Quick answer — Philippine One Person Corporation at a glance. Since 2019, a single foreign or Filipino individual can form a One Person Corporation (OPC) with the Securities and Exchange Commission. Foreign ownership is limited in sectors on the Foreign Investment Negative List, and foreign-owned companies serving the domestic market generally need paid-in capital of at least US$200,000, with reductions for advanced technology or local hiring. Corporate tax is 25%, or 20% for smaller corporations.
The Philippines combines English as a business language, a large and skilled workforce, low living costs and a growing community of remote workers in Manila, Cebu and Siargao. A digital nomad visa framework was introduced in 2025, and the One Person Corporation has made it easier for a single founder to incorporate without partners.
For foreigners, the key constraints are not the tax rate but ownership and capital rules. The Constitution and the Foreign Investment Negative List reserve some sectors for Filipinos or cap foreign ownership. Foreign-owned companies that sell to the domestic market face a high minimum paid-in capital, while export-oriented businesses are treated more flexibly.
It does not suit remote workers serving foreign clients who can use the digital nomad visa without a local company, or founders in restricted sectors without Filipino partners. It is not designed for locally employed expats or retirees.
Comparing Asian options? See our guide to company setup in Asia for foreigners.
If you are comparing destinations, see the foreign-owned PT PMA and the Sri Lanka company for foreigners.
The digital nomad visa framework is for remote workers earning income from outside the Philippines. Running a local company and working in it usually requires a work visa and an Alien Employment Permit. Resident foreign individuals are generally taxed only on Philippine-source income, while citizens are taxed on worldwide income.
An OPC requires a single stockholder, who usually acts as president, plus a nominee and alternate nominee to take over if the stockholder dies or is incapacitated. A corporate secretary must be appointed, and the single stockholder cannot also be the secretary.
Amounts are indicative.
For an export-oriented service company, the Philippines can be cost-effective: no domestic-market capital minimum, 20–25% corporate tax, and zero-rated VAT on qualifying export services. For a domestic-market business, the capital requirement is usually the deciding cost.
Philippine banks open corporate accounts once SEC and BIR registrations are complete; expect in-person visits and full KYC on the stockholder and officers. Inward remittances of foreign capital should be documented.
The Philippines Business Bank Comparison Guide compares the main banks for foreign-owned corporations — get it when you start your Philippine setup with Heavnn.
Yes, for export enterprises and in sectors not restricted by the Negative List. Domestic-market enterprises more than 40% foreign-owned generally need minimum paid-in capital of US$200,000, reducible in some cases.
It is a corporation with a single stockholder, introduced by the Revised Corporation Code in 2019. The stockholder must designate a nominee and an alternate nominee.
The regular rate is 25%. Corporations with net taxable income up to PHP 5 million and total assets up to PHP 100 million pay 20%.
A digital nomad visa framework was established in 2025 for remote workers earning income from abroad. It is not a work permit for a local company.
Resident foreign individuals are generally taxed only on Philippine-source income. Filipino citizens resident in the Philippines are taxed on worldwide income.
In the Philippines, your market and sector decide the capital you need. Heavnn checks both first.
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This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
