Starting a Business in the Philippines

Starting Business PhilippinesWhy would anyone want to start and do business in the Philippines?

The bureaucratic and legal hurdles a company or entrepreneur must overcome to incorporate and register a new firm here can be frustrating. However, with the help of a business consultant, that has extensive experience in Philippines business registration and setting up foreign owned businesses here, such as Dayanan Business Consultancy, that is not an issue.

The fact that so many foreign companies have regional headquarters, representative offices, foreign branch offices and other business setups in the Philippines, speaks volumes that it is well worth wading through the red tape to have operations here.

English Speaking and Talented Human Resources

One of the biggest advantages of doing business in the Philippines is that it has a higher level of English proficiency than any other Asian country. There is also an immense pool of talented Filipino graduates and experienced workers providing cost effective human resource solutions.

In addition, the Philippine Government offers incentives through a dozen Investment Promotion Agencies (IPAs) promoting “Economic Zones” in selected areas of the country. Incentives include various tax exemptions, tax holidays, special investor’s visas, and others to promote investment in businesses.

These include:

•    The Philippine Board of Investments (BOI)
•    The Philippine Economic Zone Authority (PEZA)
•    The Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
•    Aurora Special Economic Zone Authority
•    Authority of the Freeport Area of Bataan (AFAB)
•    Bases Conversation Development Authority (BCDA)
•    Clark Development Corporation
•    Cagayan Economic Zone Authority (CEZA)
•    PHIVIDEC Industrial Authority
•    Philippine Retirement Authority
•    Regional Board of Investments (ARMM)
•    Subic Bay Metropolitan Authority (SBMA)
•    Zamboanga Economic Zone Authority

These secure ready-to-occupy world-class, environment-friendly, and competitively priced Special Economic Zones are waiting for various types of businesses, both commercial and industrial, to take advantage of them.

Depending on which Investment Promotion Agency is being utilized; these can include manufacturing, BPO, tourism, agri-business, IT services and more.

For example, the Philippine Board of Investments is focused on BPOs, the electronics industry, shipbuilding, and renewable energy. PEZA’s priorities are focused more on manufacturing and industrial agricultural manufacturing for export and BPO’s, as well as overall economic zone development and operation. There is some overlap in the kinds of businesses to which the IPAs will grant incentives.

It’s More Fun in The Philippines!

The Tourism Infrastructure and Enterprise Zone Authority of course – “encourage local and foreign investments in our tourism industry through the establishment of Tourism Enterprise Zones (TEZs) in strategic areas of the country.”

The tourism industry opens up a tremendous amount of opportunities for businesses, especially in the small to medium range.
TIEZA is giving incentives for the development of tourism related businesses such as:

•    Travel and tour services
•    Transport services – land, sea, and air
•    Adventure sports such as mountaineering, spelunking, and scuba diving
•    Convention organizers
•    Accommodation establishments – hotels, resorts, condotels, Inns, motels and homestay operators that cater to tourist
•    Tourism estate management services
•    Restaurants, shops, and department stores
•    SPAs
•    Health and Wellness facilities
•    Museums and Galleries (Especially in cultural heritage zones)
•    Theme Parks
•    Convention Centers
•    Zoos

To learn more about the procedures, time, and cost involved in starting a business in the Philippines, business contact the DBC Team now for a free consultation.

Registration of Online Casino Gaming Gambling Sports Betting License Philippines

Philippines Online Casino License
Philippines Online Casino License

CEZA together with First Cagayan Leisure and Resort Corporation and North Cagayan Gaming & Amusement Corporation are no longer issuing licenses.


Foreign companies can obtain licenses in the Philippines to operate online gaming/e-gaming, online casino and sports betting businesses. A 100% foreign owned company can register and operate an online gaming business in the Philippines as a domestic corporation or by opening a branch office licensed by the SEC to transact business in the Philippines.

Officially, the only area where online gaming licenses are valid is the Cagayan Special Economic Zone (CEZA), but many operations are actually situated in Metro Manila due to the lack of the necessary infrastructure at the time the first licenses were awarded.

Incentives for CEZA Registered Enterprises:

•    4-6 years income tax holiday;
•    Special tax rate of 5% of gross income in lieu of all local and national taxes;
•    Tax credits for foreign corporations;
•    Tax and duty free importation of articles, raw materials, capital goods, equipment and consumer items;
•    Permanent resident status for foreign investors and immediate family (must maintain not less than USD150, 000 capital);
•    Other applicable incentives under Omnibus Investment Code of 1987:

o    Multiple entry visa, valid for a period of two years;
o    Tax treatment of merchandise in the Zone;
o    Tax credits;
o    Additional deduction for labor expense;
o    Exemption from local taxes and licenses;
o    Exemption from Contractor’s Tax;
o    Exemption from Wharfage Dues and any Export Tax, Duty, Impost and Fee on non-traditional export products

Full License (includes E-Casino and Sports Book)

New Application

The fees for a new application are USD40,000 (includes a non-refundable USD15,000 deposit payable upon submission of application) the balance of USD25,000 is to be paid upon issuance of the provisional of official license.

Gaming Levy: 2% of Gross Win/month from e-casino operations (on top of the special  CEZA tax rate) (Gross Win = Turnover – Player wins – Merchant Discount)

USD48,000 /annum for Sports book operations payable upon the issuance of the provisional or official license.

Annual Renewal Fees:

USD40,000 of which USD15,000 may be offset against the gaming levy payable each year.

Gaming Levy: 2% of Gross Win/month from e-casino operations (on top of the special CEZA tax rate) (Gross Win = Turnover – Player wins – Merchant Discount)

USD60,000 / annum for Sports book operations payable upon the issuance of the provisional or official license.

Restrictive Interactive Gaming License (Sports Betting):

New Application

The fee for a new application is USD26,000 upon submission of the application, of which USD18,000 is refundable if the application is unsuccessful.

USD2, 700 – Probity Cost per application chargeable to the applicant.
USD48,000 /annum – Restrictive Interactive Gaming Tax payable upon the issuance of the provisional license or official license.

Annual Renewal Fees for Restrictive Interactive Gaming License (Sports Betting):

USD15,000 – Renewal fee for Restrictive Interactive Gaming License payable upon submission of the documentary requirements necessary for renewal

USD60,000 /-annum – Restrictive Interactive Gaming Tax payable upon the renewal of the license.
Note: The fee for each additional Sporting Event is USD2,000 (per year)

Contact Dayanan Philippines Business Consultants for assistance with your application for registration of an online casino license.