How to Set Up a Business in Clark Special Economic Zone and New Clark City

July 4, 2025

The Clark Special Economic Zone, encompassing the Clark Freeport Zone and New Clark City in Pampanga, Philippines, is a beacon for investors seeking a strategic foothold in Southeast Asia. This dynamic economic hub, located just 80 kilometers north of Metro Manila, offers unparalleled business opportunities in business process outsourcing (BPO), information technology, manufacturing, logistics, and tourism. With its robust infrastructure, favorable tax incentives, and proximity to Clark International Airport, the region has emerged as a premier destination for foreign and domestic enterprises aiming to capitalize on the Philippines’ growing economy. This article provides a comprehensive guide to setting up a business in Clark, detailing the benefits, requirements, and processes involved, with insights from Triple i Consulting, a trusted business registration and consulting services provider.

Benefits of Establishing a Business in the Clark Freeport Zone

The Clark Freeport Zone, a key component of the Clark Special Economic Zone, offers a range of advantages that make it an attractive destination for businesses. These benefits, designed to foster economic growth, give enterprises a competitive edge in the Philippine market. Below is a list of the primary benefits:

Tax Holidays and Incentives: Companies registered with the Clark Development Corporation (CDC) or the Philippine Economic Zone Authority (PEZA) may qualify for income tax holidays of up to six years, extendable under certain conditions, along with exemptions from local taxes and duties on imported capital equipment.
Duty-Free Importation: Businesses in Clark Freeport can import raw materials, capital equipment, and goods without paying customs duties, reducing operational costs significantly.
Strategic Location: Situated near Clark International Airport and major expressways, Clark Freeport ensures seamless logistics and international trade connectivity.
Skilled Workforce: The region benefits from a large pool of educated, English-proficient professionals, particularly suited for BPO, IT, and other knowledge-based industries.
Streamlined Business Processes: The CDC provides a one-stop shop for business registration, permits, and compliance, simplifying administrative procedures.
Robust Infrastructure: Clark Freeport boasts modern facilities, including reliable power, telecommunications, and high-speed internet, supporting diverse business operations.
Supportive Government Framework: Policies under the CREATE Act and other legislation enhance investment opportunities through fiscal and non-fiscal incentives.

These advantages position Clark Freeport as a leading commercial center, enabling businesses to thrive in a cost-effective and efficient environment.

Investment Opportunities in Clark, Pampanga

Encompassing the Clark Freeport Zone and New Clark City, Clark, Pampanga, presents diverse investment opportunities across multiple sectors. The region’s economic growth, driven by its status as a Clark economic hub, makes it a prime destination for investors. Below are the key opportunities available:

Business Process Outsourcing (BPO): Clark is home to numerous BPO companies, leveraging the area’s skilled, English-speaking workforce and low operational costs.
Information Technology and Innovation: The rise of IT parks within Clark Freeport supports tech startups, software development, and digital services.
Manufacturing and Industrial Operations: The Clark industrial park offers light and heavy manufacturing facilities, benefiting from duty-free importation and tax incentives.
Logistics and Aviation: Proximity to Clark International Airport makes Clark ideal for logistics, warehousing, and aviation-related businesses.
Tourism and Hospitality: With its growing reputation as a tourism destination, Clark supports investments in hotels, resorts, and recreational facilities.
Renewable Energy and Sustainability: New Clark City promotes green initiatives and attracts investments in renewable energy and sustainable infrastructure.
Government and Administrative Services: New Clark City’s National Government Administrative Center (NGAC) creates opportunities for businesses supporting government operations.

These opportunities align with the Philippines’ broader economic goals, making Clark a strategic choice for investors seeking long-term growth.

Requirements for Clark Special Economic Zone Registration

Registering a business in the Clark Special Economic Zone involves meeting specific requirements set by the Clark Development Corporation and, in some cases, PEZA. These requirements ensure compliance with local regulations and eligibility for incentives. Below is a list of key requirements for business registration in Clark:

Business Structure Selection: Based on your business needs, choose an appropriate structure, such as a sole proprietorship, partnership, corporation, or one-person corporation.
Articles of Incorporation and Bylaws: Corporations must submit articles of incorporation, bylaws, and a board resolution authorizing the account’s opening.
Valid Identification: Provide identification documents for signatories and key officers, including passports for foreign nationals.
Compliance with the Foreign Investments Negative List (FINL): Foreign-owned businesses must adhere to restrictions on foreign ownership in specific industries.
Minimum Capital Requirements: Depending on the business type, a minimum paid-up capital may be required, particularly for export-oriented enterprises.
Lease Agreement or Proof of Office Space: Businesses must secure a physical office or facility within the Clark Freeport Zone or New Clark City.
Environmental and Industry-Specific Permits: Certain industries, such as manufacturing or food processing, require additional permits, such as those from the Department of Environment and Natural Resources (DENR) or the Food and Drug Administration (FDA).

Meeting these requirements is critical to securing approval and accessing the benefits of operating in Clark.

Clark Freeport vs. PEZA Incentives: A Comparison

When setting up a business in Clark, investors must decide whether to register with the Clark Development Corporation or PEZA, as both offer distinct incentives. Understanding the differences is essential for optimizing benefits. Below is a comparison of Clark Freeport and PEZA incentives:

Tax Holiday Duration: Clark Freeport offers income tax holidays of four to six years, while PEZA provides similar holidays, extendable up to eight years for pioneer projects.
Duty-Free Importation: Clark and PEZA allow duty-free importation of capital equipment, raw materials, and supplies.
Value-Added Tax (VAT) Exemption: Clark Freeport businesses enjoy VAT exemptions on local purchases, while PEZA offers zero-rated VAT for ecozone transactions.
Local Tax Exemptions: Clark Freeport provides exemptions from local government taxes, whereas PEZA businesses may still face specific local fees outside ecozones.
Administrative Oversight: Clark Freeport is managed by the CDC, offering a streamlined one-stop shop, while PEZA oversees ecozones nationwide, with a broader network.
Industry Focus: Clark Freeport supports diverse industries, including tourism and logistics, while PEZA focuses primarily on export-oriented manufacturing and IT-BPO.
Visa Processing: Both entities facilitate visas, such as the 9(g) employment visa for expatriates, but Clark’s proximity to government offices can expedite processing.

Choosing between Clark and PEZA depends on the business model, industry, and long-term objectives. Each offers unique advantages.

How to Register a Business in the Clark Freeport Zone

Registering a business in the Clark Freeport Zone is designed to be efficient, but requires careful attention to detail to ensure compliance. Triple i Consulting, a trusted provider of business registration services, emphasizes the complexity of this process and the need for expert guidance. Below are the steps to register a business in Clark:

Determine Business Structure: In consultation with a business advisor, select the appropriate legal structure (e.g., corporation, partnership) to align with your goals.
Submit Application to CDC: Apply with the Clark Development Corporation, including articles of incorporation, bylaws, and identification documents.
Secure Lease Agreement: Obtain a lease for office or facility space within the Clark Freeport Zone, as a physical presence is mandatory.
Apply for Tax Incentives: If eligible, apply for tax holidays and other incentives through the CDC or PEZA, providing business plans and financial projections.
Obtain Necessary Permits: As required, secure industry-specific permits, such as environmental clearances or FDA licenses.
Register with Government Agencies: Complete registration with the Securities and Exchange Commission (SEC), Bureau of Internal Revenue (BIR), and other relevant agencies.
Open a Bank Account: Establish a corporate bank account with a board resolution and signatory identification.
Comply with Annual Requirements: File annual financial statements, tax returns, and general information sheets to maintain compliance.

Given the intricate nature of these steps, it is highly recommended that you seek assistance from Triple i Consulting to navigate the regulatory landscape and avoid costly errors.

New Clark City Business Guide: Opportunities and Requirements

New Clark City, a flagship project within the Clark Special Economic Zone, is envisioned as a modern, sustainable metropolis. It offers unique opportunities for businesses while requiring adherence to specific regulations. Below is a guide to opportunities and requirements in New Clark City:

Opportunities in Smart Infrastructure: New Clark City’s focus on sustainability supports businesses in renewable energy, innovative technology, and green construction.
Government Contracting: The National Government Administrative Center creates demand for services supporting government operations, such as IT and facilities management.
Real Estate and Commercial Development: The city’s master-planned design encourages investments in commercial complexes, residential projects, and mixed-use developments.
Registration with the Bases Conversion and Development Authority (BCDA): Businesses must register with the BCDA, which oversees New Clark City, submitting similar documentation as required for Clark Freeport.
Compliance with Sustainability Standards: Projects must align with New Clark City’s green building and environmental standards, requiring additional certifications.
Visa and Employment Regulations: Expatriates require work visas, such as the 9(g) or 47(a)(2), processed through the BCDA or PEZA.
Partnerships with Local Stakeholders: Collaborating with local government units and private developers can enhance project feasibility and access to incentives.

New Clark City’s forward-looking vision makes it an ideal location for innovative enterprises, supported by Triple i Consulting’s expertise in navigating its requirements.

Final Insights

The Clark Special Economic Zone, encompassing the Clark Freeport Zone and New Clark City, offers a compelling destination for businesses seeking growth in the Philippines. With its strategic location, robust infrastructure, and generous incentives, Clark is a leading economic hub in Southeast Asia. The advantages of setting up business in Clark are substantial, from tax holidays and duty-free importation to access to a skilled workforce and modern facilities. However, the complexity of business registration and compliance underscores the importance of expert guidance. By leveraging the opportunities in Clark, Pampanga, businesses can position themselves for long-term success in a dynamic and rapidly growing market.

Is Assistance Available?

Yes, Triple i Consulting, a trusted business registration and consulting leader, can streamline the complex process of setting up your business in Clark. Contact us today to schedule an initial consultation with one of our experts: