Manpower & Recruitment Agency Registration in the Philippines

Manpower and recruitment is one of the more nuanced sectors for foreign investors in the Philippines. The rules differ sharply depending on who is being recruited and where they are being placed. Understanding that distinction before you incorporate prevents costly restructuring later.

The critical distinction: overseas vs. domestic recruitment

Overseas recruitment — placing Filipino workers in jobs outside the Philippines — is a regulated, licensed activity under the Department of Migrant Workers (DMW), which absorbed the functions of the former Philippine Overseas Employment Administration (POEA). Foreign nationals are restricted to a maximum 25% equity stake in an overseas recruitment agency. This restriction is explicit in the 13th Foreign Investment Negative List (EO 113, effective May 2, 2026) and predecessor lists.

Domestic recruitment and staffing — placing workers in jobs within the Philippines, operating an executive search firm, or providing HR consulting to Philippine employers — is not subject to the 25% cap. These activities can be 100% foreign-owned, subject to the standard capital rules for domestic-market enterprises.

Overseas recruitment: what foreigners can do

A foreign investor who wants to participate in overseas recruitment can hold up to a 25% minority stake in a Philippine-incorporated recruitment agency. The remaining 75% must be held by Filipino nationals or corporations.

POEA/DMW licence requirements include:

• Minimum paid-in capital of PHP 5 million for a corporation.
• A cash bond and surety bond deposited with the DMW.
• An escrow deposit.
• Accreditation of foreign principals whose workers you will recruit for.
• Designated responsible officers who meet DMW fit-and-proper requirements.
• Full compliance with the Migrant Workers Act (RA 8042, as amended).

The licence process is detailed and carries ongoing compliance obligations — reporting on worker deployment, maintaining financial guarantees, and renewing accreditations. Chamberlain handles the corporate incorporation component; we work with DMW-specialist advisers for the licensing layer.

Domestic recruitment and HR services: open to foreigners

If your focus is domestic staffing, workforce solutions, or HR technology serving Philippine businesses or foreign companies hiring locally, you face no equity restriction. The company is treated as a domestic-market enterprise:

• Up to 100% foreign ownership permitted.
• Standard US$200,000 minimum capital if more than 40% foreign-owned, or US$100,000 if using advanced technology or maintaining a majority-Filipino workforce with at least 15 Filipino staff employed directly.
• SEC registration; DOLE accreditation if providing subcontracted labour (contracting/sub-contracting arrangements under DO 174).

See 100% foreign ownership rules and minimum capital requirements for 2026.

The registration process

For a domestic recruitment or HR company:

1. SEC incorporation — ordinary stock corporation or OPC.
2. BIR, Mayor’s permit, Barangay clearance.
3. DOLE accreditation (if providing contractual labour).

For an overseas recruitment agency (minority foreign participation):

1. SEC incorporation with Filipino majority shareholders.
2. DMW licence application — business plan, bonds, escrow, principal accreditation.
3. BIR and local permits.
4. Ongoing DMW reporting and renewal.

Recruitment agency registration — particularly on the overseas side — involves layers that most general incorporation services underestimate. Chamberlain maps the right structure for your situation before you commit. Book a consultation or review our pricing and the business registration overview.