PEZA vs. BOI Registration: Tax Incentives for Philippine BPO Companies

by: Austin Shi

Foreign BPOs, call centers, and IT companies setting up business operations in the Philippines can opt for either PEZA or BOI registration. Registering with PEZA or BOI enables your company to avail of numerous tax incentives and exemptions, including but not limited to easier visa processing for expat employees, tax holidays of up to 4 years and other payment exemptions. In order to become eligible for these benefits, foreign companies must first comply with their respective registration agreements.

How to Register Your Company in the Philippines

by: Austin Shi

Registering a company in the Philippines can be a complicated and tedious process, even when equipped with the right information. However, a company can overcome these initial difficulties easily, if the correct procedure is followed accordingly, and if the necessary assistance is procured. This article will tackle the basics of registering a company in the Philippines, as well as registering for tax incentives with government agencies like PEZA and BOI. Furthermore, we will also look at the general business registration procedures that a company undergoes in incorporating a business in the Philippines, and discuss the best way to go about them. This article should not be taken as a comprehensive guide to Philippine business registration, as it only presents a general overview of the entire process.

Business Incorporation in the Philippines: How to Incorporate Legally.

by: Austin Shi

Foreign Business Ownership in the Philippines


Setting up a foreign-owned business in the Philippines is no walk in the park. A foreign-owned corporation must obtain the necessary permits and licenses, register with the proper government agencies, and make the required capital investments   before setting up business operations inside the country. Business Registration procedures in the Philippines are different for sole proprietorships, representative offices, branch offices, regional headquarters (RHQs), domestic corporations or subsidiaries. The type of business established by the foreign investor is determined by the kind of industry that he/she wants to engage in. Under the 1991 Foreign Investments Act (FIA), foreign investors are allowed to engage in any business enterprise, as long as it doesn’t fall under the foreign investments negative list established by the Philippine government, wherein foreign ownership is restricted to a small percentage of the company and the investor is required to establish a corporate presence inside the country.

Philippine BPO: Exploring Metro Manila’s Cyber Parks

Cyber Parks (Techno Parks, IT Parks, Ecozones) are ideal destinations for setting up a BPO or call center in the Philippines. Outsourcing companies prefer to locate business operations inside technoparks, mainly because of the large number of tax incentives and government exemptions available in these areas. Businesses established inside IT Ecozones are eligible for numerous benefits, including income tax holidays from 5-8 years, permanent residency status to foreign-based business owners and investors, as well as the payment of 5% tax on gross income after the company’s income tax holidays have expired. Government exemptions on capital equipment, the employment of foreign nationals, and gross income remittances are also readily available to foreign and locally-owned BPO companies in these areas. Metro Manila, considered as one of the top BPO destinations in the world, is home to a large number of these Cyber Parks, some of which include the Eastwood City Cyber Park in Libis, the McKinley Hill Cyber Park near Fort Bonifacio, UP-AyalaLand Technohub in PHILCOA, and the Northgate Cyber Zone in Alabang.

Philippine BPO: PEZA vs. BOI Registration, Weighing the Benefits

Outsourcing companies in the Philippines can opt for either PEZA or BOI Registration to obtain tax incentives in their respective fields of enterprise. Registering with either PEZA or BOI offers numerous benefits for start-up companies in the country, including easier visa processing for expat employees. However, only certain types of enterprises are eligible for PEZA or BOI registration and registrants must comply with the conditions of their respective registration agreements.

According to Amanda Carpo, senior corporate lawyer of Kittelson & Carpo Consulting, “Companies setting up operations in the Philippines must carefully weigh their options before registering with either PEZA or BOI. This will not only prevent unnecessary mistakes from being made, it will also ensure that your company receives the best possible benefits, under the best possible conditions.”