The Philippine government allows for companies to exist in the country under foreign laws. These entities are allowed to do business in the Philippines but are not technically Filipino companies. This allows them to retain 100% foreign ownership. The three structures are Branch Office, Representative Office, and Regional Headquarters, whether operating or not. Representative Offices are a good way to setup a business in the Philippines that is 100% foreign owned but with a small capital requirement of only 30,000 USD. Branch Offices are almost like Philippines Corporations except they operate entirely on foreign laws. Regional Headquarters are suitable only for businesses that plan to utilize the Philippines as a manufacturing or services hub in a much larger operation.

Triple i Consulting can help you decide what is the best organization for your business. We will quickly move to get your documents in place and your company registered to do business in the Philippines. Contact Us to setup a company under foreign laws.

Branch Office

Branch Office is a foreign corporation organized and existing under foreign laws that carries out business activities of the head office and derives income from the host country. It is required to put up a minimum paid in capital of US$200,000.00, which can be reduced to US$100,000.00 if

(a) activity involves advanced technology, or

(b) company employs at least 50 direct employees.

Registration with the SEC is mandatory.

Representative Office

Representative Office is foreign corporation organized and existing under foreign laws. It does not derive income from the host country and is fully subsidized by its head office. It deals directly with clients of the parent company as it undertakes such activities as information dissemination, acts as a communication center and promote company products, as well as quality control of products for export. It is required to have a minimum inward remittance in the amount of US$30,000.00 to cover its operating expenses and must be registered with SEC.

Regional Headquarters/Regional Operating Headquarters(RHQs/ROHQs)

Under RA 8756, any multinational company may establish an RHQ or ROHQ as long as they are existing under laws other than the Philippines, with branches, affiliates and subsidiaries in the Asia Pacific Region and other foreign markets.

Regional Headquarters(RHQs)

An RHQ undertakes activities that shall be limited to acting as supervisory, communication and coordinating center for its subsidiaries, affiliates and branches in the Asia-Pacific region.

It acts as an administrative branch of a multinational company engaged in international trade.

-It does not derive income from sources within the Philippines and does not participate in any manner in the management of any subsidiary or branch office it might have in the Philippines.

-Required capital: US$50,000.00 annually to cover operating expenses.

Regional Operating Headquarters (ROHQs)

An ROHQ performs the following qualifying services to its affiliates, subsidiaries, and branches in the Philippines.

General administration and planning

Business planning and coordination

Sourcing/procurement of raw materials components

Corporate finance advisory services

Marketing Control and sales promotion

Training and personnel management

Logistic services

Research and development services and product development

Technical support and communication

Business development

Derives income in the Philippines

Required capital: US$200,000.00 one time remittance.