How to Register Your Business in the Philippines with PEZA for Local and Foreign Enterprises – Guide 2025

Expanding your business in the Philippines starts with understanding Investment Promotion Agencies (IPAs). Registering with the Philippine Economic Zone Authority (PEZA) can offer significant benefits like tax incentives and smoother operations.

This guide provides a concise overview of how to register your business with PEZA, including key documents and requirements, to help you seamlessly navigate this crucial step for business growth.

• What is PEZA?
• What are the Documentary Requirements When Registering with PEZA?
• What is the Registration Process with PEZA?
• What are the Tax Incentives Provided by PEZA?
• Frequently Asked Questions

Philippine Economic Zone Authority (PEZA)

The Philippine Economic Zone Authority (PEZA) is a pivotal government agency in the Philippines, driving the creation of economic zones to attract foreign investments. By offering enticing incentives and robust support, PEZA empowers businesses in these zones to thrive. This strategic approach not only facilitates ease of doing business but also spurs economic growth and development across the nation.

Documentary Requirements Needed for PEZA Registration

Foreign enterprises looking to register with PEZA need to submit specific documents as mandated by Section 4, Rule 6 of the CREATE Implementing Rules and Regulations (IRR). This essential step ensures compliance and eligibility for the benefits offered within the economic zones.

For enterprise-level Information:

• DTI or SEC Certificate of Registration, whichever is applicable
• Bureau of Internal Revenue (BIR) Certificate of Registration
• Tax Identification Number (TIN)
• General Company Information
• Business capitalization and Ownership Structure
• Authorized Business Representative Details
• Latest Audited Financial Statement (AFS), if applicable

For Project or Activity-level Information:

• Location address, contacts, activity representative details
• Description, classification, and type of activity
• Project or activity set-up timetable
• Committed investment capital and other related details
• Facility or utility requirements
• Projected financial performance
• Projected sales, raw materials, and production
• Projected employment, by type

PEZA may require additional documents depending on the nature of your business or application, such as:

Entrepreneurs looking to benefit from tax incentives in the Philippines can register their businesses with PEZA, even if operations haven’t started yet. It’s crucial to first establish a physical office within the designated Special Economic Zones (SEZ) offered by PEZA.

Furthermore, for those aiming for full foreign ownership, it’s important to comply with the government’s Foreign Investments Negative List.

Generally, PEZA follows a 7-step registration process:

1. Submit application documents for pre-screening
2. Pay application fee of ₱3,600 and secure official receipt
3. Submit the duly accomplished application form along with other required documents
4. Wait for receipt of Board Resolution
5. Submit Pre-Registration requirements as stated in Board Resolution
6. Pay registration fee of ₱6,000
7. Sign registration agreement with PEZA

PEZA requires specific sets of documents tailored to the type of business and industry you plan to engage in.

Under the recent updates in PEZA Memorandum Circular No. 2021-48, both new and existing enterprises operating in designated economic zones must register their businesses with the PEZA Information System on Compliance to Environmental Standards (PISCES).

• Cavite Economic Zone
• Mactan Economic Zone & Mactan Economic Zone-II-SEZ
• Baguio City Economic Zone
• Pampanga Economic Zone
• Laguna International Industrial Park-SEZ
• Gateway Business Park-SEZ
• Subic Shipyard-SEZ
• Clark TI-SEZ

As mandated by PEZA under Memorandum Circular No. 2021-47, businesses are required to register through the PEZA Electronic Application Registration System (eARS). This process ensures a streamlined and efficient registration experience, aligning your enterprise with regulatory standards.

Tax Incentives Provided by PEZA

PEZA-registered enterprises can enjoy the following incentives, but not limited to:

• Income tax holiday (ITH) of four to six years
• Special corporate income tax (SCIT) rate of 5% based on gross income in lieu of national and local tax rates for five to 10 years
• Value-added tax (VAT) zero-rating and exemptions on importation or local purchases of goods and services directly and exclusively used on the registered project.
• Duty exemption on imported capital equipment, raw materials, spare parts, or accessories
• Exemption from wharfage dues and export tax, duty, impost, and fees
• Employment of foreign nationals in supervisory, technical, or advisory positions

Moreover, the enactment of CREATE law provided new rules for the incentive system in the Philippines. It introduces a targeted incentive system that categorizes industries into different tiers. These tiers receive various incentives that can be useful for their business.

The tier system is as follows:

These industry tiers enable Investment Promotion Agencies (IPAs) to effectively identify and tailor fiscal and non-fiscal incentives for foreign businesses investing in the Philippine market. This strategic approach ensures that investors receive the most relevant benefits, enhancing their potential for success and fostering a favorable investment climate.