Philippines

Ease of Doing Business in

Philippines

This page summarizes Doing Business 2015 data for Philippines. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region East Asia & Pacific
Income Category Lower middle income
Population 98,393,574
GNI Per Capita (US$) 3,270
City covered Quezon City
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
95 86 down -9

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
62.08 62.08 0.00
Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

Subnational Data


Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2015 Rank 161 DB 2014 Rank*** 154 Change in Rank down-7
DB 2015 DTF** (% points) 67.23 DB 2014 DTF** (% points) 66.40 Change in DTF** (% points) up0.83

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Philippines East Asia & Pacific OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
16.0 7.3 4.8

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
34.0 34.4 9.2

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
16.6 27.7 3.4

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in min. capital (% of income per capita)
3.6 256.4 8.8
No. Procedure Time to Complete Associated Costs
1 Verify and reserve the company name with the Securities and Exchange Commission (SEC) 1 day PHP 40
2 Deposit the paid-in minimum capital at the bank 1 day no charge
3 Notarize articles of incorporation and treasurer's affidavit at the notary 1 day PHP 500
4 Register the company with the SEC and receive pre-registered Taxpayer Identification Number (TIN) 2 days on average see procedure details
5 Obtain barangay clearance 1 day PHP 500
6 Pay the annual community tax and obtain the community tax certificate (CTC) from the City Treasurer's Office (CTO) 1 day PHP 500
7 Obtain the business permit to operate from the BPLO 6 days see procedure details
8 Buy special books of account at bookstore 1 day PHP 400
9 Apply for Certificate of Registration (COR) and TIN at the Bureau of Internal Revenue (BIR) 1 day PHP 100 (certification fee) and PHP 15 (documentary stamp tax, in loose form to be attached to Form 2303)
10 Pay the registration fee and documentary stamp taxes (DST) at the AAB 1 day see procedure details
11 Obtain the authority to print receipts and invoices from the BIR 1 day no charge
12 Print receipts and invoices at the print shop 7 days PHP 3,500
13 Have books of accounts and Printer’s Certificate of Delivery (PCD) stamped by the BIR 1 day no charge
14 Register with the Social Security System (SSS) 7 days no charge
15 Register with the Philippine Health Insurance Company (PhilHealth) 1 day no charge
* 16 Register with Home Development Mutual Fund (Pag-ibig) 1 day (simultaneous with previous procedure) no charge
* Takes place simultaneously with another procedure.

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

***Last year's rankings are adjusted. They are based on 10 topics and reflect data corrections.

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