The Philippine Economic Zone Authority or PEZA offers incentives to qualified businesses who choose to operate within the PEZA Special Economic Zones to encourage investments. PEZA is one of the most professional government agencies in the Philippines known for its competency and efficiency in client transactions.
Businesses operating within PEZA ecozones are given a slew of tax incentives along with less stringent requirements in hiring foreign employees and easier foreign exchange processes like import/export.
Who may qualify for PEZA incentives?
Information Technology (IT) service export
Agro-industrial bio-fuel manufacturing
Agro-industrial export manufacturing
Economic Zone Development and Operation
Logistics and warehousing services
The process for PEZA application is simple. It begins with the submission of the application form together with the requirements to the Office of the Director General of PEZA. Upon receipt thereof, the Enterprise Regulation Department will evaluate the application and, if everything is in order, the application will then be presented to the PEZA Board for approval.
Registration requirements depend on the type of business. For example, tourism ad agro-industrial operations need to get an endorsement from relevant government agencies such as the Department of Agriculture and the Department of Tourism. Minimum paid-up capital and other documentation requirements also vary by business type.
Basic Requirements for PEZA Registration
SEC Certificate of Registration
Certificate of Authorizing the Application for Registration with PEZA
The most important requirement in this list is the Project Brief as this is where you’ll include the corporate profile, technical aspect, economic and financial aspect, and market aspect of your enterprise. What you put in here will define what kind of company you’re trying to set up and how it can positively contribute to this special economic zone.
Corporate Profile – this shall include the details of the applicant and the parent company. It should state the company history, bio-data of its principal officers, a list of any affiliated companies registered with PEZA or Board of Investments, and audited financial statements for the last 3 years. It should also include information about the number of employees and manpower required over the next 3 years and a timetable of project operations.
Technical Aspect – this shall include the details regarding:
Waste and System Disposal
Area and Utilities Requirement
List, sources, and costs of equipment and machinery
List and source of raw materials
Manufacturing Process or Service Flow
Products/Services description and application
Economic and Financial Aspect – this shall include details on the sources of financing and the initial project cost.
Market Aspect – this shall include details including:
Projected volume and value of export sales for 3 years
Percentage of export over domestic sales
Areas/countries of export markets
PEZA registration application is fairly simple as long as you have prepared the requirements beforehand. Usual fees you may encounter when filing include an application fee (of around 3,600 pesos), registration fee (for around 6,000 pesos), and DENR filing fee (of around 4,000 pesos).