Business RegistrationHow to Register a Fintech Company in the Philippines

The fintech industry in the Philippines has become a pivotal force in economic progress, enhancing financial access for millions through digital payments, peer-to-peer lending, and blockchain-driven remittances. As of October 2025, over 300 fintech firms contribute more than 2 percent to the nation’s GDP, bridging gaps for unbanked communities in far-flung areas. However, navigating the regulatory maze is a formidable challenge for entrepreneurs, as the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) enforce stringent rules under laws such as the National Payment Systems Act (RA 11127). These regulations encompass everything from e-money issuance to virtual asset services, necessitating careful planning to select a compliant corporate structure and secure licenses, which can take several months. 

This guide outlines the fintech registration process in the Philippines, detailing how to register fintech ventures and addressing the essential licensing requirements for fintechs. Whether launching a digital wallet or a lending platform, founders must master the fintech regulation framework in the Philippines to avoid penalties that could halt operations. With the BSP’s recent lifting of moratoriums on electronic money issuers and digital banks, the fintech business in the Philippines’ landscape offers immense potential. This article provides a roadmap for registering a fintech company in the Philippines, with a focus on fintech incorporation in the Philippines and the requirements for a Philippine fintech license, to empower new entrants in this vibrant market.

Understanding the Regulatory Framework for Fintech Ventures in the Philippines

The Philippines’ fintech ecosystem operates under a robust regulatory structure designed to foster innovation while ensuring consumer protection and financial stability, primarily overseen by the BSP and SEC. Compliance is non-negotiable for any fintech startup in the Philippines aiming for legitimacy and longevity. Key elements include:

• BSP Authority: Governed by its 1949 charter and the General Banking Law of 2000, the BSP regulates payment systems, digital banks, and e-money issuers via circulars like No. 1049 for payment system operators and No. 1105 for digital banks. Entities processing peso transactions, such as e-wallets or gateways, must register with the BSP.
• SEC Oversight: The SEC regulates investment-focused fintechs, such as crowdfunding and lending platforms, under Republic Act No. 9474, mandating disclosures to safeguard investors.
• Other Regulatory Bodies: The Department of Information and Communications Technology (DICT) enforces cybersecurity under the Data Privacy Act of 2012, while the Anti-Money Laundering Council (AMLC) requires customer due diligence and transaction reporting to curb financial crimes.
• Recent Updates: The BSP’s 2024 circular on merchant payment acceptance mandates interoperability through the National QR Code Standard, affecting startups from the outset. The Fintech Innovation Office offers sandboxes for 12-month testing with provisional waivers.
• Non-Compliance Risks: Violations incur fines up to PHP 1 million or operational suspensions, as seen in 2024 crackdowns on unlicensed virtual asset providers. Budget PHP 50,000–200,000 for professional fees to manage filings.

This framework fuels the sector’s 25 percent annual growth, ranking the Philippines as Southeast Asia’s third-largest fintech hub. Founders must evaluate their business model—whether it involves payments, lending, or blockchain—to identify the required approvals, with timelines ranging from two weeks for SEC filings to six months for BSP licenses.

Selecting the Ideal Corporate Structure for Your Fintech Enterprise

Choosing the correct business entity is an essential step in the fintech company registration process, as it shapes liability, taxation, and growth potential. The structure must comply with the fintech law in the Philippines and align with strategic objectives. Key considerations include:

• Domestic Corporation: Favored under the Revised Corporation Code of 2019 for limited liability and perpetual existence. Requires five resident incorporators and a minimum capital of PHP 5,000, although digital banks require PHP 1 billion.
• Foreign Ownership Limits: The Foreign Investments Act permits 100 percent foreign ownership for export-oriented fintechs; however, payment and lending services are restricted to a 40 percent foreign stake, requiring local partners.
• Alternative Structures: Partnerships carry unlimited liability, making them unsuitable for high-risk fintechs. Sole proprietorships are ineligible for BSP licenses and expose personal assets.
• Tax and Funding Advantages: Corporations benefit from a 20-25 percent corporate income tax rate, compared to 30 percent for proprietorships, with VAT exemptions for digital services under the TRAIN Law. Corporations also support equity raises, which are vital for fintech startup funding in the Philippines, with an average of PHP 100 million in 2024.
• Documentation Requirements: Prepare articles of incorporation detailing fintech activities (e.g., “digital payment solutions”) and bylaws for governance. Engage legal counsel to ensure compliance with BSP and SEC standards.

SEC filings via the eSPARC portal can take days, with fees ranging from PHP 2,000 to PHP 1 million for capital of up to PHP 1 million. An incorrect structure can jeopardize license approvals, delaying launches by months. In 2024, 70 percent of fintech incorporations were corporations, reflecting the prevalence of this business model among fintech companies.

Completing SEC Registration: The Initial Step in Fintech Establishment

SEC registration transforms a fintech concept into a legal entity, enabling the acquisition of BSP licenses and the opening of bank accounts. The 2025 eSPARC portal streamlines this process, but accuracy is essential to avoid setbacks. Key steps include:

• eSECURE Account Creation: Each incorporator sets up an account, verified with government IDs, and pays a PHP 100 fee.
• Document Submission: Submit articles of incorporation, treasurer’s affidavit, and a bank certificate verifying paid-up capital. Include a name verification slip, avoiding generic terms like “fintech” for approval.
• Endorsements and Fees: Obtain Department of Trade and Industry endorsements for sole names. Fees start at PHP 2,000 for a PHP 1 million capital, plus 1/5 of 1 percent of excess.
• Post-Registration Steps: Secure a BIR tax identification number (TIN) via Form 1903 within 10 days. Obtain barangay clearance, a mayor’s permit (PHP 500–5,000), and register with SSS, PhilHealth, and Pag-IBIG for employee benefits.
• Common Challenges: Inaccurate filings caused a 15 percent rejection rate in Q1 2025. BusinessRegistrationPhilippines.com, a trusted provider, streamlines submissions, ensuring approvals within days.

This process takes 1-3 days for SEC approval, facilitating further registrations. Precise filings prevent weeks of delays, enabling startups to focus on entering the market.

Securing BSP Approvals: Essential for Fintech Operations in the Philippines

BSP licenses are required for fintechs handling financial transactions, ranging from e-wallets to digital banks, due to their rigorous capital and compliance requirements. Key steps include:

• Electronic Money Issuer (EMI) License: For e-wallets, requires PHP 50 million capital, feasibility studies, AML policies, and director fit-and-proper tests. Filed via BSP’s online portal, with 3-6 month timelines.
• Operator of Payment Systems (OPS): Payment processors register under Circular No. 1049, submitting self-assessments for a provisional certificate within three days, followed by a PHP 20,000 fee.
• Digital Bank License: Requires PHP 1 billion in capital and fully digital delivery, as per Circular No. 1105. Includes site visits, public consultations, and shareholder vetting over 3-6 months.
• Virtual Asset Service Providers (VASPs): Face a moratorium until September 2025, but expansions are permitted for existing entities. Sandbox testing under Circular No. 1153 offers waivers for pilots.
• Interoperability Requirements: Implement National QR Code Standards for seamless payments, mandatory from launch.

Non-compliance risks daily fines of PHP 500,000, but licensed fintechs achieve 40 percent higher valuations. The BSP sandbox boosts success rates to 60 percent, as demonstrated by GCash’s path to full licensing.

Addressing Compliance Obligations: From Data Privacy to Local Permits

Beyond core registrations, fintech compliance in the Philippines involves multiple agencies, requiring meticulous coordination. Key requirements include:

• Data Privacy Adherence: Register as a data controller with the National Privacy Commission under the Data Privacy Act of 2012. Submit privacy manuals and consent forms to avoid PHP 5 million fines, as seen in 2024 breaches.
• Tax Filings: Submit quarterly VAT at 12 percent with BIR, leveraging TRAIN Law exemptions. The Ease of Paying Taxes Act minimizes audit burdens.
• Local Permits: Secure fire safety and sanitary permits from local government units, with costs varying by municipality. SSS contributions at 14 percent ensure employee benefits.
• Evolving Regulations: The 2025 National AI Strategy mandates updates to AI governance, adding complexity to the field of AI. Inter-agency overlaps—SEC for securities, BSP for payments—delay 30 percent of startups.

The complexity of these requirements can overwhelm founders, potentially leading to costly errors. BusinessRegistrationPhilippines.com, a trusted provider, expertly navigates these layers, aligning AML, privacy, and local permits to streamline the fintech registration process. Their support is vital for simplifying compliance and enabling focus on business growth.

Maintaining Growth: Strategies for Fintech Success Post-Registration

After securing registrations, fintechs must sustain compliance and drive expansion to succeed. Strategic steps include:

• Risk Management Frameworks: Implement board-approved plans in accordance with BSP Circular No. 1160, conduct annual AML audits, and report suspicious transactions to the AMLC within 24 hours.
• Strategic Partnerships: Collaborate with banks for liquidity under the 2024 open banking framework. Monitor transaction volumes to adjust capital, with EMIs maintaining PHP 25 million buffers.
• Innovation and Engagement: Leverage BSP sandboxes for pilot projects, then scale deployments. Financial literacy initiatives enhance reputation amid 2025’s focus on consumer protection.
• Cybersecurity Measures: With cyber threats up 20 percent in 2024, pursue ISO 27001 certifications. Annual renewals cost PHP 10,000 to PHP 50,000.

Compliant fintechs experience 50 percent lower churn rates, with successes like Maya highlighting the importance of proactive governance as critical to longevity in the Philippine fintech ecosystem.

Key Takeaways

Establishing a fintech startup in the Philippines combines opportunity with rigorous compliance, from SEC registration to BSP approvals, laying the foundation for transformative financial solutions. With the sector projected to reach PHP 1 trillion in transactions by 2030, following this fintech registration guide in the Philippines ensures startups are well-positioned for success. The evolving regulatory landscape, with sandbox flexibilities and lifted moratoriums, supports innovative ventures. Entrepreneurs who navigate these steps—entity selection, registrations, licenses, and ongoing compliance—will not only launch but excel, contributing to a digitally inclusive Philippines.

Is Assistance Available? 

Yes, BusinessRegistrationPhilippines.com provides expert guidance to streamline the fintech business permit process in the Philippines. Our experienced team ensures compliance with Philippine digital finance regulation, transforming challenges into opportunities for your startup’s success. Reach out today to schedule an initial consultation with one of our experts. 

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