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Start Business in Manila — Step-by-Step Guide

  • Writer: Rachel Yuan
    Rachel Yuan
  • Aug 8
  • 6 min read

_with legal checklist & estimated minimum investment in Manila


Start Business in Manila with Virtual Assistant help
Quick overview — the 8 core steps to start your business in Manila

  1. Validate idea & build a short business plan (market, costs, revenue model, breakeven).

  2. Choose a business structure — sole proprietorship, partnership, corporation, branch/representative office, or register in a special economic zone.

  3. Register your business name (DTI for sole proprietorship; SEC for corporations). (BNRS, Philippines Business Registration)

  4. Secure local permits — barangay clearance, Mayor’s permit / Business Permit (City of Manila), fire & sanitary permits, occupancy/lease documentation. (Emerhub)

  5. Register with the Bureau of Internal Revenue (BIR) — get a TIN, register books of accounts, and authority to print official receipts/invoices. (Philippines Business Registration)

  6. Register employees & contributions — SSS, PhilHealth, Pag-IBIG employer accounts and withholdings. (RESPICIO & CO.)

  7. Industry-specific licenses — FDA (food/health), DOT (tourism), Bureau of Customs (imports), environmental permits, BOI/PEZA registration if seeking incentives. (Philippines Business Registration, Wikipedia)

  8. Open a business bank account, set up accounting, and launch.


Detailed step-by-step

Step A — Plan & choose structure

  • Sole proprietorship (DTI) — easiest & fastest for micro/small retail or e-commerce.

  • Corporation (stock) (SEC) — recommended for growth, multiple shareholders, or foreign investors. Corporations give limited liability and easier access to capital.

  • Branch / Representative Office — for foreign parents that want presence without a local corporation (these have specific capital rules).

** Register with the right agency: DTI for sole proprietorship business names; SEC for partnerships & corporations; CDA for cooperatives. (BNRS, Philippines Business Registration)


Step B — Reserve & register the business name

  • Use the DTI Business Name Registry (BNRS) for sole proprietorships; SEC name reservation for corporations. You can do many of these steps online. (BNRS)


Step C — Barangay clearance & Mayor’s permit (City of Manila)

  • After name & national registration, apply for barangay clearance (local barangay office) and Mayor’s permit (business permit) from the City of Manila Business Permits & Licensing Office. You will usually need: lease contract / proof of address, identity documents, SEC/DTI papers, and barangay clearance. Processing times have improved under the Ease of Doing Business law but requirements vary by LGU. (Emerhub, RESPICIO & CO.)


Step D — BIR registration (tax)

  • Register your business with BIR for TIN, register books of accounts, obtain authority to print official receipts, and learn whether you must register as VAT or non-VAT (thresholds apply). There’s an annual registration fee and specific documentary requirements. (Philippines Business Registration)


Step E — Social & payroll registrations

  • SSS, PhilHealth, Pag-IBIG registrations as employer — enroll employees and set up contribution remittances. These are mandatory once you start hiring. (RESPICIO & CO.)

Step F — Industry permits & compliance

  • Food / Health / Cosmetics → Philippine FDA licensing (product registration, sanitary permits).

  • Import/Export → Bureau of Customs registration, and consider PEZA/BOI if you seek tax incentives or are export-oriented. (Philippines Business Registration, Wikipedia)

Legal considerations (must-know)

Licensing & sector limits

  • Some sectors are restricted or require Filipino ownership (e.g., certain utilities, land, mass media). Check the latest Negative List and sectoral rules before structuring ownership. (ASEAN Briefing)


Foreign ownership & minimum-capital rules (important)

  • Domestic Filipino corporations: statutory minimum paid-up capital is very low (₱5,000) on paper, but real capital needed depends on the business. (incorporation.ph)

  • Foreign-owned companies: typical rule of thumb: a minimum paid-up capital ≈ US$200,000 for companies serving the domestic market. This can be reduced to US$100,000 if the business employs at least 50 Filipinos or involves advanced technology, or if registered in certain economic zones or as an export enterprise. Export-oriented firms that meet export thresholds may be allowed 100% foreign ownership with much lower paid-up capital (even PHP 5,000) but will need extra documentation and approvals. Always confirm the precise classification and documentary requirements with SEC/BOI. (RESPICIO & CO., Emerhub, FilePino)

Tip: "If you’re a foreign entrepreneur, discuss entity type (local corp vs branch vs PEZA) with a lawyer — structuring determines capital rules, tax incentives, and allowed activities".

Tax & incentives

  • The Philippines introduced major tax incentive reforms to attract investment (new corporate tax rates and longer incentives for registered projects). Businesses that register with the BOI or locate in PEZA zones can access fiscal incentives (tax holidays, duty-free importation of capital equipment) — useful when planning investment sizing. (Reuters, Philippines Business Registration)

Minimum investment — realistic numbers & examples
Short answer: "It depends strongly on the structure and sector. below are typical ranges and factual thresholds to guide planning".

A. Micro / Sole proprietorship (local founder)

  • Legal minimum: DTI registration and statutory minimum capital can be very low — effectively you can start a micro retail or online service business with under ₱50,000–₱200,000 for basic setup (business registration fees, signage, small inventory, web presence). (This is a practical startup estimate — exact needs vary.) (BNRS)


B. Domestic corporation (Filipino-owned)

  • Statutory paid-up capital: ₱5,000 minimum on paper, but practical initial capital should be higher depending on operations (rent, staff, inventory, equipment). (incorporation.ph)


C. Foreign-owned domestic market company

  • Common rule of thumb: US$200,000 paid-up capital for typical domestic business.

  • Exemptions/reductions: US$100,000 if the company uses advanced technology or employs at least 50 people; lower if export-oriented or inside PEZA/SEZ. Confirm with SEC/BOI/practitioner. (RESPICIO & CO., Emerhub)


D. Retail foreign investors

  • Certain retail activities have separate minimum investment thresholds (example: historically large minimums like US$2.5M for some foreign retail setups) — check the Retail Trade Liberalization and current implementing rules. (HKTDC Research)

Reality check: even if the statutory minimum is low, realistic startup capital should cover at least 6 months of operating costs (rent, payroll, utilities, marketing, inventory). For Manila, factor in higher rents than secondary cities.


Practical timeline & costs (typical)

  • Name reservation & DTI/SEC filing: 1–7 days (online options speed this up). (BNRS)

  • Barangay & Mayor’s permit: a few days to 2 weeks depending on LGU inspections and completeness of documents. (Emerhub)

  • BIR registration: usually within days if docs are correct. (Philippines Business Registration)

  • Industry licensing (FDA / environmental): can take weeks to months depending on product approvals.


Compliance checklist (what to prepare & keep handy)

  • Valid IDs (passport for foreigners), TIN (once registered), lease contract or land title, DTI/SEC certificate, barangay clearance, Mayor’s permit, BIR registration & receipts, Social Security/PhilHealth/Pag-IBIG employer accounts, fire safety clearance, sanitary permit, industry-specific approvals (FDA, DOT, etc.), BOI/PEZA paperwork (if applicable).


Useful contacts & help
Final tips — do this before you start

  • Speak to a local CPA and lawyer — tax structure, foreign-ownership rules and incentives are area-specific and can materially affect your capital needs.

  • Visit the DTI Negosyo Center in Manila — they offer guidance for MSMEs and can help with initial registrations. (BNRS)

  • Consider a phased launch: start small (sole proprietorship or branch for non-revenue activities) while you validate demand; then scale into a corporation once revenue is stable.

  • Explore incentives (BOI/PEZA) — they can reduce your effective investment and operating costs but come with compliance strings attached. (Reuters, Philippines Business Registration)

Sources / further reading (key official & practical references)


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