Philippines / Business registration / Certificate of Authority to Engage in Business (RA 7042)

Certificate of Authority to Engage in Business (RA 7042)

A foreign national cannot simply register a business name and start trading. The Certificate of Authority to Engage in Business under the Foreign Investments Act is the document that authorises a non-Filipino sole proprietorship.

The CAEB costs ₱5,530: a ₱5,000 registration fee, a ₱500 filing fee and ₱30 documentary stamp tax, per the DTI schedule published in the BOI cost of doing business document. It sits on top of the business name registration, not instead of it.

What the government charges

Item	Amount
Registration fee DTI	₱5,000
Filing fee DTI	₱500
Documentary stamp tax DTI	₱30
Total government fees	₱5,530

Total ₱5,530, in addition to the business name fee for the territorial scope you choose.

Who needs this

A foreign national registering a sole proprietorship in the Philippines.

Who does not

Filipino citizens, who need only the business name.
Corporations and partnerships, which go through the SEC and the foreign investment framework there.

How it is done

Hold a valid ACR I-CardThe DTI requires the ACR and its certificate of registration before issuing the CAEB to a foreign applicant.
Register the business name firstThe CAEB attaches to a registered name.
File the CAEB₱5,530. The capital and the activity must sit outside the negative list.
Then BIR, then the city₱30 at the BIR, then the Mayor's Permit.

Deadline and what happens if you miss it

The CAEB follows the business name and its renewal cycle. Letting the business name lapse puts the authority behind it in question, which is why the two are renewed together.

Why files get refused at the counter

An activity on the foreign investment negative list, in which case the structure has to change, not the paperwork.
An ACR that is expired at the time of filing.
A capital declaration inconsistent with the bank evidence.

Who does what

You

Confirm the activity is open to foreign ownership at your percentage.

LPP

Check the activity against the negative list before any fee is paid, because that check is what decides whether the whole structure works.

Accredited partner

Files the CAEB and the business name together.

Have this filed without the guesswork

Send the file to us. We confirm the current fee with the agency, prepare the documents, and tell you in writing what is missing before anything is submitted.

Start this case See our fees

Sources

BOI, 2026 Cost of Doing Business, DTI section: https://boi.gov.ph/wp-content/uploads/2026/03/2026-Cost-of-Doing-Business_11March2026.pdf
R.A. 7042, Foreign Investments Act: https://lawphil.net/statutes/repacts/ra1991/ra_7042_1991.html

Last verified against the issuing agency on 2026-10-24. If an agency changes a fee or a deadline after that date, this page is out of date and we correct it before quoting.