Can I Register My Remote or Online Business with PEZA?
TL;DR (Too Long; Didn’t Read)
Yes, you can register your remote or online business with PEZA, especially if it falls under IT-enabled services or BPO operations. PEZA has adapted to support digital companies, provided they meet specific qualifications and infrastructure requirements. Having a physical presence in a PEZA-accredited building or IT park remains crucial.
Summary Answer
Many entrepreneurs and business owners ask: Can I register my remote or online business with PEZA? The short answer is yes, under certain conditions. If your company falls within the IT-enabled service sector, such as software development, BPO, data analytics, or digital services, PEZA registration is possible and can offer significant tax and operational benefits.
However, PEZA does require a physical facility within a PEZA-accredited IT building or zone, even for online or remote-first businesses. Understanding the nuances of PEZA registration for online business models is key to determining your eligibility.
Why PEZA Matters for Online and Remote Businesses
The Philippine Economic Zone Authority (PEZA) was established to promote investments and support businesses engaged in export-oriented activities. With the rise of remote work and digital operations, PEZA has widened its scope to include IT service export companies, making it relevant for:
- BPO companies
- Software development firms
- Digital marketing agencies
- Data processing and analytics companies
- Shared service centers
If your business is engaged in these fields and exports at least 70% of its services, PEZA registration can provide significant tax and non-tax incentives.
PEZA Registration for Online Business: Is It Possible?
Yes—PEZA registration for digital companies is possible if your operations meet the following conditions:
PEZA Requirements:
- Your business must fall under IT-enabled services (e.g., BPO, software, digital services).
- Your business must be exporting at least 70% of its output.
- You must locate your business in a PEZA-registered IT park or building.
This means that home-based or virtual businesses still need to establish a physical office within a PEZA-accredited zone to qualify.
What Kind of Online Businesses Are Eligible?
Here are the types of remote or online businesses that may qualify for PEZA registration:
- IT-BPM companies (e.g., call centers, virtual assistants)
- Software development firms
- E-commerce support services (e.g., fulfillment, back-office services)
- Digital marketing agencies
- Game and app development companies
- Content production and media outsourcing
If you operate a service-based business catering to international clients, you have a strong chance of meeting PEZA’s criteria.
Physical Presence Still Matters
One of the biggest pain points for remote-first companies is the requirement for a physical office. PEZA registration is tied to geographic zones and buildings approved by the agency.
This raises the question: Can a home-based business register with PEZA?
Unfortunately, not directly. PEZA still requires:
- A lease contract in a PEZA-registered IT building.
- Physical infrastructure like data and IT systems, for compliance.
But Here’s a Workaround:
- You can set up a satellite office in a PEZA IT zone.
- Use a virtual office within a PEZA zone as a registered business address (depending on current policy allowances).
This allows remote and hybrid companies to retain flexible work arrangements while still qualifying for PEZA.
Benefits of Registering a Remote Business with PEZA
PEZA registration can significantly benefit digital businesses:
Tax Incentives
- Income Tax Holiday (ITH) for 4-7 years
- 5% special tax on gross income in lieu of all national and local taxes (after ITH)
- Zero VAT on local purchases
Operational Perks
- Simplified import/export procedures
- Customs support and fast-tracking
- Access to PEZA help desks and liaisons
Competitive Edge
- Increased credibility
- Attraction for foreign clients and partners
- Favorable terms for growth-stage digital firms
Steps to Register Your Online Business with PEZA
Here’s a step-by-step guide to registering your remote or online business with PEZA:
- Check Eligibility
Confirm your business qualifies under PEZA’s list of IT-enabled services. - Secure a PEZA-accredited Location
Sign a lease in an IT park or building accredited by PEZA. - Prepare Application Requirements
Include:- Business plan
- SEC registration and articles of incorporation
- List of activities and employees
- Submit Your Application to PEZA
- Attend PEZA Board Evaluation
Once approved, wait for the issuance of the PEZA Certificate of Registration. - Comply with Post-Approval Requirements
Register with BIR, LGU, etc., while enjoying PEZA incentives.
PEZA vs BOI: Which One is Better for Remote Businesses?
Both agencies offer investment perks, but there are differences:
| Criteria | PEZA | BOI |
| Physical Location Required | Yes (PEZA-accredited zone) | No specific location needed |
| Export Requirement | Yes (70%) | Optional, based on industry |
| Ideal For | Exporters, IT-BPM | SMEs, local manufacturers |
| Best For Remote Businesses? | Yes (if BPO/IT service) | Yes (if not location-tied) |
Tip: If you’re not ready for a PEZA location, BOI registration might be a better first step.
Final Thoughts
PEZA registration for remote or online businesses is possible—but not without conditions. If your business exports services, operates in IT or digital sectors, and you’re willing to maintain a physical office in a PEZA zone, it can be well worth the effort.
If you’re unsure whether your business qualifies, it’s best to consult PEZA experts or business registration professionals to explore the best strategy.
Need help registering your business with PEZA? Contact us today to get expert guidance and support.
Frequently Asked Questions (FAQ)
Can a remote or online business register with PEZA?
Yes, if it operates in an IT-enabled export industry and sets up a physical office in a PEZA-accredited location.
What types of online businesses are eligible for PEZA registration?
BPOs, software firms, digital agencies, and similar service-based businesses that cater to international clients.
Does PEZA require a physical office space or facility?
Yes, businesses must be located in a PEZA-registered building or IT park.
Are IT and BPO companies eligible for PEZA incentives?
Absolutely. PEZA was specifically created to attract IT and BPO investors.
Can a home-based business qualify for PEZA registration?
Not directly. A physical office in a PEZA zone is required, though hybrid setups are possible.
What are the requirements for registering a digital business with PEZA?
SEC registration, business plan, lease in a PEZA zone, list of employees, and export commitment.
Is a virtual office address accepted by PEZA?
In some cases, yes—but it must be within a PEZA-accredited facility and meet infrastructure standards.
What are the benefits of PEZA registration for online or remote businesses?
Tax holidays, simplified customs, and global credibility are just a few of the key advantages.
What’s the difference between PEZA and BOI for online businesses?
PEZA requires location and export compliance; BOI is more flexible for SMEs and non-exporters.
How can freelancers or solopreneurs qualify under PEZA?
They usually need to incorporate a business, register with the SEC, and meet export and location requirements.