A Guide on How to Register Your Business with BOI in the Philippines

Registering with the Philippine Board of Investments (BOI) unlocks significant fiscal and non-fiscal incentives to accelerate growth. Learn how to determine eligibility, prepare requirements, navigate filing and evaluation, secure your Certificate of Registration, and manage post-approval compliance.

• What is BOI Registration and Who Qualifies?
• What are the Eligibility Criteria and Qualifying Activities?
• Where Should You Register PEZA or BOI?
• What are the Key Incentives of BOI?
• What Prerequisites Do You Need to Prepare Before Applying?
• Step-by-Step BOI Application Process
• Frequently Asked Questions

What is BOI Registration and Who Qualifies?

The Board of Investments (BOI) under the Department of Trade and Industry (DTI) promotes investments in the Philippines. BOI registration is not a business license; it is an endorsement that unlocks government incentives.

Application is appropriate where the business activity aligns with the Strategic Investment Priority Plan (SIPP), the government’s framework identifying priority areas such as advanced manufacturing, green ecosystems, health, and technology. Projects fall into the following categories:

• Pioneer vs. Non-Pioneer. A Pioneer Project involves manufacturing a new product, adopting a new process, or undertaking an activity considered highly essential and inadequately served in the country. Non-Pioneer Projects encompass other qualifying activities under the SIPP. This classification often affects incentive duration.
• Export vs. Domestic Market Enterprise. An Export Enterprise ships at least 50% of its services or 70% of its goods abroad. A Domestic Market Enterprise primarily serves the local market and typically faces stricter eligibility requirements, such as higher investment thresholds or location in less developed areas.
  • This classification covers export-oriented service activities rendered to clients abroad and paid in foreign currency, with at least 50% export revenue for Filipino-owned enterprises or 70% for foreign-owned enterprises. Includes non-voice BPO operations such as analytics, data management, engineering, and architectural services.

What are the Eligibility Criteria and Qualifying Activities?

To qualify for BOI incentives, your project must fall under one of the SIPP’s preferred activities. While the SIPP is updated periodically, common qualifying sectors include:

• Manufacturing of essential goods (e.g., food, medical supplies)
• Infrastructure and logistics
• Green projects (e.g., renewable energy, energy efficiency)
• Research and development and technology-driven activities
• Agribusiness and fisheries
• Strategic services (e.g., IT-BPM, creative industries)
• Health and medical services
• Projects in less developed areas

Foreign-owned corporations may register if they qualify as Export Enterprises. For domestic market projects, foreign ownership is generally capped at 40%, unless specific laws permit higher equity.

Where Should You Register PEZA or BOI?

If your business is export-oriented and plans to operate within a designated economic zone, you may need to choose between registering with the Philippine Economic Zone Authority (PEZA) or the BOI. Below is the difference of PEZA and BOI:

• PEZA (Philippine Economic Zone Authority)
  • Location. Must locate inside a PEZA-designated ecozone or building.
  • Operating environment. Streamlined, zone-managed regime with one-stop shop support.
  • Customs and logistics. Integrated customs facilitation and bonded operations suited for regular import/export flows.
  • Permitting/admin. Centralized permits, faster turnarounds, coordinated utilities and site services.
  • Incentives. Typically includes income tax holiday (ITH), enhanced deductions or special tax regimes as applicable, plus VAT/duty incentives on imports under zone rules.
  • Best for. Pure or high-export firms that benefit from zone infrastructure and tight customs integration.
• BOI (Board of Investments)
  • Location. Operate anywhere in the Philippines; not limited to ecozones.
  • Eligibility basis. Must align with SIPP preferred activities; suitable for mixed export and domestic sales.
  • Customs and logistics. Standard customs processes; flexibility to work with multiple sites/suppliers outside zones.
  • Permitting/admin. Follow LGU/national permitting; less centralized than PEZA but more locational freedom.
  • Incentives. Typically includes ITH or enhanced deductions, with VAT/duty treatment based on activity and supply chain rather than zone status.
  • Best for. Companies need location flexibility, serving both export and domestic markets, or operating outside ecozones.

What are the Key Incentives of BOI?

Registering with the BOI grants access to cost-reducing incentives, with the final package determined by your project’s classification, location, and industry. The following are the key incentives of BOI:

• Income Tax Holiday (ITH)
  • Primary incentive: exemption from corporate income tax for a fixed period
  • Pioneer Projects: up to 6 years
  • Non-Pioneer Projects: up to 4 years
  • Location bonus: projects outside the National Capital Region (NCR) may receive longer ITH periods
• Enhanced Deductions (post-ITH)
  • Increased deductions on taxable income for eligible costs (e.g., depreciation, labor, research and development) 
• Duty Exemption on Imports
  • Tax- and duty-free importation of capital equipment, raw materials, and spare parts, subject to conditions
• VAT Zero-Rating on Local Purchases
  • For export enterprises: 0% VAT on locally procured goods and services directly used in the registered activity
• Employment of Foreign Nationals
  • BOI endorsement for the limited employment of foreign nationals in supervisory, technical, or advisory roles

What Prerequisites Do You Need to Prepare Before Applying?

Prior to submitting a BOI application, ensure your business is properly organized and meets all baseline national and local regulatory obligations.

• Business Registration. Register with the Securities and Exchange Commission (SEC) for corporations and partnerships, or the Department of Trade and Industry (DTI) for sole proprietorships.
• Tax Registration. Obtain your Taxpayer Identification Number (TIN) and Certificate of Registration from the Bureau of Internal Revenue (BIR).
• Local Permits. Secure required LGU permits for your office or facility, such as a Mayor’s/Business Permit.
• Sufficient Capitalization. Meet minimum paid-up capital requirements (especially for foreign-owned entities). Undercapitalization is a common cause of application denial.

In addition to local regulatory requirements, you may be required to submit all necessary documents to facilitate a smooth review. Below is the checklist of documentary requirements.

• BOI Application Form 501. The main application form properly completed and notarized.
• Project Study / Business Plan. A comprehensive document covering market, technical, financial, and management aspects; this is the core of your application.
• Financial Projections. At least five years of projected financial statements (Income Statement, Balance Sheet, Cash Flow Statement).
• Founder’s Financial Proof. For new companies without a track record, submit notarized statements of assets and liabilities of principal stockholders to demonstrate financial capacity. For existing companies, provide the latest Audited Financial Statements (AFS).
• SEC/DTI Registration Documents. Copies of your registration certificate, Articles of Incorporation, and By-Laws.
• Board Resolution. A notarized board resolution authorizing a company representative to file the BOI application.
• Proof of Location. A copy of the lease agreement for your office or facility, or the land/building title.
• List of Equipment. A detailed inventory of machinery and equipment to be used for the project.
• Organizational Chart. A chart showing key personnel and the management structure.
• Notarized Affidavits. Affidavits as required (e.g., confirming project timelines and commitments).

A Step-by-Step BOI Application Process

The BOI has streamlined applications via the One Window Investment Facilitation (OWIF) online portal. Below is the step-by-step process:

• Create an account. Register your company on the BOI OWIF portal.
• Complete the application. Fill out the online form and select your proposed activity from the SIPP list.
• Upload requirements. Scan and upload all documents from your checklist. Ensure files are clear and properly labeled.
• Pay fees. Settle the non-refundable filing fee through the portal payment channels.
• Undergo technical evaluation. A BOI evaluator will review your project study, financial models, and supporting documents for completeness and viability.
• Address clarifications and meetings. Respond promptly to queries or requests for additional documents. In some cases, you may be asked to present to a technical panel.
• Obtain board approval. Once satisfied, the evaluator will recommend approval to the BOI Management Committee or Board of Governors.
• Receive Certificate of Registration (COR). Upon approval, pay the registration fee to have your COR issued, detailing your registered activity, project terms, and incentives.