Philippines

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Operating a Business in the Philippines

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
The Corporation is a joint-stock company. No minimum. 25% must be subscribed. 25% must be released at the incorporation.	Minimum 5 shareholders, maximum 15. A Majority of shareholders have to be Philippine residents. No maximum after the constitution. Liability is limited to the amount contributed.	0.1% of the capital amount, with a minimum of PHP 200 and a maximum of PHP 100 000, that is to say USD 3,850 .
A Closed Corporation is a closed joint-stock company No minimum. 25% must be subscribed. 25% must be released at the constitution.	Maximum 20 Liability is limited to the amount contributed.	0.1% of the capital amount, with a minimum of PHP 200 and a maximum of PHP 100 000, that is to say USD 3,850 .
Sole Partnership is a single-member company No minimum capital.	Only 1 person Liability is unlimited.	About PHP 110.
General Partnership No minimum capital.	Minimum 2 partners Liability is unlimited.	About PHP 110.
Limited Partnership No minimum capital.	Minimum 2 partners Liability is limited to the amount contributed.	About PHP 110.

Business setup procedures: The procedure of registration of a company with foreign participation varies according to its legal form. A single-member company should be registered at the BTRCP (Bureau of Trade Regulation and Consumer Protection) linked with the DTI (Department of Trade and Industry). A Public Limited Company or a Limited Liability Company should be registered at the SEC (Securities and Exchanges Commission).
The competent organization: Bureau of Trade Regulation and Consumer Protection (BTRCP), Securities and Exchange Commission (SEC).

Legal weekly duration: 8 hours/day, 40 or 48 hours/week.
Retirement age: 60
Working contracts: Employment contracts are regulated by legal clauses and to a lesser degree by collective agreements and individual negotiations.
The terms of employment contracts are extremely rigid.

Minimum wage: Varies depending on the region and the position occupied, between P200 (USD4) and P350 (USD7) a day.
Average wage: The minimum wage is determined at the regional level by the Regional Tripartite Wages and Productivity Board.
Social contributions: Social security contributions paid by employers: 5.6 %. Maximum 1 060 PHP/month. For further details, see here.
Social security contributions paid by employees: 3.76 %. Maximum 500 PHP/month. For further details, see here.

Social dialogue and involvement of social partners: The two main groups of trade unions are TUCP and FFW. They are affiliated to the international Confederation of Free Trade Unions (ICFTU ) and to the Worldwide Confederation of Labour ( WCL).
Unions: Federation of Free Workers.
Kilusang Mayo Uno
Unionization rate: 5% of workers are unionized.
Labor regulation bodies: Bureau of Labor and Employment Statistics (BLES)
Department of Labor and Employment

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