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There are several types of business enterprises an investor can choose from in establishing operations in the Philippines.



Sole Proprietorship is a business structure owned by an individual who has full control/authority of its own and owns all the assets, personally owes and answers all liabilities or suffers all losses but enjoys all the profits to the exclusion of others.A Sole Proprietorship must apply for a Business Name and be registered with the Department of Trade and Industry - DTI Region 2, Cagayan Valley. In the provinces, application may be filed with the extension offices of the DTI.


Under the Civil Code of the Philippines, a partnership is treated as juridical person, having a separate legal personality from that of its members. Partnerships may either be general partnerships, where the partners have unlimited liability for the debts and obligation of the partnership, or limited partnerships, where one or more general partners have unlimited liability and the limited partners have liability only up to the amount of their capital contributions. It consists of two (2) or more partners. A partnership with more than three thousand pesos ( 3,000.00) capital must register with Securities and Exchange Commission (SEC).


Corporations are juridical persons established under the Corporation Code and regulated by the Securities and Exchange Commission with a personality separate and distinct from that of its stockholders. The liability of the shareholders of a corporation is limited to the amount of their share capital. It consists of at least five (5) to fifteen (15) incorporators each of whom must hold at least one share and must be registered with the Securities and Exchange Commission (SEC). Minimum paid up capital: five thousand pesos ( 5,000.00).

A corporation can either be stock or non-stock company regardless of nationality. Such company, if 60% Filipino-40% foreign-owned, is considered a Filipino corporation; If more than 40% foreign-owned, it is considered a foreign-owned corporation.

a. Stock Corporation

This is a corporation with capital stock divided into shares and authorized to distribute to the holders of such shares dividends or allotments of the surplus profits on the basis of the shares held. 

b. Non-stock Corporation

It is a corporation organized principally for public purposes such as charitable, educational, cultural or similar purposes and does not issue shares of stock to its members.


Is a firm owned, controlled, and operated by a group of members for their own benefits. Each member contributes equity capital, and shares in the control of the firm on the basis of one-member, one-vote principle (and not in proportion to his or her equity contribution).


A cooperative is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of risks and benefits of the undertaking in accordance with the universally accepted cooperative principles.

The Cooperative Development Authority (CDA) is the lead government agency mandated by virtue of Republic Act No. 9520 (Philippine Cooperative Code of 2008) to promote the viability and growth of Philippine cooperatives. It is the only government agency that registers cooperatives.

(source: Cooperative Development Authority)


The primary objective of every cooperative is to help improve the quality of life of its members. Towards this end, the cooperative shall aim to:

Provide goods and services to its members to enable them to attain increased income, savings, investments, productivity, and purchasing power, and promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing;

  1. Provide optimum social and economic benefits to its members;
  2. Teach them efficient ways of doing things in a cooperative manner;
  3. Propagate cooperative practices and new ideas in business and management;
  4. Allow the lower income and less privileged groups to increase their ownership in the wealth of the nation; and
  5. Cooperate with the government, other cooperatives and people oriented organizations to further the attainment of any of the foregoing objectives.

An online cooperative registration is available by logging on to

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