minimum capital requirement?

Generally, no. For most domestic corporations engaged in ordinary business activities, there’s no fixed peso amount you’re legally required to deposit. In practice, though, the SEC still expects your declared capital to be a reasonable, working figure—not a token amount that can’t credibly run a business—and the traditional 25%/25% rule still guides how incorporators structure their capital: at least 25% of your authorized capital stock should be subscribed, and at least 25% of that subscribed amount should be paid up at incorporation. Many small corporations still register with paid-up capital in the ₱5,000–₱10,000 range as a starting baseline, then increase it as the business grows.

What if my corporation has foreign investors?

This is where the real numbers show up. Under the Foreign Investments Act, a corporation with more than 40% foreign equity that will do business in the domestic market generally needs at least USD 200,000 in paid-up capital. That threshold drops to USD 100,000 if the company either:

  • Employs at least 50 direct Filipino employees, or
  • Uses advanced technology (as determined by the relevant government agency)

If your company is an export enterprise—meaning it sells at least 60% of its output abroad—you’re exempt from the USD 200,000 rule and can generally capitalize the business like a domestic corporation. This exemption is a major reason export-oriented startups and BPO-type businesses often prefer that structure.

Does a One Person Corporation (OPC) need more capital?

No special minimum applies just because you’re registering as an OPC. A Filipino-owned OPC follows the same general rule as any other domestic corporation—no fixed capital floor unless a special law applies to your industry. If a foreign national is the sole stockholder, the same USD 200,000 / USD 100,000 foreign investment thresholds described above still apply.

Are there industries with their own minimum capital rules?

Yes—and this is where founders get caught off guard. Some examples:

Business TypeMinimum Capital
Ordinary domestic corporationNo fixed minimum (practical baseline ~₱5,000–₱10,000)
Foreign-owned, domestic market enterpriseUSD 200,000 (or USD 100,000 with 50+ employees or advanced tech)
Export enterprise (60%+ output exported)No fixed minimum, foreign equity exemption applies
Financing/lending company₱10,000,000
Foreign retail trade enterprise₱25,000,000, plus ₱10,000,000 minimum investment per store
Local recruitment/manpower agency₱500,000
Insurance company₱1,000,000,000

Banks, financing companies, and other institutions regulated by the Bangko Sentral ng Pilipinas (BSP) have their own—much higher—capital rules set by their charters and BSP circulars, so if you’re entering a regulated sector, check with that agency before you finalize your Articles of Incorporation.

Can I register with low capital and increase it later?

Yes. Authorized capital, subscribed capital, and paid-up capital are three different things, and you’re not locked into your starting number forever. Many founders register with a modest paid-up amount and increase their authorized capital stock later through an SEC amendment once the business needs a bigger balance sheet to support financing, bidding requirements, or investor rounds. It’s a fairly routine filing, though it does take time and documentation.

Is registering with very low capital actually a good idea?

Legally, in most cases, yes. Commercially, not always. A corporation with ₱5,000 in paid-up capital signing six-figure contracts, applying for a business loan, or bidding on a government project can run into credibility issues with banks, landlords, and clients who expect to see financial substance behind the entity they’re transacting with. Undercapitalization can also raise piercing-the-corporate-veil risk if the company can’t meet its obligations. The legal minimum and the practical minimum aren’t always the same number.

When to Call in Professionals

Figuring out which capital rule applies to your specific situation—Filipino-owned versus foreign-owned, domestic market versus export enterprise, regulated versus unregulated industry—isn’t always straightforward from the outside, and getting it wrong can mean delays at the SEC or a capital structure that doesn’t serve you six months in. Dayanan Consulting helps founders determine the right capital structure before filing, not after the SEC sends back a query letter. If you’re ready to incorporate and want it done correctly the first time, our incorporation services can walk you through capital structuring, SEC filing, and post-registration compliance.

The Bottom Line

Most 100% Filipino-owned corporations can start with minimal paid-up capital under the Revised Corporation Code. Foreign-owned domestic market enterprises generally need USD 200,000 (or USD 100,000 under certain conditions), while export enterprises and several regulated industries follow their own separate rules. Before you file, confirm which category your business falls into—it’s the single biggest factor in how much capital you’ll actually need.

FAQ

Is there a universal minimum capital to start a corporation in the Philippines?
No. The Revised Corporation Code removed the general minimum for most corporations. Whether a minimum applies to you depends on ownership structure and industry.

How much capital does a foreigner need to start a business in the Philippines?
Generally USD 200,000 for a domestic market enterprise with more than 40% foreign equity, reduced to USD 100,000 if the company employs at least 50 Filipino workers or uses advanced technology.

Can I start a corporation with only ₱5,000?
Legally possible for many 100% Filipino-owned, unregulated businesses, though most founders capitalize higher for credibility with banks, landlords, and clients.

Does an OPC have a special minimum capital rule?
No. A Filipino-owned OPC follows the same general rule as other domestic corporations; a foreign-owned OPC follows the same foreign investment thresholds.

What’s the difference between authorized, subscribed, and paid-up capital?
Authorized capital is the maximum shares your corporation can issue. Subscribed capital is what shareholders commit to buy. Paid-up capital is what’s actually been paid in—the figure regulators and banks look at most closely.

Can I increase my capital after incorporating?
Yes, through an SEC amendment to your Articles of Incorporation once your business needs a larger capital base.

Doing Business in the Philippines: Foreign Ownership, Capital Requirements, and Legal Framework

Philippines Foreign Investment Law

A Practical Guide for Foreign Investors

(RA 7042, as amended by RA 8179 and RA 11647)

Introduction

The Philippines continues to pursue a more liberal and competitive foreign investment regime, aligned with regional ASEAN standards. Legislative reforms over the past decades have reduced entry barriers, clarified ownership rules, and strengthened investor protection while maintaining constitutional safeguards.

The legal framework governing foreign investment is primarily anchored on the Foreign Investments Act of 1991 (Republic Act No. 7042), as amended by Republic Act No. 8179 and Republic Act No. 11647. These amendments significantly modernized the law, particularly with respect to capital requirements, market access, and ease of doing business.

Legal Framework: The Foreign Investments Act (RA 7042)

RA 7042 establishes the State policy to attract, promote, and welcome productive foreign investments that contribute to employment generation, technology transfer, and national economic development.

Key Legislative Amendments

🔹 Republic Act No. 8179 (1996)

RA 8179 introduced early liberalization measures, including:

  • Removal of technology-transfer and Filipino employment requirements as conditions for market entry
  • Greater flexibility for foreign-owned enterprises serving the domestic market
  • Simplification of registration and ownership rules

🔹 Republic Act No. 11647 (2022)

RA 11647 represents a major pro-investment reform. Key changes include:

  • Lower minimum paid-up capital requirements for foreign-owned domestic enterprises
  • Expanded powers of Investment Promotion Agencies (IPAs)
  • Enhanced ease-of-doing-business mechanisms to attract SMEs and professional firms

Foreign Ownership Rules and the Negative List

Foreign ownership is governed by the Foreign Investment Negative List (FINL), which identifies sectors subject to restrictions.

List A – Constitutionally or Statutorily Restricted Activities

Foreign equity limitations apply to sectors such as:

  • Mass media
  • Land ownership
  • Exploitation of natural resources
  • Certain public utilities and professions

Foreign ownership is typically capped at 40%, unless otherwise provided by law.

List B – National Interest and SME Protection

These activities are restricted for reasons of national security, public health, or protection of small and medium enterprises.

All sectors not included in the FINL are generally open to up to 100% foreign ownership.

Minimum Paid-Up Capital Requirements (Updated)

One of the most significant changes introduced by RA 11647 is the substantial reduction in minimum paid-up capital thresholds for foreign-owned domestic market enterprises.

Domestic Market Enterprises

A domestic market enterprise is one that sells goods or services primarily within the Philippines.

Minimum Paid-Up Capital:

Ownership StructureMinimum Paid-Up Capital
50-100% Foreign-Owned (Generally)USD 200,000
With advanced technology or endorsed as startupUSD 100,000
Employing at least 15 Filipino employeesUSD 100,000
Businesses engaged in RetailPHP 25,000,000 (and 10,000,000 per store)

Export Enterprises

An export enterprise is defined as one that exports at least 60% of its output.

Minimum Paid-Up Capital:

  • No minimum paid-up capital requirement* but suggested to have a sufficient paid-up capital that is to be used for pre-operating costs, corporate bank accounts, office equipment and etc.
  • May be 100% foreign-owned, subject to sectoral restrictions

This structure is particularly attractive for BPOs, manufacturing exporters, and offshore service providers.

Enterprises Engaged in FINL-Listed Activities

Enterprises operating in restricted or regulated sectors must comply with:

  • Applicable foreign equity caps
  • Industry-specific capital and licensing requirements
  • Constitutional and special law limitations

Capital requirements vary depending on the sector and regulatory agency involved.

Investment Incentives and Registration

Foreign investors may register with:

  • Board of Investments (BOI)
  • Philippine Economic Zone Authority (PEZA)
  • Other Investment Promotion Agencies (IPAs)

Incentives May Include:

  • Income Tax Holidays (ITH)
  • Special Corporate Income Tax (SCIT)
  • Duty-free importation of capital equipment
  • Full repatriation of profits and capital

RA 11647 strengthened coordination among IPAs to improve investor assistance and processing efficiency.

Registration and Compliance Process

Foreign-owned entities are generally required to:

  1. Determine FINL applicability
  2. Confirm ownership and capital eligibility
  3. Register with the Securities and Exchange Commission (SEC)
  4. Secure secondary licenses and local permits
  5. Comply with ongoing reporting and regulatory requirements

Professional advisory support is recommended to ensure proper structuring and regulatory compliance.

Practical Advisory Notes

  • Early structuring is critical — capital and ownership decisions affect future scalability
  • Overlapping laws apply, including the Public Service Act and Retail Trade Liberalization Act
  • Periodic FINL updates may affect long-term business plans
  • Restructuring post-registration can be costly and time-consuming

Frequently Asked Questions

Can foreign investors own land?
No. Land ownership remains constitutionally restricted. Long-term leases are permitted under applicable laws.

Is 100% foreign ownership now easier?
Yes. RA 11647 significantly lowered capital requirements for domestic enterprises not covered by the FINL.

Does RA 11647 override constitutional limits?
No. Constitutional restrictions remain in force.

Is BOI or PEZA registration mandatory?
Registration is optional but required to avail of incentives.

Where can I see the Foreign Investment Negative List?
https://www.dayananconsulting.com/12th-regular-foreign-investment-negative-list-a-b/

Conclusion

The Foreign Investments Act (RA 7042), as amended by RA 8179 and RA 11647, reflects the Philippines’ continued commitment to liberalizing foreign investment while protecting national interests. With reduced capital barriers, clearer ownership rules, and strengthened institutional support, the Philippines presents compelling opportunities for foreign investors — provided that businesses are properly structured and compliant from the outset.

Foreign investment in the Philippines offers significant opportunities—but proper structuring and compliance are critical from the outset. Ownership limitations, capital requirements, and regulatory approvals can materially affect your investment outcomes if not addressed early.

Dayanan Business Solutions assists foreign investors with:

  • Investment structuring and ownership analysis
  • Capital requirement assessment under RA 7042, as amended
  • SEC registration and regulatory compliance
  • BOI and PEZA registration for incentives
  • Ongoing corporate and compliance advisory

If you are considering establishing or expanding a business in the Philippines, speak with our consultants to evaluate your options and ensure full regulatory compliance.

Contact Dayanan Business Solutions today Contact Us to schedule an initial consultation.

Understanding the Revised Corporation Code (R.A. 11232) and What It Means for Your Business

Book titled “Revised Corporation Code R.A. 11232” beside a gavel and business documents with Manila skyline background, representing corporate law and business compliance in the Philippines.

If you’re planning to register a business in the Philippines, or already running one and thinking about expansion, there’s one law you need to know: Republic Act No. 11232, or the Revised Corporation Code of the Philippines (RCC).

Signed into law in February 2019, the RCC replaced the outdated Corporation Code of 1980, marking one of the biggest overhauls in Philippine corporate law in almost 40 years.

This new law completely transformed how businesses — both local and foreign-owned — can be formed, managed, and sustained in the Philippines. It introduced flexibility, digitalization, stronger governance, and modern compliance standards — all designed to make the country more attractive to entrepreneurs and investors.

In this article, we’ll break down what this means for your business, why it matters, and how you can take advantage of these reforms to build a stronger, future-ready company.

What Is the Revised Corporation Code (R.A. 11232)?

The Revised Corporation Code modernized corporate registration and management in the Philippines.

Before it was implemented, setting up a corporation meant:

  • Finding five incorporators (even if you only had one investor).
  • Submitting piles of paper forms to the SEC.
  • Dealing with long processing times and rigid structures.
  • Renewing your corporation every 50 years.

The RCC changed all that. It was designed to streamline business registration, promote good corporate governance, and make the Philippines a more competitive investment destination in Southeast Asia.

1. You Can Now Register a One Person Corporation (OPC)

One of the most impactful reforms in the RCC is the introduction of the One Person Corporation (OPC) — a game-changer for entrepreneurs.

Under the old law, you needed at least five incorporators to form a corporation. Now, just one person can register and own an entire corporation. That person can be a natural person, a trust, or even a juridical entity (like another corporation).

This new structure gives entrepreneurs and small business owners the best of both worlds:

  • Limited liability protection (like a corporation)
  • Full ownership and control (like a sole proprietorship)

Why this matters

If you’re a freelancer, consultant, or business owner ready to professionalize your operations, converting to an OPC lets you protect your personal assets while presenting your business as a legitimate corporation.

It also boosts your credibility with banks, investors, and clients — which is essential if you plan to scale or attract partnerships.

2. Corporations Can Now Exist Perpetually

Under the old code, corporations were only valid for 50 years, after which they had to be renewed.

The RCC removed this restriction. Now, corporations can exist perpetually, unless a specific term is stated in their Articles of Incorporation.

Why this matters

A perpetual corporate life means:

  • Long-term business stability
  • Easier succession planning
  • No interruptions due to renewal deadlines
  • Better positioning for investors and lenders looking for longevity

This change aligns Philippine corporations with global standards, reducing administrative hurdles and encouraging long-term growth.

3. Faster Incorporation Through Digitalization

The Securities and Exchange Commission (SEC) now uses electronic filing and monitoring systems, allowing faster and more transparent business registration.

What used to take weeks can now be completed in a matter of days — depending on document readiness and company structure.

Why this matters

For foreign investors, multinationals, or startups entering the Philippines, time-to-market is everything. Faster incorporation means you can:

  • Hire employees sooner
  • Open bank accounts faster
  • Start operations immediately
  • Avoid costly delays due to manual processes

Digital filing also improves accountability. With your corporate documents accessible online, you can easily monitor your compliance status and filing deadlines.

4. Stronger Corporate Governance and Transparency

The Revised Corporation Code isn’t just about simplifying registration — it’s also about strengthening accountability and investor protection.

The law introduces clear provisions for:

  • Independent directors in certain corporations.
  • Stronger shareholder rights against abusive practices.
  • Heavier penalties for fraudulent activities and mismanagement.

The RCC also gives the SEC greater authority to investigate irregularities, suspend corporations engaged in illegal acts, and ensure that company records remain accurate and transparent.

Why this matters

Good governance builds trust and credibility, both locally and internationally. Investors and partners are more likely to do business with companies that operate transparently and comply with global standards.

For small to medium enterprises (SMEs), this means a stronger reputation and a smoother path to attracting funding or joint ventures.

5. Simplified Rules for Foreign-Owned Corporations

If you’re a foreign investor or multinational company looking to expand into the Philippines, the RCC made it easier to establish your presence through:

  • Branch offices
  • Representative offices
  • Subsidiaries

Ownership and capital requirements are now more transparent, and compliance processes have been streamlined.

Why this matters

Foreign companies no longer face the same level of red tape that once discouraged investment.
The Philippines now competes more directly with countries like Singapore, Malaysia, and Vietnam as a regional business hub, thanks to its strategic location, English-speaking workforce, and reformed legal framework.

For investors, this means less uncertainty — and faster setup timelines.

6. Easier Corporate Reforms, Mergers, and Amendments

The RCC simplified the process of amending corporate documents, merging, or consolidating companies.

Previously, corporate restructuring was a paperwork-heavy process that discouraged flexibility. Now, corporations can quickly update their structure, expand into new ventures, or merge with other entities with minimal procedural friction.

Why this matters

This flexibility encourages growth and adaptation — vital in today’s fast-changing business environment. Whether you’re pivoting to a new market, bringing in new shareholders, or reorganizing your structure for tax efficiency, you can do so with greater ease and legal clarity.

7. Stricter Penalties and Higher Standards

The Revised Corporation Code introduced tougher enforcement rules, ensuring that corporations maintain ethical and compliant operations.

Non-compliance, fraud, and misuse of corporate authority now carry heavier penalties, including potential imprisonment for serious violations.

Why this matters

This strengthens investor confidence in the Philippine market. A regulated environment protects legitimate businesses and ensures fair competition — which is crucial for attracting both local and international capital.

8. Protection for Minority Shareholders

The RCC improved protection for minority shareholders through mechanisms such as:

  • The right to inspect corporate records
  • The right to receive dividends
  • Legal remedies against oppression or unfair treatment

Why this matters

This makes corporations more transparent and equitable, encouraging broader participation and trust in corporate investments — especially in joint ventures or startups with multiple investors.

9. Encouraging Startup and SME Growth

Perhaps one of the most positive ripple effects of the RCC is its impact on startups and small business owners.

The introduction of the One Person Corporation, streamlined incorporation, and digital compliance has made it far easier for Filipinos and foreign entrepreneurs to launch new ventures legally and efficiently.

For the first time, registering a legitimate company is within reach for solo founders — with full protection and professional credibility.

10. Key Takeaways: Why the RCC Matters for You

If you are:

  • A foreign investor exploring Philippine incorporation
  • A local entrepreneur looking to transition from sole proprietorship
  • A multinational firm planning to expand operations in Manila or Cebu

The Revised Corporation Code works in your favor. It simplifies incorporation, enhances transparency, and gives you the flexibility to scale your business under modern governance standards.

It positions the Philippines as a more open, transparent, and business-friendly environment, making it easier for you to operate, invest, and grow.

How to Leverage the Revised Corporation Code for Your Business

To maximize the benefits of R.A. 11232:

  1. Review your corporate structure.
    Ensure your Articles of Incorporation reflect your current operations and future goals.
  2. Consider switching to an OPC.
    If you’re a solo entrepreneur or consultant, you can register as a One Person Corporation for full control and limited liability.
  3. Check your compliance status.
    Confirm that your filings, reports, and licenses are up to date with the SEC and other government agencies.
  4. Evaluate foreign ownership options.
    Some industries now allow 100% foreign ownership under the RCC and related laws.
  5. Consult with a corporate service provider.
    Experts like Dayanan Business Solutions Inc. can guide you through business registration, incorporation, and compliance — ensuring every step aligns with legal and strategic best practices.

Final Thoughts

The Revised Corporation Code of the Philippines is more than just a policy update — it’s a reflection of the country’s vision to become a regional hub for modern, ethical, and globally competitive businesses.

For entrepreneurs and investors, it means:

  • Faster incorporation
  • Stronger legal protection
  • Greater flexibility
  • Long-term business stability

Whether you’re launching your first company or restructuring an existing one, understanding and leveraging the RCC gives you a strategic edge.

If you want to register a business in the Philippines or review your company’s compliance under the new law, Dayanan Business Solutions Inc. can help you every step of the way — from choosing the right structure to processing your SEC registration and permits efficiently.

Ready to Incorporate or Restructure Your Business?

Contact Dayanan Business Solutions Inc. today.
Let our experts simplify your registration, ensure compliance, and help you focus on what matters most — growing your business in the Philippines.

The Simplified Roadmap: How Foreign Companies Register in the Philippines

How to start your business in the Philippines

Why the Philippines?

The Philippines has become one of Asia’s most promising investment destinations. With its young, English-speaking workforce, competitive costs, and strategic location, it’s no wonder foreign investors are drawn here.

But here’s the truth: navigating Philippine business registration can feel like trying to read a map with missing labels. Between agency requirements, document authentication, and tax registrations, it’s easy to get lost in translation — both figuratively and literally.

This guide is your simplified roadmap to setting up your foreign company in the Philippines with clarity and confidence.

Step 1: Understand Your Options — Choose the Right Registration Type

Before diving into paperwork, decide how your business will legally operate in the country. The structure you choose will determine your obligations, tax treatment, and operational scope.

1. Branch Office

  • A branch office is an extension of your foreign company operating in the Philippines.
  • It can engage in revenue-generating activities but is not considered a separate legal entity from its parent company.
  • The parent company is fully liable for all obligations and debts of the branch.

This setup is ideal if your goal is to directly conduct business in the Philippines under your existing brand and management.

2. Representative Office

  • A representative office can promote the parent company’s products or services but cannot generate income locally.
  • All operating expenses must be funded by the head office.
  • This is perfect for market research, liaison activities, or quality control operations.

If you’re still testing the waters, this structure provides a low-risk way to establish presence and build relationships without committing to full commercial operations.

3. Regular Domestic Corporation

Why Choose a Regular Corporation?

If your goal is to establish a Philippine-registered business entity that can grow locally, attract investors, and operate independently from a parent company, this is your best option. It also offers more flexibility for ownership, capital raising, and long-term expansion.

• Ownership Structure: Composed of 2 to 15 incorporators (shareholders), who may be individuals or corporate entities.
• Liability: Each shareholder’s liability is limited to the amount of their capital investment.
• Capital Requirements: There is no general minimum capital requirement, except for certain regulated industries.
• Management: Governed by a Board of Directors, elected annually by the shareholders.
• Lifespan: Perpetual existence (unless otherwise stated in the Articles of Incorporation).

Key Features:

A regular stock corporation (also called a domestic corporation) is the most common type of business entity in the Philippines. It is a separate legal entity from its owners (called shareholders), meaning the corporation can own property, incur debts, and enter into contracts in its own name.

Step 2: Secure Name Verification and Endorsement

Your company name must be verified and reserved through the Securities and Exchange Commission (SEC). This step ensures that no other entity in the Philippines is using your chosen name.

What You’ll Need:

  • Verified corporate name
  • Proof of parent company’s existence (authenticated by the Philippine Consulate or via Apostille)
  • Board resolution authorizing the Philippine operations

Basic Incorporation Steps:

1. Reserve a Corporate Name – Verify and reserve your company name through the SEC Company Registration System (CRS).
2. Prepare Incorporation Documents – Articles of Incorporation, By-Laws, Treasurer’s Affidavit, Cover Sheet, and other SEC Forms.
3. File with the SEC – Submit all requirements either online or at the SEC office. Once approved, you’ll receive your Certificate of Incorporation.
4. Register with Other Agencies – Obtain your local business permits (Barangay, Mayor’s, and BIR) and register with SSS, PhilHealth, and Pag-IBIG if you’ll employ staff.

Step 3: Submit Registration Documents to the SEC

Once your name is cleared, it’s time to file your application for registration.

Required Documents:

  • SEC application form (Branch or Representative Office)
  • Certified copy of Articles of Incorporation and By-laws
  • Audited financial statements of the parent company
  • Board resolution approving the establishment of a Philippine office
  • Appointment of a local resident agent

Step 4: Obtain Local Business Permits and Tax Registration

Once your SEC registration is approved, you must comply with local government and tax requirements. These steps legitimize your operations and enable you to hire staff or open a local bank account.

Key Permits to Secure:

  • Barangay Clearance (local community permit)
  • Mayor’s/Business Permit (from the city or municipality)
  • BIR (Bureau of Internal Revenue) registration and tax identification
  • Registration with social agencies (SSS, PhilHealth, Pag-IBIG) if hiring employees

Why This Step Matters:

Skipping or delaying local registrations can lead to penalties or suspension of operations. Completing these early helps you establish banking relationships and ensures smooth payroll and tax compliance later on.

Step 5: Open a Corporate Bank Account and Begin Operations

After registration and permits, open a corporate bank account with an accredited Philippine bank. You’ll need your SEC Certificate of Registration, local permits, and authorized signatories’ IDs.

Once set up, you can officially conduct transactions, remit funds from abroad, and start hiring or onboarding local staff. This is where your business journey in the Philippines truly begins.

Timeline: How Long Does It Take?

For most foreign entities, the process typically takes 4 to 8 weeks, depending on document readiness and government processing times.

  • Name verification: 1–3 business days
  • Document authentication and filing: 2–3 weeks
  • SEC approval and post-registration: 2–4 weeks

Preparation is key — delays usually happen when documents aren’t properly authenticated or when signatories are based abroad and hard to coordinate. (Note timeline may vary and the timeline listed above only applies to a regular domestic corporation. For branch office and representative office it will take longer.)

Frequently Asked Questions

1. Can a foreign company own 100% of a Philippine business?

Yes, in most industries. However, certain sectors like retail, media, and land ownership have restrictions under the Foreign Investments Negative List.

2. What’s the minimum capital requirement?

  • Branch Office: Typically USD 200,000, but can be lower if exporting at least 60% of products/services.
  • Representative Office: USD 30,000, remitted to fund operations.
  • Regular Domestic Corporation: no minimum capital requirement depending on the industry.

3. Do I need a Filipino partner?

Not necessarily. Many foreign companies/foreigners can operate 100% foreign-owned businesses without a local equity partner. (With some restrictions or limitations)

4. How can Dayanan Consulting help?

Dayanan provides end-to-end assistance — from incorporation, SEC filings, to post-registration compliance, annual company maintenance, bookkeeping, payroll and HR support — ensuring your business is set up legally, efficiently, and without guesswork.

Conclusion: Start Strong with Expert Guidance

Registering a foreign company in the Philippines may seem daunting, but with the right roadmap and experienced partners, the process becomes straightforward and predictable.

At Dayanan Consulting, we’ve guided hundreds of foreign companies — from tech startups to multinational enterprises — through every stage of Philippine business registration. We know the challenges, the shortcuts, and the best practices that make your setup faster and compliant.

Ready to establish your presence in the Philippines?
Book a consultation today and start your journey with Dayanan.
Contact us

Registration of Cosmetic Products in the Philippines Made Easy

registration of cosmetic products in the philippines

The Philippines is a growing market for cosmetics, with analytics company GlobalData forecasting the industry to be worth PhP 228.8 billion (USD 4.2 billion) by 2023. Contributing to this potential for an upswing is the country’s increasing population as well as lower unemployment rates. The archipelagic nation’s citizens appreciate beauty and social interactions, driving the demand for cosmetic products in the Philippines.

Clearly, there is an opportunity to be had here for enterprising individuals and corporations. After all, cosmetics is an umbrella term. Products such as perfumes, hair dyes, lipsticks, soaps, lotions, and other skincare items are all in high demand and will continue to be so in the short and long term.

If you are interested in importing, selling, or distributing cosmetic products in the Philippines, you need to first secure necessary permits from the Food and Drug Administration (FDA). Going through the registration process will show potential customers that you care about their health and safety.  

In this article, we give you the lowdown on how to register cosmetic products in the country.

Regulation of Cosmetic Products in the Philippines

Main Cosmetic Regulations in the Philippines

The Philippine regulatory environment for cosmetics is primarily based on the ASEAN Cosmetic Directive (ACD), an initiative to promote trade among members of the Association of Southeast Asian Nations (ASEAN)  by harmonizing technical industry requirements while maintaining safety and quality standards. 

According to this directive, cosmetic products are “any substance or preparation intended to be placed in contact with the external parts of the human body… or with the teeth and the mucous membranes of the oral cavity with a view exclusively or mainly for cleaning them, perfuming them, or changing their appearance, and/or correcting body odours and/or protecting or keeping them in good condition.” 

Several other regulations have also been released by the FDA which are related to ASEAN’s streamlining initiative. Among them is Administrative Order (AO) 2016-0003 (“Guidelines on Unified Licensing Requirements and Procedures of the Food and Drug Administration”), which aims to improve the approval processes for cosmetic products and to strengthen the institution’s post-market surveillance activities by unifying and harmonizing the licensing requirements of the FDA. 

Regulating Bodies in the Philippines

The Center for Cosmetics Regulation and Research (CCRR) is the main arm of the FDA that is responsible for cosmetic product regulation. This department further branches into two divisions — (1) the Licensing and Registration Division and (2) the Product Research and Standard Development Division.

Steps in Registering Cosmetic Products in the Philippines

License to Operate (LTO)

A company is required to obtain an LTO before it can legally import, distribute, sell wholesale, and/or manufacture cosmetics.

Here at Dayanan Consulting, we help our clients by facilitating their application process with the FDA from start to finish, from LTO to labeling. They just need to provide us the necessary information and we help prepare the documents needed.

But if you choose to try doing it by yourself, here are the requirements to secure one:

  • Notarized Petition form from the owner, incorporator, or authorized representative
  • Joint Affidavit of Undertaking signed by the owner and an authorized individual (an allied health science professional) stating that they understand the FDA’s regulation for LTO; note that the authorized individual must also present their professional license or board certification
  • Proof of your Business’ Registration
  • Site Master File (this is required from manufacturers of drugs, devices, and cosmetics)
  • Proof of occupancy or business address
  • Floor plan and vicinity map of the business location
  • Risk management plan
  • Application fee

After preparing these requirements, you may now proceed to file them with the FDA. Note that if you are just renewing your LTO, submission of the first, second, and last items would suffice. You will then have to wait for the FDA evaluation results.

For manufacturers, pre-opening inspection is required as part of FDA’s post-marketing surveillance activities. The FDA may inspect all covered establishments at any time so you need to be prepared and compliant with all standards.

Notification

Before the product can be released to the market, the FDA must be notified first using the procedures outlined in the  Cosmetic E-Notification v.2.0 User Manual for Applicants. 

You need to provide the following information in your Cosmetic Product Notification:

  • Brand Name / Product Name / Product Variants – The complete name of the product should be given in the following sequence: brand name, line name (if applicable), product name, and the shade name/number if a single shade is notified (e.g. BRAND ABC PRODUCT XYZ EYSHADOW SHADE 1). If there are different shades, the shade name/number for each shade shall be declared.
  • Product Types – the category of the cosmetic product for which you are applying for notification.
  • Particulars of the Product – The validity of the notification may either be 1, 2, or 3 years at the option of the applicant. 
  • Intended Use – This refers to the function or use of the product and not the directions for use e.g. to moisturize the face, hand, etc.
  • Product Presentations – select whether you are applying for (1) a single product, (2) a range of variants similar in composition for the same use but differs in colors, flavors, etc., (3) palette(s) in a range of one product type, or (4) combination products in a single kit. 
  • Local Company Responsible for Placing the Cosmetic Product in the Market – Indicate the local company responsible for placing the cosmetic products in the market. This company must also have a valid LTO number.  If the company responsible for placing the cosmetic product in the market is a distributor, then the applicant must also declare the details of the direct supplier or manufacturer of the cosmetic product, namely Country of Manufacture, Address, and others. 
  • Establishment Information – It refers to the particulars of the manufacturer and/or supplier of the notified cosmetic product.
  • Person Representing the Local Company – It refers to the company representative who may be contacted by the FDA in case there are questions on the cosmetic product or if additional documents are needed to substantiate the application. 
  • Product Ingredient List – All the ingredients in the product must be specified by using the nomenclature from the latest edition of standard references (International Cosmetic Ingredient Dictionary, British Pharmacopoeia, United States Pharmacopoeia, Chemical Abstract Services). Botanicals and extract of botanicals should be identified by its genus and species. The genus may be abbreviated. The functions and percentages of ingredients must be declared if they are substances with restrictions for use as specified in the annexes of the ASEAN Cosmetic Directive.

To apply, follow the steps below:

  1. Obtain a CCRR User Account by requesting one from info@fda.gov.ph. You must provide the following information to proceed:
    1. Email address or company email address
    2. Name
    3. Position
    4. Contact No.
    5. Company Name
    6. Company Address
    7. Product Classification: Cosmetics
  2. Log in at the FDA e-portal (https://ww2.fda.gov.ph).
  3. Click on “New Case” and accomplish the ASEAN Notification Form.
  4. Download the “Order of Payment” and assign this task to the FDA Cashier.
  5. Pay the fee either through any Landbank branch or by online Bancnet payment methods.
  6. Wait for the Result of Application.
  7. Download and print the notice of acknowledgment once your application is approved.

Organizations that have submitted correct application documents will then be issued a Cosmetic Product Notification certificate which is valid for 1-3 years. Those with insufficient documentation will be given a Notice of Deficiencies wherein clarification or further explanation of details will be asked. Finally, anyone who declared misleading information or failed to meet FDA standards will merit a Letter of Disapproval.

Acknowledged cosmetic notifications may be revalidated for a new validity date, where the new validity date will be based on the date of submission of the revalidation application.

Note that the same process of application for cosmetic e-notification applies for revalidation. In the e-portal, the previously acknowledged case must be selected to continue with the task for Revalidation Application. There must be no modifications from the information provided during the previous application to avail of revalidation. Hence, any changes to the information will constitute a new notification application.

In the event that the notification is desired to be cancelled, the applicant may choose to cancel the application. This option is available in the Revalidation Application Task.

Manufacturing Requirements: GMP, Ingredients, and Labelling

For manufacturers, your manufacturing processes and practices — personnel, premises, equipment, sanitation and hygiene, etc. — must be compliant with the Good Manufacturing Practices (GMP) set by the ASEAN guidelines. 

Note that a Certificate of GMP Compliance will only be issued upon the demonstration of satisfactory compliance and will be effective up to the validity of your current LTO. Thereafter, it shall be issued every time your LTO is renewed.

Aside from the procedures and processes, you also need to ensure that ingredients used in your cosmetic products adhere to ASEAN cosmetic regulations. The annexes of the ASEAN Cosmetic Directive provides prohibitions and regulations of cosmetic product ingredients as listed below:

Table 1. Annexes of ASEAN Cosmetics Directive that Provide the Regulations and Ingredient Prohibitions for Cosmetic Products in the Philippines

ASEAN Cosmetics DirectiveRegulations and Prohibitions
Annex IISubstances that are prohibited to form part of the composition of cosmetics products
Annex IIISubstances that are prohibited to be contained in cosmetic products except for the ones subject to restrictions and conditions laid down
Annex IVColoring agents that can be used in cosmetic products
Annex VIPreservatives that can be contained in cosmetic products

When it comes to labelling of cosmetic products in the Philippines, the following must be seen on your product’s packaging:

  • Weight or volume of the product content
  • Brand, product name, and its function
  • Batch number
  • Manufacturing or expiration date of the product in terms of (month/year)
  • Country where the cosmetic product is manufactured
  • Instructions on how the product is used
  • Special precautions (if any)
  • List of all the ingredients in the product
  • Name and address of the company or individual who placed the product in the market

For decorative cosmetic products that are marketed in multiple color shades, all coloring agents may be listed as long as the description includes the words, “may contain” or “+/”. 

Penalties Associated with Cosmetic Products in the Philippines

Misbranding of cosmetic products, whether deliberately or accidentally, will net violators jail time of at least one (1) year or a maximum of ten (10) years. Fines can also be imposed which range from Php 15,000 to Php 500,000. Some may even have to deal with both depending on a court’s decisions.

On the other hand, for violators who are manufacturers, importers, or distributors of any cosmetic product, the minimum jail time would be five years while the amount of the fine will range from Php 500,000 to Php 5 million.

SEC MC No. 28 – 2020

Securities and Exchange Commission (SEC/Commission) issues new requirement for corporations, partnerships, associations, and individuals to create and/or designate e-mail account address and cellphone number for transaction of business with the commission under SEC Memorandum Circular (MC) No. 28-2020.

Every corporation, association, partnership, and person under the jurisdiction and supervision of the Commission shall submit a valid official electronic mail (“e-mail”) address and a valid official cellular phone number within sixty (60) days from the effectivity of these rules ie., October 31, 2020. For future applications and those applications which are still pending primary registration with the Company Registration and Monitoring Department (CRMD), such information should be either indicated during the filling up of the registration forms or submitted within thirty (30) days from the issuance of the certificate of registration, license or authority.

Purpose of Email Addresses

The purpose of both the official and alternate e-mail addresses shall be where transactions, applications, letters, requests, papers and pleadings under the jurisdiction of, or for consideration by, the Commission may be processed, submitted and/or filed online. The Commission may likewise send notices, letter-replies, orders, decisions and/or other documents through the said e-mail addresses, and the corporations, associations, partnerships and individuals are deemed to have received those notices, letter-replies, orders, decisions and/or other documents on the date so sent by the Commission. Service of notice through this process shall be considered compliance with the notice requirement of administrative due process.

Purpose of Cellphone Numbers

The official cellphone number to be provided by all entities registered with the SEC in an additional security measure to ensure that the person accessing the e-mails sent by the Commission is the authorized person of the corporation or partnership to receive and retrieve the same. For every transmittal, Multi-Factor Authentication (MFA) utilizing mechanisms such as One-Time Personal Identification Number (OTP) scheme or Two-Step Verification by a Software-Based Authenticator will be performed by SEC to said cell phone number which the authorized person will have to input before the e-mail message can be retrieved.

Person in Control

The e-mail addresses and cellular phone numbers shall be under the control of the corporate secretary, the person charged with the administration and management of the corporation sole, the resident agent of foreign corporation, the managing partner, the individual, or the duly authorized representative. Provided, that the corporation, association, partnership or individual shall also submit proof of the authorized representative’s authority (i.e., special power of attorney or secretary’s certificate) to control the email addresses and cellular phone numbers, and to sign and file the Submission as (described in paragraph 6), Authorization and Certification of Authorization (described in paragraph 9), and/or Certification (described in paragraph 11) of the Memorandum Circular.

The Submission of the Email Addresses and Cellular Phone Numbers shall include the following:

a. Complete name of the corporation, association, partnership, or person;
b. The SEC registration number or identification number;
c. Official electronic mail address;
d. Official cellular phone number;
e. Alternate electronic mail address;
f. Alternate cellular phone number;
g. For corporations, the complete name and signature of the corporate secretary, the person charged with the administration and management of corporation sole, or the duly authorized representative;
h. For partnerships, the complete name and signature of the managing-partner or the duly authorized representative; and
i. For natural persons, his/her signature or his/her duly authorized representative’s signature.

Inclusion in General Information Sheet (GIS) or Notification Update Form (NUF)

Starting February 23, 2021 onwards the, the email addresses and cellular phone numbers shall be included in the General Information Sheet (GIS) or Notification Update Form (NUF) regularly filed with the Commission. If a corporation fails to include the email addresses and cellular phone numbers in the GIS or NUF regularly files with the Commission, such GIS or NUF shall be considered incomplete.

Electronic Commerce Act

The use of the Securities and Exchange Commission of email as a means of valid communication are based on the clauses below:

Whereas, Section 6 of Republic Act No. 8792, otherwise known as the Electronic Commerce Act (“ERA”), provides that information shall not be denied validity or enforceability solely on the ground that it is in the form of an electronic data message purporting to give rise to such legal effect, or that is it merely incorporated by reference in that electronic data message.

Whereas, Section 7 of ERA provides that electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing.

Download the full memorandum circular: https://www.sec.gov.ph/mc-2020/mc-no-28-s-2020/

FDA-Approved Food Supplements in the Philippines: A Quick Guide (Part 1)

As the threat of the COVID-19 pandemic continues to loom, the adage “health is wealth” has never been more true. People are starting to invest more seriously in the physical well-being of their families and loved ones. This is where FDA-approved food supplements in the Philippines come in.

With experts saying that a vaccine is at least a year away, maybe even more, prevention is taking center stage. Supplements help individuals increase their daily intake of recommended energy and nutrient requirements. This makes people less vulnerable to common illnesses as well as the dreaded COVID-19.

If you are thinking of selling, importing, and distributing food supplements in the Philippines, you must first obtain the approval of the Food and Drug Administration (FDA). This article provides you the basics of FDA Philippines food standards, including items such as the difference between drug-based and processed food categories for supplements, prohibited and allowed ingredients, making therapeutic claims, and what to include in a food label.

In the upcoming Part 2 article, we will discuss the detailed requirements for FDA approval and the corresponding fees and charges.

What are Food or Dietary Supplements?

As defined by Administrative Order No. 2014-0029, these are processed food products that help supplement the diet. A food supplement may contain dietary ingredients such as vitamins, minerals, herbs, amino acids, and other dietary substances made from plant, animal, natural, or artificial matter. It may take various forms, including those of liquids, capsules, pills, tablets, powders, and gels. It is not marketed as a conventional food or as replacement for drugs and medicines.

Does my dietary supplement fall under the Food or Drug category?

Based on FDA Philippines Officer Order No. 22 s. 1991, your vitamin or mineral product will be classified as drug-based if it meets the following conditions:

1) Has clinical therapeutic claim/s with regards to a specific vitamin deficiency or disease;

2) Has a concentration per dosage form of greater than 150 percent of the Philippine Dietary Reference Index (PDRI) for water-soluble vitamins and/or greater than 105 percent of the PDRI for fat-soluble vitamins;

3) Takes the form of a pharmaceutical dosage or injectable; and

4) Has additional pharmacologically-active ingredients present

On the other hand, your product will be categorized as a food supplement (more specifically a “processed food”) if:

1) Its indication is that of “Dietary or Health Supplement;

2) Its concentration per dosage form is less than 105% of the PDRI for fat- soluble vitamins and/or less than 150 percent for water-soluble vitamins;

3) It may be available in both non-pharmaceutical and pharmaceutical dosage form except parenterals;

4) It is available as either a purified or a natural product; and

5) It contains no additional pharmacologically-active ingredients.

Under FDA Philippines Administrative Order No. 2014-0029 (Annex A), food products are further classified according to microbiological risk: low, medium, and high. If your dietary supplement contains herbs and botanicals and/or products with other nutritional substances, it will be categorized as a high-risk food; if it has vitamins and minerals and/or amino acids, it will be considered as a medium-risk food. The authorization process and the inspection priorities of the FDA would depend on these subcategories.

What ingredients can be included in my health supplement?

FDA-approved food supplements in the Philippines must meet the regulatory body’s key standards. Among these is the ASEAN Negative List, which details substances that should not be used in health supplements. The prohibited items include:

1) Deadly Nightshade

2) Marijuana

3) Hemlock

4) Chaparral

5) Opium / Poppy

For its part, FDA Philippines Circular 2006-016 enumerates all authorized food additives. These are some examples of what we call additives today:

1) Artificial sweeteners

2) Emulsifiers

3) Food Colors

4) Flavor Enhancers

5) Preservatives

Any food additive and functional classes that will be adopted by the Codex Alimentarius Commission (CAC) shall be automatically included as an addendum to the circular’s Appendix for Food Additives.

What kind of claims can my food supplement make?

Food product claims are regulated under FDA Philippines Circular 2007-002. This circular adopts the CAC Guidelines for Use of Nutrition and Health Claims as its standard for evaluating nutrition and health claims made in advertisements and food labels. It must be noted that products that make unproven claims could be banned from being sold in the Philippine market.

Other relevant regulations include:

1) Administrative order 2014-0029: prohibits the use of curative and therapeutic claims under Chapter VI, Part C of the Guidelines in the Registration of Processed Food Products.

2) Administrative Order 2014-0030: precludes the declaration of misleading and prohibited claims, specifically those in the labels of prepacked foods, under Section VII.

What should be on the label of my dietary supplement?

FDA Philippines Administrative Order No. 88-B s. 1984, as amended by Administrative Order 2014-0030, regulates the labeling of prepacked food, particularly food supplements. Its main provisions are:

1) The following details must be included on the label:

  • Product name
  • Brand name and/or trademark
  • Full ingredient list
  • Net content

Note: Either a per volume or per quantity indication is allowed. For multi-packs, the total quantity as well as the number of individual portions must be indicated.

  • Name and address of the manufacturer and/or repacker, packer, importer, trader, and distributor

Note: For imported products, the country of origin as well as the complete name and address of the importer should be indicated.

  • Lot identification
  • Storage conditions
  • Expiration date
  • Food allergen information (to be mentioned below the ingredient list)

Note: The following allergens and its derivative products must be clearly indicated on the label:

a) Cereals containing gluten
b) Crustaceans
c) Eggs
d) Fish
e) Milk, including lactose
f) Peanuts
g) Soybean
h) Sulfites
i) Tree nut and other nuts
  • Instructions for use
  • Nutrition information

Notes:

Full nutritional declaration is required, especially if a product claims to contain certain nutrients. Only foods for special purposes, medical or otherwise, are exempted. The quantities must be displayed in a tabular form and declared according to the portion size or a specific weight or volume. Vitamins and minerals are to be expressed in mg or µg. The exceptions are Vitamin A, D, and E, which are to be expressed in IU (International Units).

The indicated recommended daily allowance must conform to the Philippine Recommended Energy and Nutrient Intakes (RENI) for male adults aged 19 to 29. Foods for specific groups may use values applicable to such age groups, which will have to be indicated in the labeling. The actual nutrient content of vitamins and minerals should at no point be lower than 80 percent of what is declared on the label. There is no upper limit of overages for micro-nutrients and fiber though.

2) Additives must be properly labeled according to CAC standards.

3) All mandatory information on labels must be in English and/or Filipino. For imported products, the use of other languages is allowed but they should also carry a corresponding English translation.

4) For FDA-approved food supplements in the Philippines, the following statement in Filipino must be included in every advertisement or promotional effort as per Administrative Order No 2010-008:

“IMPORTANT REMINDER: THIS PRODUCT IS NOT A DRUG AND SHOULD NOT BE USED FOR ANY TYPE OF ILLNESS” (non-official translation)

This message should be printed in a size of at least one-third of the size of the largest letter or logo. It must be prominently printed using capital and bold letters using either Arial or Tahoma font.

5) Qualification for other standards such as for halal (Muslim) and kosher (Jewish) may be included in the label but would require proper substantiation. The assigned registration number may also be included on the label.

Need help with registering your food or dietary supplement?

If we handle it, you are guaranteed to have your FDA-approved food supplements in the Philippines. Let us help you. Contact us here and stay tuned for our next article on the registration process, requirements, and fees.

Fees and Requirements for FDA-Approved Food Supplements in the Philippines (Part 2)

FDA CPR Certificate of Product Registration Requirements and Application Process in the Philippines

Certificate of Product Registration FDA Phils
Certificate of Product Registration FDA Phils.

Before you can start selling food items, cosmetics, or drugs in the Philippines, you need to secure first a Certificate of Product Registration (CPR) from the Food and Drug Administration (FDA).

Obtaining a CPR for your product involves knowing if it needs one, having the proper documents and requirements, and applying for it using the FDA’s system. Take note that each product being registered will have its own CPR. This means that each variant, flavor, and dosage will have its own certificate—basically, each item must be registered individually. There is no bulk processing option for FDA CPR application on their website.

Need to know more about how to apply for a Certificate of Product Registration from the FDA? Keep reading.

Click the links below to go directly to that part of this article:

  1. Products with Required Certificate of Product Registration (FDA CPR)
  2. Requirements for FDA CPR
  3. How to Get Certificate of Product Registration from FDA
  4. Automatic CPR Renewal
  5. Penalty for Products with no CPR

Products with Required Certificate of Product Registration (FDA CPR)

Which products need a CPR? The following items do:

1) Food Products (canned goods, bottled beverages, infant formulae, etc.)

2) Medicines, Pharmaceuticals, and Over-the-Counter Drugs

3) Medical Devices

4) Food Supplements (vitamins, minerals, energy boosters, etc.)

5) Toys

6) Veterinary Products (pet medications, vitamins, supplements, etc.)

7) Hazardous Household Products and Urban Pesticides (cleaning supplies, disinfectant sprays, etc.)

Do cosmetics need a Certificate of Product Registration?

Cosmetic products do not have a CPR, and instead are required to have a product notification. While the FDA needs to be informed regarding such cosmetics, the procedure outlined here is for obtaining a CPR only.

Requirements for FDA Certificate of Product Registration

If your product is listed above, you are required to process a CPR for your product. The following are the requirements for doing so:

1) A valid LTO or License to Operate which can be obtained from the FDA

2) A clear, scanned, and colored copy of loose labels of all packaging sizes for the products (or equivalent, as defined by FDA), as well as pictures of the product from all angles and in different packaging sizes. This allows easy recognition of a product as the same one being registered.

  • For food supplements, include blister packs, Alu-Alu packs, and secondary packaging (i.e. paper box or cardboard box).

3) Other requirements for traders, wholesalers, and distributors of locally manufactured food products / for importers and distributors

4) Documents to support product claims, such as:

  • Technical/nutrition health studies or reports
  • Market research studies
  • Certificate of analysis, quantitative analysis, and computations
  • Scientific reports or studies published in peer-reviewed scientific journals
  • Supporting certificates to allow the use of “Sangkap Pinoy”, Halal, Organic, Kosher, and other claims in compliance with current labeling requirements

5) Certificate of Analysis stating essential details to determine product compliance to food standards and regulations for the following:

  • Medium to high-risk products with standards of identity such as food for infants and young children, foods intended for special medical purposes, bottled water, etc) the certificate of analysis must be uploaded. The list of low, medium, and high risks can be found here on the FDA website.
  • Fortified food products covered by R.A. 8176 (iodized salt) and R.A. 8976 (cooking oil, flour, and refined sugar)

6) For food supplements, additional requirements include:

  • A stability study of the actual food supplement
  • Safety data, such as toxicity tests, must be attached to address safety concerns regarding the product.

7) Actual representative product sample of food supplement (for initial application only, and is not needed during CPR renewal).

Note: This is a list of general requirements; additional requirements and procedures may be required by the FDA depending on the product being registered. Confused? You can ask us about it.

Once you have these requirements, you can opt to register these products online using the FDA e-registration system, which can be found here.

How to Get Certificate of Product Registration from FDA

The following is the basic CPR e-registration procedure (as per FDA Circular 2016-014):

1) Secure your FDA E-registration log-in details.

2) Log in to the FDA website e-portal.

3) For first-time product applications, click on “New Case.”

4) Type the details of needed information of product, such as brand name, product name, food category, list of ingredients, product specifications, and other pertinent information.

5) Upload the required documents. The documents needed vary per product and if the product is for export or not. Please check the FDA website for more details.

Note: Maximum 2MB per attachment in PDF or PNG format, and 25 MB max for all attachments per application

6) Print Order of Payment and pay corresponding fees either in person at the FDA Main Office located in Alabang, through the Bancnet online payment gateway option as per FDA Advisory 2015-021, or whatever FDSA recommends on their site.

7) You can track the application progress through the process map indicated on the FDA website.

Automatic CPR Renewal

To make CPR renewal automatic, the following conditions must be met:

1) The renewal application must be filed before the expiration date of the CPR;

2) The automatic renewal fee must be paid prior to the filing of application; and

3) There should be no condition stated at the back of the issued Certificate of Product Registration.

In case of a condition, compliance with the condition must be met and proven by including a scanned copy of the acknowledgment letter from the FDA indicating that the condition has been met.

Penalty for Products with no CPR

What if you release the product to the market without the proper certification? Not only is this illegal, but once FDA is notified, they will issue a cease and desist order. They will take your products off the market AND require you to pay fines AND process CPRs for your products that were taken off the shelves.

Going against the law can destroy the name of your business as well. The FDA issues public health warnings against products without CPRs, and this means bad publicity for your brand.

All in all, the hassles and penalties brought about by not doing things properly is just not worth the risk.

Does the application for an FDA CPR sound too tedious?

If applying for a CPR sounds like a hassle to do it yourself, then let us help! Our team of experts can help you with the whole FDA process, not just for product registration. If you have any inquiries, you may contact us here.

The Complete FAQ Guide on How to Renew Your Business Permit in the Philippines for 2020

Having a business registered in the Philippines requires you to renew its business permits annually.

It doesn’t matter if the company is a Single Proprietorship, a One Person Corporation, a Partnership, a Corporation, a Branch Office, or a Regional Headquarter (ROHQ). All business establishments, per Philippine law, must renew their permits or face possible closure of their operations as well as a loss of face to their clients. 

To help you avoid long lines and heavy monetary penalties, we give you our complete FAQ guide on how to renew your business permit in the Philippines for 2020. 

Frequently Asked Questions (FAQs):

  1. What permits do I need to renew? When is the deadline for each?
  1.  What are the penalties for non-renewal or late renewal of business permits? 
  1. What are the needed requirements and fees for business permit renewal with each government office?
  1. What are the steps for renewing business permits? How long will the process take? 
  1. What other tips should I know about business permit renewal?
 

What permits do I need to renew? When is the deadline for each? 

Business permit renewal season involves coordinating with three different government entities: the barangay, the city or municipality, and the Bureau of Internal Revenue (BIR). 

1. Barangay Permit or Clearance (Deadline: January 20)

A barangay permit certifies that a business establishment is compliant with the requirements set by its local government unit (LGU) of operation. It is also a requirement when securing the Mayor’s Permit. 

2. Mayor’s Permit or Business License (Deadline: January 20)

Each city or municipality has its own rules to comply with. The Mayor’s Permit certifies that a company is compliant with the ordinances of the city or municipal it operates in. 

3. BIR Renewal of Registration (Deadline: January 31)

The BIR issues a Certificate of Registration (COR) to a company when it is first established. To ensure its validity from year to year, a business establishment must pay a renewal fee of PhP 500.00 every January 31.

 

What are the penalties for non-renewal or late renewal of business permits? 

City or Municipality

If filing is not accomplished by January 20 of each year, the LGU concerned will impose a 25 percent surcharge on top of the unpaid taxes, charges, and fees assessed. Also, a negligent company will incur a 2 percent monthly interest on all unsettled fees, including the surcharge, until everything is paid off.

Extremely delinquent businesses, on the other hand, run the risk of closure and/or seizure of its properties and assets.

All these penalties are imposed by the Local Government Code of 1991.

BIR

A company that did not comply to the January 31 deadline will be fined an amount ranging from PhP 5,000.00 to PhP 20,000.00. Its officers also face the risk of imprisonment, with the term ranging from six months to a maximum of two years. 

 

What requirements do you need for business permit renewal with each government office?

Barangay

1. 2019 Barangay Permit (original and photocopy)

2. Official Receipt from last year (original and photocopy)

3. Accomplished application form (2 copies)

4. Renewal fee (varies per barangay)

City / Municipality

1. 2020 Barangay Permit (to be availed first for the current year)

2. 2019 Mayor’s Permit (original copy)

3. 2019 Official Receipt (original copy)

4. 2019 Audited Financial Statement

5. Lease Contract (if changing address)

6. Community Tax Certificate (CTC) or Cedula (to be secured first from City or Municipal Hall)

7. Comprehensive General Liability Policy (CGLP) insurance for 2020

8. Official receipt of CGLP availed

9. Renewal fee (varies per city or municipality)

Depending on the LGU concerned, you may also be asked to provide the following documents:

1. Fire and Safety Inspection Certificate (original copy) 

2. Sanitary Permit (original copy)

BIR

1. BIR Payment Form 0605 (Click this link to download from the BIR website)

2. PhP 500.00 annual business registration fee

 

What are the steps for renewing business permits? How long will the process take? 

Barangay

Estimated Time Needed: 1 day

1. Visit the barangay hall in whose district your company operates in. Secure a renewal application form.

2. After filling out the form, submit it along with the original copies of your 2019 Barangay Permit and Official Receipt.

3. The barangay’s permit division will then assess your renewal application and documentary requirements. If everything is in order, you may then pay the necessary renewal fee.

4. You will be given the Official Receipt for your Barangay Permit. You may then claim your new Barangay Permit on the date indicated in the Official Receipt.

City / Municipality

Estimated Time Needed: 1 to 2 weeks

1. Secure a renewal application form from the Business Permits and Licensing Office (BPLO) of the LGU that your company operates in.

2. Fill out the form then submit along with the documentary requirements for evaluation.

3. Based on the submitted documents, the BPLO will issue an assessment notice containing the amount of local business tax, real property tax, and other fees that your company needs to pay for 2020. You can choose to pay the entire annual fee in full or in quarterly installments. You may also contest the amount and request a lower assessment. 

4. Bring the assessment notice and pay the required fees at the City Treasurer’s Office. They will provide you the Official Receipt to be presented when you claim the Mayor’s Permit certificate.

5. If your documents are in order, pay the Mayor’s Permit renewal fee at the City Treasurer’s Office. You will be given a receiving copy of your documents.

6. It will take some time for the certificate to be released. In the meantime, the Official Receipt will serve as proof that you renewed your Mayor’s Permit on time if asked. 

7. You may then claim your new Business License from the City Treasurer’s Office on the date indicated in the Official Receipt.

BIR

Estimated Time Needed: 1 day

1. Fill up BIR Payment Form 0605 with details of your business establishment.

2. Bring the BIR Payment Form 0605 to your RDO’s Authorized Agent Bank (AAB) and pay the PhP 500.00 annual business registration fee there.

 

What other tips should I know about business permit renewal?

1. Don’t procrastinate. Preparing the documents required by your LGU at the last minute will land you in long waiting lines and possible payment of penalties. Use the whole month of December if necessary. Remember: the deadline for the whole process of business permit renewal is January 20.

2. Be OC (obsessive-compulsive). Paying attention to small details can save you a lot of time. Organize your documents as soon as you receive or print them. Triple-check what is written in your application form and its attachments. Bring enough cash before you head to the battle lines. 

3. Patience is a virtue. No matter how early you start preparing, you will probably still face lines at your barangay hall, city hall, and BIR RDO. Make sure you’re ready to play the waiting game. Bring a fan, towel, bottled water, and even a good book if you’re so inclined.

4. Copies can save you. You never know how many copies of a particular document will be asked of you at the counter. Bring extra copies of your required documents so you don’t have to run out to the nearest photocopier (and lose your spot in the lines).

5. Avoid fixers. Do everything aboveboard. Don’t listen to individuals who promise shortcuts and discounts in the business permit renewal process. Their quick fixes may also quickly land you in hot water for tax evasion.

 

The best partner for renewing your business permit is someone who tells you the fees and steps needed exactly as it is. At Dayanan Business Solutions Inc., we do exactly just that. Having helped over a hundred companies through the process, we know exactly how to save you time and effort. This allows you to focus on your core business functions better.

Let us take care of filling out forms and going to government offices for you. Contact us today!

The Apostille: Simpler Authentication for Documents To Be Used Abroad

HCCH

Bringing documents from one state to another and having their validity recognized has always been difficult. A foreign corporation that wants to establish a Philippine subsidiary has to go through several steps just to authenticate its articles of incorporation from abroad. But with the Philippines recently joining the Apostille Convention, things are bound to get easier.

The Convention

The Apostille Convention (formally known as the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents) provides for the use of a security certificate called the “Apostille.” This simplifies the authentication process for public documents used across signatory countries. The Philippines officially became a member last September 12, 2018.

Drafted by the Hague Conference on Private International Law (HCCH), the international treaty will take effect between the Philippines and other states party to it on May 14, 2019. This is pending changes to be made by the Supreme Court to the Rules of Court with regards to foreign public documents. The Office of Consular Affairs under the Department of Foreign Affairs (DFA) will be responsible for implementing the treaty.

The Apostille

Previously, a public document must be authenticated both by the foreign ministry of its originating country and the foreign ministry of the country where it is to be used. This process is usually handled by embassies and consulates of the concerned states. In the Philippines, the certification issued by the DFA is popularly called the “red ribbon.”

Once the Convention becomes effective, public documents would no longer need to be consularized. An apostillized public document will immediately have legal effect in a foreign country where it is presented. Of course, the affixing of a red ribbon is still needed for states which are not members of the Convention.

The apostille is a standard form that can be placed or attached to the original document. It testifies that a document bears the signature of an authorized person, the capacity of the signatory, and an official stamp or seal. It does not, however, certify the content or purpose for which the document was issued.

Covered Documents

Public documents that can be apostillized according to the Convention are the following:

a) documents emanating from an authority or an official connected with the courts or tribunals of the State, including those emanating from a public prosecutor, a clerk of a court, or a process-server (“huissier de justice“)

b) administrative documents

c) notarial acts
       Note: This may include seemingly “private” documents such as contracts and wills

d) official certificates which are placed on documents signed by persons in their private capacity, such as official certificates recording the registration of a document or the fact that it was in existence on a certain date and official and notarial authentications of signatures.

Those that are not valid for apostillization include:

a) documents executed by diplomatic or consular agents;

b) administrative documents dealing directly with commercial or customs operations.

 

The apostille, once it is fully implemented in the Philippines, can boost trade and investment while making personal transactions easier. It will be useful for the millions of Filipinos working abroad as well as the large number of expatriates who have made (or are planning to make) the Philippines their second home.