Philippines

Ease of Doing Business in

Philippines

This page summarizes Doing Business 2014 data for Philippines. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region East Asia & Pacific
Income Category Lower middle income
Population 96,706,764
GNI Per Capita (US$) 2,470
City covered Quezon city
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
108 133 down 25

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Improvement in DTF** (% points)
60.08 55.06 down 5.02
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform 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 2014 Rank 170 DB 2013 Rank*** 166 Change in Rank down-4
DB 2014 DTF** (% points) 65.00 DB 2013 DTF** (% points) 64.70 Improvement in DTF** (% points) up0.30

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)
15 7 5

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)
35.0 37.8 11.1

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)
18.7 29.8 3.6

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)
4.6 293.3 10.4
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 Notarize articles of incorporation and treasurer's affidavit at the notary 1 day PHP 500
3 Register the company with the SEC and receive pre-registered Taxpayer Identification Number (TIN) 3 days see procedure details
4 Obtain barangay clearance 1 day PHP 500
5 Pay the annual community tax and obtain the community tax certificate (CTC) from the City Treasurer's Office (CTO) 1 day PHP 500
6 Obtain the business permit to operate from the BPLO 6 days see procedure details
7 Buy special books of account at bookstore 1 day PHP 400
8 Apply for Certificate of Registration (COR) and TIN at the Bureau of Internal Revenue (BIR) 2 days PHP 100 (certification fee) and PHP 15 (documentary stamp tax, in loose form to be attached to Form 2303)
9 Pay the registration fee and documentary stamp taxes (DST) at the AAB 1 day see procedure details
10 Obtain the authority to print receipts and invoices from the BIR 1 day no charge
11 Print receipts and invoices at BIR 7 days PHP 3,500
12 Have books of accounts and Printer’s Certificate of Delivery (PCD) stamped by the BIR 1 day no charge
13 Register with the Social Security System (SSS) 7 days no charge
14 Register with the Philippine Health Insurance Company (PhilHealth) 1 day no charge
* 15 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 (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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

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