Company Incorporation · 60/40 Corporation
Domestic Corporation registration (60% Filipino, 40% Foreign)
The classic Philippine joint structure. We set up your 60/40 corporation with the ownership and protections documented properly from day one.
About the 60/40 structure
Local majority, protected partnership
Industries on the Foreign Investment Negative List cap foreign equity, most commonly at 40%, and corporations that own land must be at least 60% Filipino. The 60/40 domestic corporation is the standard vehicle for these sectors and for ventures built around a Filipino partner’s market access and standing.
The structure only works as well as its documentation. Board composition, reserved matters and exit terms determine how much say each side truly has, and we put these in writing before registration rather than after a disagreement.
What we handle
Structure, protections, registration
A 60/40 corporation set up to hold together for the long term.
Ownership and industry analysis
We confirm what the law requires for your activity and how the 60/40 split should be structured.
Shareholder agreement and protections
Board seats, reserved matters, dividend and exit terms documented lawfully for both sides.
SEC registration
Incorporation filed and prosecuted through to your certificate.
Post-registration setup
BIR, permits, books and banking completed so the company can operate.
How it works
Timeline and milestones
The standard path for a 60/40 domestic corporation. Timeframes are typical estimates that depend on complete documents and government agency processing, not guaranteed deadlines.
Gather information and documents
Proposed corporate name with three alternatives, business purpose, principal office address, incorporators’ IDs and TINs (passport numbers for foreign nationals), capital structure and equity split.
Name verification and reservation
The proposed name is submitted through the SEC eSPARC portal for verification against existing registered names and naming guidelines, with the correct Inc. or Corp. suffix confirmed.
Incorporation documents signed
Articles of Incorporation, bylaws and Treasurer’s Affidavit prepared and signed by the incorporators, with Foreign Investment Form F-100 or F-103 where there is foreign equity. Incorporators are verified through SEC eSECURE.
Filing and payment with the SEC
The complete application is submitted through eSPARC under the applicable track, whether SEC ZERO fully digital, OneSEC or Regular Processing, and the assessed SEC filing fees are settled.
Certificate of Incorporation issued
The SEC releases a Digital Certificate of Incorporation, valid for six months, with the original released once the remaining documentary requirements are submitted. The company legally exists from this point.
Barangay clearance and business permit
Barangay Clearance secured for the principal office location, followed by the Business Permit from the Mayor’s Office covering the same address.
BIR registration
Company TIN obtained, registration fee paid, books of accounts registered and Authority to Print official receipts and invoices secured. Often run in parallel with LGU permitting.
Employer registration and bank account
SSS, PhilHealth and Pag-IBIG employer registrations completed and the corporate bank account finalized. The company is fully compliant and operational.
LGU permitting and BIR registration can often run in parallel rather than sequentially, which is typically where the total timeline is shortened.
eSPARC processing has improved in 2026: straightforward SEC filings can clear in 5-10 business days, while incomplete or inconsistent submissions restart the review clock.
Complex or foreign-owned entities can take up to 60 Days to become fully operational.
Why structure your 60/40 with ILA
Both sides protected
Agreements drafted so the partnership survives success and disagreement alike.
Lawful by design
Structures that respect the equity rules rather than papering over them.
Beyond registration
Compliance and corporate housekeeping handled by the same team afterward.
Frequently asked questions
60/40 questions, answered
Why do I need a 60/40 structure?
Because your intended activity carries a foreign equity cap under the Foreign Investment Negative List, or because the corporation will own land, which requires at least 60% Filipino ownership. We confirm whether your activity actually requires it, since many do not.
How is the foreign partner protected?
Through board representation, reserved matters, dividend policy and exit terms in a properly drafted shareholder agreement. Protections must respect the Anti-Dummy Law, which prohibits arrangements that place control beyond the foreign cap, so we structure rights that are both real and lawful.
Is the capital requirement lower than for a foreign-owned company?
Generally yes. Corporations that are at least 60% Filipino-owned follow the standard modest capital rules rather than the higher paid-in thresholds applied to foreign-owned enterprises serving the domestic market.
Structuring a venture with a Filipino partner?
Book a free consultation and we will map the structure and protections before you commit.
