Business Registration for Philippine Manufacturing Companies

Export Processing Zones (EPZs) are special locations established by the Philippine government, that are primarily geared toward assisting export-oriented manufacturing companies setting up business operations in the Philippines. There are currently four designated Export Processing Zones (EPZs) in the country: Bataan, Cavite, Baguio City, and Mactan Island in Visayas. To date, there are about 250 EPZ registered companies in the Philippines, most of which are involved in manufacturing and exporting of electronics, garments, rubber products, fabricated metals, plastics, electrical machinery, transport equipment, industrial chemicals, and other lucrative export products. Some incentives offered by Export Processing Zones (EPZs) in the Philippines include:

  • Tax-free importation of capital equipment
  • Duty-free importation of capital equipment
  • Tax-free importation of raw materials and spare parts
  • Duty-free importation of raw materials and spare parts
  • Tax holidays and exemptions

K&C assists foreign-owned manufacturing companies to set up business operations in the Philippines. We will determine the appropriate investment vehicle for you and your company and take you through the necessary procedures for setting up business operations here in the Philippines. We will also assist your company in determining PEZA or BOI eligibility, which will enable your company to avail of tax incentives and other government-issued exemptions.

Overview: Manufacturing Industry in the Philippines

Manufacturing accounts for nearly 24% of the Philippines’ total GDP, while manufactured goods comprise 90% of Philippine exports, including furniture and fixtures, transport equipment, petroleum products, miscellaneous manufactures, electrical machinery, leather products, beverages, paper and paper products, basic metal, fabricated metal products, non-metallic mineral products, rubber and plastic products, textiles, and many more. The Philippines is now considered one of the most competitive areas for manufacturing. After the unfortunate events in Japan, flooding in Thailand, the rising costs of countries such as Vietnam and China, the Philippines now is in position to lead manufacturing growth in Asia.

Philippine Manufacturing Zones

The bulk of the Philippine manufacturing industry is concentrated in Manila, the capital. The city boasts Manila Bay, which is considered the main entry point for raw materials and other kinds of goods. Manila also has a large local market, a highly competitive labor force, and some of the biggest financial institutions in the country. The city’s manufacturing industry comprises more than half of the total manufacturing employment in the country. Other important manufacturing zones in the Philippines include Northern Mindanao (around Iligan), Cagayan de Oro, Cebu City, and Davao.