Choosing a route

EOR or your own Philippine entity?

We do both, so we have no reason to push you either way. Here is where each genuinely wins — including the cases where an EOR is the wrong answer.

The short answer

If you only need to employ people, an EOR is almost always faster and cheaper to start. If you need to trade — invoice Philippine customers, hold assets, claim incentives — you need your own entity, and no EOR can substitute for it.

Plenty of clients do both in sequence: start on an EOR, register the entity in parallel, then move staff across.

Side by side

A shaded cell marks the stronger option on that row.

Employer of Record compared with registering a Philippine entity
 Employer of RecordYour own entity
Time until someone can startDays, once terms are agreedTwo to four months through SEC, BIR and the LGU
Money down before day oneNone beyond the first invoicePaid-in capital, filing fees, professional fees
Per-head running costSalary, statutory load, plus a service feeSalary and statutory load only
Fixed overheadNone — it scales with headcountBookkeeping, audit, annual renewals regardless of headcount
Invoicing customers in the PhilippinesNot possible — the EOR is not your trading entityYes, with BIR-registered official receipts
Holding assets or signing local leasesNot in your nameYes
Who carries labour-law exposureThe EORYou
Brand on the employment contractOurs, not yoursYours
Statutory filings each monthHandled for youYour responsibility, in-house or outsourced
Winding downServe notice on the service agreementFormal dissolution — months of filings and clearances
Perception with local candidatesSome candidates prefer a direct employerA registered local employer reads as more permanent
Room to grow intoComfortable to roughly 10–15 peopleNo ceiling

Choose an EOR when

  • You are hiring fewer than about ten people and want to start now.
  • You will not invoice Philippine customers or hold local assets.
  • You want to validate the market before committing capital.
  • Your timeline is set by a client win or project date, not by paperwork.
  • You would rather someone else carry the labour-law exposure.
  • You need people working while your entity registration is in progress.

Register your own entity when

  • You will sell to Philippine customers and must issue local receipts.
  • Headcount is heading past ten to fifteen and will keep climbing.
  • You need to hold assets, sign leases, or import goods in your own name.
  • You want your own brand on employment contracts and offer letters.
  • You are pursuing PEZA or BOI incentives, which require your own entity.
  • The Philippines is a committed long-term market, not an experiment.

Not sure which fits?

Tell us the headcount you are planning, whether you will invoice locally, and your timeline. We will tell you which route we would actually recommend — including when that means not using our EOR.