How to Set Up a Representative Office in the Philippines: A Detailed Guide for 2025

November 18, 2025

Register a Representative Office in the Philippines

Establishing a representative office in the Philippines is an excellent way for foreign companies to explore the market and build a presence without engaging in direct income-generating activities. It serves as a vital platform for conducting market research, liaison functions, quality control, and promotional activities, ensuring compliance with Philippine laws while minimizing operational risks.

As the Philippines continues to attract international investments due to its strategic location, skilled workforce, and investor-friendly policies, understanding the step-by-step process for setting up a representative office efficiently is essential for foreign businesses targeting growth in 2025.

What Is a Representative Office?

A representative office is a non-commercial entity established by a foreign corporation or company to promote its business interests in the Philippines through activities such as market research, negotiations, technical assistance, or liaison work. It does not generate income, sign contracts, or sell goods or services directly within the country. Instead, it acts as an extension of the parent company, facilitating entry, understanding, and networking within the local market.

Key Features of a Representative Office

Non-Commercial: It is prohibited from engaging in revenue-generating activities.
Limited Operations: Focused on promoting, coordinating, and monitoring activities related to the parent company’s interests.
Funder’s Commitment: Fully funded by the parent company through inward remittance.
Legal Recognition: Requires registration and licensing from the Securities and Exchange Commission (SEC).

This structure is favored by companies wishing to test the Philippine market, support export or franchise activities, or establish a liaison point without risking extensive compliance obligations.

Why Establish a Representative Office?

Choosing to set up a representative office is strategic for many reasons:

Market Exploration: Conduct feasibility studies, market surveys, and relationship-building without full business commitments.
Cost-Effective Entry: Avoids heavy costs associated with full operational subsidiaries.
Legal Simplicity: Easier registration process compared to establishing a branch or wholly owned subsidiary.
Brand Presence: Enhances brand recognition and rapport with local businesses and government agencies.
Regulatory Compliance: Exempt from income tax on non-revenue activities, simplifying tax obligations.

In a rising economy like the Philippines, representative offices serve as vital tools for multinational companies to keep a pulse on business prospects while complying with local legal frameworks.

Step-by-Step Process for Setting Up a Representative Office

Establishing a representative office involves several critical steps, from assessing eligibility to completing registration and securing permits. The process must align with recent regulations, specifically the Securities and Exchange Commission (SEC) requirements and inward remittance rules.

Step 1: Eligibility Assessment and Preliminary Planning

The parent company must be legally registered and operational for at least three years in its home country.
The company must have sufficient financial backing, evidenced by a minimum inward remittance of US$30,000 for operational expenses.
The nature of activities must be non-revenue generating, with a focus on promoting or liaison functions only.
Determine the scope of activities and the location of the office, usually within business districts or economic zones.

Step 2: Prepare Required Documents

Gather these documents, certified and apostilled where necessary:

SEC Application Form No. F-104: Application to establish a representative office.
Board Resolution: Notarized and apostilled, authorizing the parent company to establish a representative office in the Philippines.
Financial Statements: Audited financial statements of the parent company for the last three years.
Articles of Incorporation: Certified copies, duly legalized.
Proof of Funding: Bank transfer certificates showing inward remittance of at least US$30,000.
Power of Attorney or Designation Letter: To appoint a Filipino or foreign representative.

Step 3: Reserve and Register the Business Name

Reserve the name of the representative office with the SEC via the online eSPARC system.
Ensure the name is unique and complies with SEC naming rules.

Step 4: Filings and Application Submission

Submit the complete application, including all required documents, to the SEC either online or directly at their regional or satellite offices.
Pay the required registration fees, which range from PHP 5,000 to PHP 10,000, depending on the scope and size of the representative office.
Await approval, which typically takes around 4-6 weeks.

Step 5: Obtain License to Operate

Once approved, the SEC issues a License to Do Business.
Register with the Bureau of Internal Revenue (BIR) to obtain a Taxpayer Identification Number (TIN)—though the office is generally exempt from income tax on its non-revenue activities.
Register with the local government unit (LGU) to obtain a business permit and a barangay clearance.

Step 6: Set Up Office and Appoint Local Representatives

Secure office space within legal parameters, such as an office lease or rental agreement.
Appoint a resident or foreign representative to handle official communications and legal correspondence.
Ensure staffing complies with Philippine labor laws, and register employees with SSS, PhilHealth, and Pag-IBIG agencies as needed.

Important Considerations and Compliance

Funding: All operational costs must be funded via inward remittance from the parent company.
Restrictions: The representative office is prohibited from directly participating in profit-making activities or signing binding contracts.
Renewals: The SEC license must be renewed annually; renewal depends on compliance and continued funding.
Reporting: The regular submission of financial statements and activity reports to the SEC is mandatory to maintain registration.

Additional Permits and Sector-Specific Licenses

Depending on the activities, certain industries may require sector-specific licenses—such as those in health, education, or information technology—and should be secured accordingly.

Final Insights

Setting up a representative office in the Philippines is a smart entry option for foreign companies aiming to explore or promote their business abroad without incurring heavy operational costs or legal complexities. It provides a legal foothold in the Philippines, facilitates market research, and ensures compliance with government rules—a vital first step toward sustainable expansion.

Is Assistance Available?

Partnering with experienced consultants like Triple i Consulting can streamline your registration process, ensure compliance, and help you navigate legal requirements efficiently. Contact us today to start your Philippine market entry with confidence: