Open a Limited Liability Company in the Philippines

If you are considering to open a limited liability company in the Philippines in 2026, you should know that this business form does not exist here. However, the Philippines corporation is the closest structure to the limited liability company in other countries. Our Philippines company registration specialists can offer more information on the types of companies available for foreign investors interested in doing business in this country.

Quick Facts
Minimum share capital when you set up a LLC in the Philippines	Generally USD $200,000 when the foreign ownership percentage is more than 40%
Minimum number of shareholders	1
Number of directors	1
Mandatory residency requirements	No
Local director required in the Philippines (Yes/No)	No
Time frame for the incorporation (approx.)	14 business days
Corporate tax rate in the Philippines	20% for companies with a net taxable income below PHP 5 million and assets below PHP 100 million 25% for corporations above this amount
Dividend tax rate	No tax for dividend payments between two Philippines corporations 10% withholding tax for dividend payments by a resident corporation to a resident individual
VAT Rate in the Philippines	12% standard rate and a 0% reduced rate or exemption
Number of double taxation treaties (approx. )	40
Annual meeting required	Yes – an annual stockholders’ meeting is required under the Revised Corporation Code (it may be held remotely)
Accounting and filing requirements	Annual filing 4 months after the end of the taxable year. Annual financial statements as per the IFRS, audited by an independent certified public accountant
Foreign-ownership allowed for those who set up a LLC the Philippines	Yes
Tax exemptions or incentives	Fiscal and non-fiscal incentives such as income tax holidays, simplified customs procedures for imports/exports. Subject to conditions
Additional licenses when you set up a LLC in the Philippines	Depending on the industry in which the LLC activates

What are the registration steps of a limited liability company in the Philippines in 2026?

Those interested in starting a business in Philippines under the form of a limited liability company must:

making a reservation for the company name with Securities and Exchange Commission in the Philippines ;
deposit the share capital with the chosen bank and obtain a bank statement which shows the deposit;
have the Articles of Incorporation and By-laws drafted and filed with the SEC online (eSPARC);
obtain the Certificate of Incorporation from the SEC;
register the company with the tax authorities, social security authorities and with the Home Development Mutual Fund;
obtain the special licenses related to starting its activities, if the case requires.

Whare are the main characteristics of the corporation in the Philippines?

Just like the limited liability company, the Philippines corporation offers limited responsibility to the founders of the business.

The requirements to open a limited liability corporation in the Philippines in 2026 are:

a minimum share capital is required for domestic corporations with more than 40% foreign equity;
the company must register its name with the Securities and Exchange Commission (SEC);
after SEC registration, the company must obtain a Barangay clearance before applying for the mayor's (business) permit.

Can a Philippines corporation be fully foreign-owned?

Yes. A Philippines corporationcan be fully foreign-owned or partially foreign-owned. If at least 60% of its capital is owned by Filipinos, the company is deemed a Philippine national.

If a limited liability company is 40% Filipino-owned and 60% foreign-owned, it will be considered a foreign-owned domestic corporation.

Why register a limited liability company in the Philippines?

Most foreign investors who open companies in the Philippines choose the corporation because:

it is the most popular type of company which resemble the limited liability company in most countries;
it has a fast incorporation procedure and minimum requirements in terms of shareholding structure;
the liability of the shareholders is limited to the amount they invested in the company;
it is suitable for small and medium-sized businesses, and can benefit from several tax advantages from dedicated to these types of companies;
it can be used for various purposes – from trading to investment holding, but also as subsidiaries of foreign companies;
the Philippines is one of the most developed economies in Southeast Asia and has very attractive legislation on foreign direct investments.

What are the cost of opening a limited liability company in the Philippines in 2026?

As mentioned before, the closest structure to a limited liability company in the Philippines is generally the Philippine corporation.

Our incorporation services start from USD 1,500, which is our most accessible base package for company formation assistance.

Clients may also choose additional services, depending on their needs, such as:

registered address services;
bank account assistance;
tax registration;
business permits and licensing;
ongoing compliance;
accounting or bookkeeping.

Official government fees are calculated separately and may vary depending on the company type, business activity, and registration requirements.

For this reason, the exact amount is usually confirmed after the main incorporation details are reviewed.

Other services

Our company formation consultants in Philippines can explain the features of the limited liability company.

Would you like to open a company in a different jurisdiction, for example in Taiwan? Our partners from CompanyFormationTaiwan.com can help you.

Moreover, if you are interested in expanding your business in another country, for example setting up an LTD in Singapore, our Singapore partners who are specialists in company formation matters can help you.

For assistance in drafting the incorporation documents of a Philippines limited liability company in 2026, you can rely on our local company formation agents. Contact us for assistance!