A Regional Headquarters (RHQ) is a Philippine entity established by a multinational corporation to act as its supervisory, communications, and coordination centre for its operations in the Asia-Pacific region. It is not a commercial entity — it cannot earn income from any Philippine source or from the affiliates it serves.
What an RHQ Does
An RHQ exists purely to support the multinational’s regional network. Its permitted activities include:
- Supervising and coordinating the activities of affiliates, subsidiaries, or branches in the region
- Acting as a communication hub — relaying directives and consolidating reporting
- Administrative and back-office support — internal only, not for sale to third parties
- Staff development and training co-ordination
Critically, it cannot contract directly with Philippine customers, generate invoices, or provide services for a fee — even to group companies. Once any fee changes hands, you are in ROHQ territory.
Annual Remittance
The foreign parent must remit at least USD 50,000 per year to fund the RHQ’s running costs. This is not capital — it is ongoing expense support, renewed annually and evidenced by a bank certificate of inward remittance submitted to the SEC. Failure to meet the remittance requirement can result in suspension or revocation of the RHQ’s licence.
Who Uses an RHQ
The RHQ structure is used by large multinationals that want:
- A Philippine office to coordinate their Asia-Pacific affiliates without creating a taxable commercial presence
- Philippine-based staff who manage regional reporting, HR, or logistics for the group
- A platform to apply for expat visas for senior personnel stationed in Manila
Because the RHQ earns no income, its corporate tax exposure is nil — it files returns reflecting zero taxable income. It is, in effect, a cost centre with a Philippine registration.
RHQ vs ROHQ
If you need to charge affiliates for services — finance, IT, human resources, marketing — the RHQ structure does not permit it. You would need a Regional Operating Headquarters (ROHQ) instead. The ROHQ carries slightly higher capital requirements and a different tax treatment but allows qualified service revenue from affiliates.
Registration
RHQ registration is handled by the SEC. The foreign parent must demonstrate that it is a multinational with affiliates in the region. The application requires parent company documents, evidence of regional presence, and the initial remittance.
See the entity types comparison for a side-by-side of all structures, or book a consultation to determine whether an RHQ, ROHQ, or domestic corporation best fits your setup. Transparent pricing is available on our website.
Frequently asked questions
Can an RHQ earn income in the Philippines?
No. A Regional Headquarters is prohibited from earning income from Philippine sources or from its affiliates. It is a cost centre funded entirely by the foreign parent — its role is supervisory and administrative, not commercial.
What is the annual remittance requirement for an RHQ?
The foreign parent must remit at least USD 50,000 annually to fund the RHQ's operating costs. This is an ongoing requirement evidenced by a bank certificate of inward remittance submitted to the SEC each year.
What is the difference between an RHQ and an ROHQ?
An RHQ only supervises and coordinates — it cannot earn any income. An ROHQ (Regional Operating Headquarters) can provide qualifying services to its affiliates and charge for them, making it a revenue-generating structure.