Determine Capital Requirement
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Doing Business in the Philippines: Determine Capital Requirement

Paid-up capital, also known as paid-in capital or contributed capital, represents the amount of money that a company receives 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?

Authorized capital is the maximum amount of capital that 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 higher authorized capital than its current need to be able to raise additional equity through the sale of its shares. At least 25%of authorized capital stock must be subscribed and 25% percent of the authorized capital stock must be paid at the time of incorporation. Paid-up capital should not be less than ₱5,000 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: ₱250,000
  • Cargo Consolidator: ₱400,000
  • Financing Company-Main:
    • 1st class cities: ₱10,000,000
    • Other cities: ₱5,000,000
    • Municipalities: ₱2,500,000
  • Financing Company-Branch:
    • 1st class cities: ₱1,000,000
    • Other Cities: ₱500,000
    • Municipalities: ₱250,000
  • Freight Forwarders:
    • Domestic: ₱250,000.00
    • International: ₱2,000,000
  • Health Maintenance Organization: ₱10,000,000
  • Insurance:
    • Insurance Broker: ₱20,000,000
    • Reinsurance Broker: ₱20,000,000
    • Insurance Broker and Reinsurance Broker: ₱50,000,000
    • Life Insurance Company: ₱1,000,000,000
    • Non-Life Insurance Company: ₱1,000,000,000
    • Reinsurance Company: ₱2,000,000,000
  • Investment Adviser/Manager: ₱10,000,000
  • Investment Company: ₱50,000,000
  • Investment House: ₱300,000,000
  • Lending Company-Main: ₱1,000,000
  • Lending Company-Branch:
    • 1st class cities: ₱300,000
    • Other Cities: ₱150,000
    • Municipalities: ₱75,000
  • Mining:
    • Authorized Capital Stock: ₱100,000,000
    • Paid-up Capital Stock: ₱6,250,000
  • Non-Vessel Operating Common Carrier: ₱4,000,000
  • Pawnshop: ₱100,000
  • Pre-Need Plan Issuer: ₱100,000,000
  • Pre-Need Plan Agent: ₱5,000,000
  • Recruitment for Local Employment:
    • Corporation: ₱1,000,000
    • Partnership: ₱1,000,000
  • Recruitment for Overseas Employment: ₱5,000,000
  • Retail Trade with Foreign Equity: US$2,500,000
  • School (for stock corporations):
    • Elementary Education: ₱1,000,000
    • Elementary & Secondary Education: ₱2,500,000
    • Elementary, Secondary, Tertiary: ₱5,000,000
  • Security Agency: ₱500,000
  • Securities Broker/Dealer (New/SRO-Member): ₱100,000,000
  • Securities Broker/Dealer (Existing/SRO-Member): ₱10,000,000
  • Securities Broker/Dealer in Proprietary Shares (Non-SROMember): ₱5,000,000
  • Special Purpose Vehicle: ₱31,250,000
  • Special Purpose Corporation: ₱5,000,000
  • Transfer Agent: ₱1,000,000

Based on Equity

  • Domestic Corporations with more than 40% foreign equity:
    • Domestic Market Enterprise: US$200,000
    • Export Market Enterprise: ₱5,000
  • Foreign Branch Office:
    • Domestic Market Enterprise: US$200,000
    • Export Market Enterprise: ₱5,000
  • Partnership with foreign partner:
    • Domestic Market Enterprise: US$200,000
    • Export Market Enterprise: ₱3,000
  • Foreign Representative Office: US$30,000
  • Regional Area Headquarters (RHQ): US$50,000
  • Regional Operating Headquarters (ROHQ): US$200,000

Source: Securities and Exchange Commission

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