Registration with POEA for Manpower Recruitment Agencies

Pursuing a manpower recruitment business in the Philippines is feasible through registration of a corporation with the required Philippine equity or through partnership with an existing licensed recruitment office, or a single proprietorship with a license.  This license is obtained when registering the manpower recruitment company with the Philippine Overseas Employment Administration (POEA).  The POEA guidelines provide that only those who possess all the following qualifications may be permitted to register a company and engage in the business of recruitment manpower and placement of Overseas Filipino Workers (OFW). K&C will assist local and foreign companies with the requirements and registration process to register a manpower recruitment company or agency with the POEA, SEC, and BIR.  We will draft all contracts and consolidate all required documentation.  K&C works directly with its clients and POEA to ensure an efficient registration process.

Capital Requirements and Ownership

A manpower/recruitment agency must be 75% Filipino-owned and have a P2,000,0000 minimum paid-up capital.  You will be required to maintain a balance in a local bank of P500,000 and have a P1,000,000.00 escrow agreement with POEA (Philippine Overseas Employment Administration), as well as a P100,000 bond.

POEA Overview

The Philippine Overseas Employment Administration (POEA) is the government agency in the Philippines which is responsible for optimizing the benefits of the country’s overseas employment program. The POEA is attached to the Department of Labor and Employment (DOLE) and was created to promote and to monitor the overseas employment of Filipino workers.  POEA is also the lead government agency tasked to monitor and supervise all foreign-owned and local manpower recruitment agencies in the Philippines.  The POEA is also an ISO-certified organization.  This certification is proof of its international standards.

Most Common Employment for OFWs

  • IT
  • Maritime & Seafaring
  • Construction
  • Welding
  • Nursing
  • Medical
  • Domestic Help
  • Engineering
  • Hotel & Restaurant
  • Service Industry

POEA Primary Functions

Industry Regulation

  • Issues license to engage in overseas recruitment and manning to private recruitment agencies and ship manning companies
  • Hears and arbitrates complaints and cases filed against recruitment and manning agencies, foreign principals and employers, and overseas workers for reported violation of POEA rules and regulations, except for money claims
  • Implements a system of incentives and penalty for private sector participants
  • Sets minimum labor standards
  • Monitors overseas job advertisements on print, broadcast, and television
  • Supervises the government’s program on anti-illegal recruitment
  • Imposes disciplinary actions on erring employers, workers, and seafarers

Employment Facilitation

  • Accredits & registers foreign principals and employers hiring Filipino workers (OFWs)
  • Approves manpower requests of foreign principals and employers
  • Evaluates and processes employment contracts
  • Assists departing workers at the ports of exit
  • Develops and monitors markets and conducts market research
  • Conducts marketing missions
  • Enters into memorandum of understanding on the hiring of Filipino workers with labor-receiving foreign countries
  • Facilitates the deployment of workers hired through government-to-government arrangement
  • Provides a system of worker’s registry