Minimum Paid-Up Capital in the Philippines: The US$200,000 Rule and How to Be Exempt

There Is No Single Number: Four Variables Decide the Threshold

"What's the minimum capital to open a company in the Philippines?" is one of the questions we hear most, and it has no single answer. The minimum paid-up capital depends on four variables: the level of foreign ownership, whether you serve the domestic market or export, how many Filipinos you employ or whether you use advanced technology, and where you register (inside an economic zone or not). Move any of these levers and the bar can swing from a few thousand pesos all the way to US$200,000.

First, clear up a commonly confused set of terms: authorized capital is the ceiling of share capital in your articles; subscribed capital is what shareholders commit to take up; and paid-up capital is the money actually paid in — the figure that governs compliance. Foreign-capital thresholds almost always refer to paid-up capital. For the overall formation process, see our complete guide to registering a company in the Philippines.

Filipino-Owned Domestic Company: Usually No Fixed Minimum

If your company is Filipino-controlled and serves the local market, the good news is the bar is very low. Under the current Revised Corporation Code, most ordinary domestic corporations have no fixed minimum paid-up capital, and paid-up capital can in principle be as low as a few thousand pesos. The old law required at least 25% of subscribed capital to be paid up and not less than PHP 5,000; the current law has relaxed this, and general corporations no longer face a hard minimum share capital.

This is precisely why so many compliant structures hinge on who owns the shares: the moment a company is classified as a foreign-owned domestic-market enterprise, the bar jumps from "a few thousand pesos" to the "US$200,000" range. In other words, what usually decides whether you must put up US$200,000 is not the industry itself, but foreign equity and market orientation.

Foreign Domestic-Market Company: The US$200,000 Paid-Up Rule

When a company is foreign-owned and serves the Philippine domestic market (a domestic market enterprise), it falls under the well-known US$200,000 paid-up capital threshold. This rule comes from the Foreign Investments Act and is meant to reserve room for local SMEs — foreign investors doing local business must bring a meaningful amount of capital.

"Domestic market" means your goods or services are sold mainly to customers inside the Philippines, as opposed to "export-oriented" (see the next section). Note carefully that US$200,000 refers to paid-up capital, not paper authorized capital, and this money generally must be actually remitted into the Philippines with a bank certificate of inward remittance (more below). If your industry also involves foreign-equity caps, read our guide to 100% foreign ownership in the Philippines so you settle "can I own it fully" and "how much must I invest" together.

Capital Exemptions: Down to US$100,000, Export Enterprises and Economic Zones

US$200,000 is not set in stone. The following legal ways to lower the bar are worth serious evaluation:

• Down to US$100,000: if the company employs at least 50 direct Filipino employees, or uses advanced technology recognized by DOST/BOI, the paid-up threshold can be halved to US$100,000.
• Export-enterprise exemption: if at least 60% of output or sales is exported, the company is exempt from the US$200,000 threshold and can be set up at the general low capital of an ordinary corporation (as little as a few thousand pesos). This is the most common legitimate cost-saving route for foreign investors, and the go-to for many BPO and export-manufacturing projects.
• Economic-zone route: projects inside certain zones (such as PEZA parks) can have a capital bar as low as around US$50,000 (depending on the specific industry and zone rules), often stacked with tax incentives.

Choosing the right route often beats simply scraping together capital. Our company setup service sizes whether US$100,000, an export exemption, or a zone locator is the leanest, most compliant path for your business model.

Capital for Other Entity Types: Rep Office, Branch, RHQ / ROHQ

If you'd rather not register a local subsidiary and choose another vehicle, the thresholds differ:

• Representative Office: cannot earn income in the Philippines and only handles liaison, promotion, quality control and the like; the parent must remit about US$30,000 per year to sustain it.
• Branch Office: operates as an extension of the foreign parent and generally requires US$200,000 paid up; qualifying export or other conditions can lower this to US$100,000 or below.
• Regional Headquarters (RHQ): only coordinates and supervises the group's affiliates in Asia-Pacific and cannot earn income, with an annual inward remittance of about US$50,000.
• Regional Operating Headquarters (ROHQ): may provide qualifying services to group affiliates and earn income, with a paid-up threshold of about US$200,000.

Which entity you pick depends not only on capital but on whether it can earn revenue, plus tax and compliance load. If you're still comparing entry modes, our market-entry consulting can weigh subsidiary vs branch vs rep office vs RHQ/ROHQ for you.

"Paid-Up" Isn't a Paper Figure: Inward Remittance Is Mandatory

Many investors think that writing a big number into the articles counts as "having capital." It doesn't. For foreign-owned companies and branches, paid-up capital generally must be genuinely remitted into the Philippines from abroad, with a bank Certificate of Inward Remittance — one of the key documents for SEC registration and downstream compliance.

In other words, figures like US$200,000 / US$100,000 / US$50,000 are not paper authorized capital but real money that must be visible, remitted and documented. How and when the capital lands, and the papers required, vary by entity type and agency, so plan the remittance and certification flow before you register to avoid delays or refiling. Final requirements are subject to the SEC and your bank.

Next Step: Pin Down the Threshold That Actually Applies to You

The minimum capital in the Philippines ranges from a few thousand pesos to US$200,000, and the answer depends entirely on your foreign equity, market orientation, headcount and technology, and location. Rather than guessing among the figures, let a team familiar with SEC, BOI and PEZA practice run a capital assessment first — an export or zone route can often save a substantial sum, legally.

Yixing is a Makati-based firm focused on helping Chinese and foreign companies establish a compliant presence in the Philippines. If you want to know which capital tier applies to your project, whether you can be exempt, and how to remit the capital correctly, reach out for a free initial assessment — we'll give clear guidance based on current regulations and your actual situation. Final arrangements remain subject to the latest SEC and related rules and case-specific professional advice.