Doing Business in the Philippines: Determine Capital Requirement

A Paid-up capital, also known as paid in capital or contributed capital represents money that is not borrowed, it is the amount of money that is actually received from its investors or shareholders in exchange for shares of stocks. Paid-up capital may be in the form of cash, real property, service, equipment or anything of value.

Shareholders: Shareholders or stockholders are the owners of a stock corporation.

What is Authorized Capital?

An Authorized capital is the maximum amount of capital which a company is given permission to raise via the sale of stock. Should a company need additional equity in the future, it must apply for a much higher authorized capital than its current need to be able to raise additional equity through sale of its shares. At least twenty-five percent (25%) of authorized capital stock must be subscribed and twenty-five (25%) percent of the authorized capital stock must be paid at the time of incorporation. Paid-up capital shall in no case be less than five thousand (P5,000.00) pesos.

What is Subscribed Capital?

A Subscribed capital refers to the number of shares issued to the shareholders.

Paid-Up Capital Based on Industry

  • Break Bulk Agent: P 250,000.00
  • Cargo Consolidator: P 400,000.00
  • Financing Company-Main
    • 1st class cities: P 10,000,000.00
    • Other cities: P 5,000,000.00
    • Municipalities: P 2,500,000.00
  • Financing Company-Branch
    • 1st class cities: P 1,000,000.00
    • Other Cities P: 500,000.00
    • Municipalities: P 250,000.00
  • Freight Forwarders
    • Domestic: P 250,000.00
    • International: P 2,000,000.00
  • Health Maintenance Organization: P 10,000,000.00
  • Insurance
    • Insurance Broker: P 20,000,000.00
    • Reinsurance Broker: P 20,000,000.00
    • Insurance Broker and Reinsurance Broker: P 50,000,000.00
    • Life Insurance Company: P 1,000,000,000.00
    • Non-Life Insurance Company: P 1,000,000,000.00
    • Reinsurance Company: P 2,000,000,000.00
  • Investment Adviser/Manager: P 10,000,000.00
  • Investment Company: P 50,000,000.00
  • Investment House: P 300,000,000.00
  • Lending Company-Main: P 1,000,000.00
  • Lending Company-Branch
    • 1st class cities: P 300,000.00
    • Other Cities: P 150,000.00
    • Municipalities: P 75,000.00
  • Mining
    • (Authorized Capital Stock): P 100,000,000.00
    • (Paid-up Capital Stock): P 6,250,000.00
  • Non-Vessel Operating Common Carrier: P 4,000,000.00
  • Pawnshop: P 100,000.00
  • Pre-Need Plan Issuer: P 100,000,000.00
  • Pre-Need Plan Agent: P 5,000,000.00
  • Recruitment for Local Employment
    • Corporation: P 500,000.00
    • Partnership: P 200,000.00
  • Recruitment for Overseas Employment: P 5,000,000.00
  • Retail Trade with Foreign Equity: P 2,500,000.00
  • School (for stock corporations)
    • Elementary Education: P 1,000,000.00
    • Elementary & Secondary Education: P 2,500,000.00
    • Elementary, Secondary, Tertiary: P 5,000,000.00
  • Security Agency: P 500,000.00
  • Securities Broker/Dealer (New/SRO-Member): P 100,000,000.00
  • Securities Broker/Dealer (Existing/SRO-Member): P 10,000,000.00
  • Securities Broker/Dealer in Proprietary Shares (Non-SROMember): P 5,000,000.00
  • Special Purpose Vehicle: P 31,250,000.00
  • Special Purpose Corporation: P 5,000,000.00
  • Transfer Agent: P 1,000,000.00

Based on Equity

  • Domestic Corporations with more than 40% foreign equity
    • Domestic Market Enterprise: US $ 200,000.00
    • Export Market Enterprise: P 5,000.00
  • Foreign Branch Office
    • Domestic Market Enterprise: US $ 200,000.00
    • Export Market Enterprise: P 5,000.00
  • Partnership with foreign partner
    • Domestic Market Enterprise: US $ 200,000.00
    • Export Market Enterprise: P 3,000.00
  • Foreign Representative Office: US $ 30,000.00
  • Regional Area Headquarters (RHQ): US $ 50,000.00
  • Regional Operating Headquarters (ROHQ): US $ 200,000.00

Legend:
(P) Philippine Peso
(US$) U.S. Dollar

Source: Securities and Exchange Commission

Business Registration in the Philippines