Software & IT Company Registration in the Philippines

Software and IT companies are among the most straightforward foreign investments in the Philippines. The regulatory environment is permissive, the incentive framework is generous, and the workforce is large and English-proficient. Here is what you need to know before incorporating.

Ownership & capital

Software development, SaaS, IT consulting, and technology product businesses are not restricted under the Foreign Investment Negative List (FINL). Foreigners can own up to 100% of the company.

Capital rules depend on your market:

• Export-oriented (software or services delivered predominantly to overseas clients) — qualifies as an export enterprise. No US$200,000 capital floor. Minimum capital is set by your subscribed shares under the Revised Corporation Code.
• Domestic-market IT (primarily serving Philippine clients) — the US$200,000 minimum capital rule applies if foreign ownership exceeds 40%.

Most foreign-owned IT companies structure their initial registration as export enterprises to stay below the capital threshold, then expand to domestic sales once established. We walk through this with you before you incorporate. See capital rules for 2026.

Incentives under CREATE MORE

The CREATE MORE Act (RA 12066) substantially enhanced incentives for IT and technology businesses registered with PEZA or BOI:

• Income Tax Holiday (ITH) — 4 to 7 years of zero corporate income tax on registered revenues. Duration depends on location (Metro Manila vs. outside NCR) and employment commitments.
• 5% Special Corporate Income Tax (SCIT) — flat 5% on gross income earned, replacing all national and local taxes, after the ITH period.
• Enhanced deductions available as an alternative to SCIT, particularly useful for R&D-intensive companies.
• Duty-free importation of equipment under PEZA.

PEZA requires your office to be inside an accredited IT building or economic zone — most Metro Manila IT parks and many provincial buildings qualify. BOI registration is location-agnostic but requires meeting activity criteria under the Strategic Investment Priority Plan.

The registration process

1. Structure — Ordinary Stock Corporation or One Person Corporation (for a sole foreign founder).
2. SEC incorporation — Articles, by-laws, stock subscription, name clearance.
3. PEZA or BOI application — business plan, headcount projections, facility letter.
4. BIR registration — TIN, books of account, official receipts.
5. Local permits — Barangay clearance, Mayor’s permit.
6. Mandatory benefits — SSS, PhilHealth, Pag-IBIG employer enrolment.

Typical timeline: 6–10 weeks from complete documents to a registered, incentivised entity.

Chamberlain handles every step at a published fixed price. Book a consultation and we’ll confirm your ownership structure, recommend PEZA vs. BOI, and quote the full registration cost before you commit. See the full business registration guide for context on entity types.