Manpower / Recruitment Agency Business Guide (Philippines)
Clear, actionable step-by-step guide with typical fees and key documents to start a manpower / recruitment (private employment) agency in the Philippines, including notes for both domestic and overseas placement.
What you'll learn in this manpower agency guide
This manpower / recruitment agency business guide explains the difference between domestic recruitment (DOLE Private Employment Agency or PEA) and overseas recruitment (DMW/POEA-type), summarizes typical capital and bond requirements, and walks you through the basic permit and licensing flow.
For related foundations, you may also want to read our SEC Partnership/Corporation Registration Guide, BIR Business Registration Guide, and SSS/PhilHealth/Pag-IBIG Employer Registration Guide.
Para ma-planong mabuti ang capital, bonds, at operating expenses, puwede mong gamitin ang Budget Calculator para sa capital at buwanang gastos, ang Task Management System para sa reporting at license renewals, at ang Fieldperson Location Tracking kung may on-ground recruiters o field staff ka.
Quick overview (high-level)
- Decide if you will do domestic recruitment only or also overseas placement.
- Domestic agencies follow DOLE PEA rules and regional implementing guidelines.
- Overseas recruiters must secure a DMW/POEA license with higher capital and bond requirements.
Step-by-step checklist (documents & typical fees)
1) Choose legal structure & reserve business name
Decide whether to register as a sole proprietorship (via DTI) or as a partnership/corporation (via SEC). Recruitment agencies are often structured as corporations for governance and capital reasons.
Estimated cost:
- DTI business name registration: roughly ₱200–₱500, depending on scope.
- SEC registration fees: depend on authorized capital; expect several thousand pesos for many small corporations.
2) Prepare company documents & open bank account
For corporations, you will need Articles of Incorporation, By-laws, Treasurer’s Affidavit, specimen signatures, and a bank certificate of deposit showing your paid-in capital.
For sole proprietors, keep your DTI certificate, IDs, and proof of address/lease handy. In both cases, open a corporate bank account where capital is deposited — DOLE and DMW/POEA may require a bank certificate.
3) Secure DOLE Private Employment Agency (PEA) license — domestic
If you handle domestic placement only, you must apply for a DOLE PEA license. DOLE regional offices use checklists based on Department Orders (e.g., DO No. 217) and regional rules.
Typical documents requested (summary):
- Completed DOLE PEA application form and checklist.
- DTI/SEC registration, AOI/By-laws (for corporations).
- Mayor’s permit and Barangay clearance.
- Lease contract and office layout or floor plan.
- Evidence of paid-up capital (e.g., bank certificate).
- NBI/Police clearances and bio-data of owners and key officers.
- Financial documents and notarized affidavits/undertakings.
Capital and fees (domestic PEA):
Many regional checklists mention a minimum paid-up capital of around ₱1,000,000 (confirm with your DOLE regional office). License fees themselves are often modest (some regions quote fees around ₱1,000 or similar), but always rely on the latest schedule from your region.
4) If doing OVERSEAS placements: DMW/POEA license & bonds
If you want to place workers overseas, you must apply for a DMW/POEA recruitment license. Requirements are much stricter than for domestic-only agencies.
Typical items (examples from public sources; confirm current rules):
- Higher paid-up capital, often around ₱5,000,000.
- Surety/cash bonds and bank escrow accounts, with amounts in the hundreds of thousands to millions of pesos.
- Application fees and license fees — some sources cite application fees like ₱10,000–₱50,000 plus license fees.
- Pre-licensing orientation, office inspection, and panel interview by DMW/POEA.
Because policies and amounts change regularly, always consult the current DMW/POEA licensing guidelines and fee schedules before committing capital.
5) Register with tax & local agencies
BIR:
Register with the Bureau of Internal Revenue (often via Form 1903 for corporations/partnerships). Obtain your TIN and Certificate of Registration, register books of accounts, and secure Authority to Print receipts or use an accredited e-invoicing platform.
LGU (Barangay & Mayor’s permit):
Apply for Barangay Clearance and Mayor’s/Business Permit at the city/municipality where your office is located. Submit SEC/DTI documents, lease contract, IDs, and other LGU requirements. Fees vary by LGU and capital.
SSS / PhilHealth / Pag-IBIG:
Register as an employer and remit contributions for your office staff. Initial setup fees are minimal; the main cost is monthly government contributions.
6) Office & operational requirements
DOLE and DMW/POEA check that you have a proper office with minimum floor area, signage, furniture, and secure storage for applicant records.
Expect to provide:
- Lease contract or proof of ownership of office space.
- Office layout/floor plan and photos (interior and exterior signage).
- Applicant record system (physical or digital) with secure storage.
- NBI/Police clearances and bio-data of owners/directors and key officers.
7) Additional compliance & onboarding
Once licensed, you must maintain compliance with DOLE and, if applicable, DMW/POEA:
- Use standard employment contracts that follow DOLE/DMW templates.
- Set up applicant screening and selection procedures.
- Implement data privacy controls in line with the Data Privacy Act (PDPA).
- Prepare to submit regular reports and renewals as required by DOLE/DMW.
Typical cost summary (ballpark — confirm locally)
| Item | Approximate range / note |
|---|---|
| Company registration (SEC / DTI) | Around ₱200–₱10,000, depending on structure and authorized capital. |
| DOLE PEA license (domestic) | License fees modest; capital requirement often around ₱1,000,000 (regional variations). |
| DMW/POEA license (overseas) | Application & license fees from roughly ₱10,000 up to ₱50,000+; paid-up capital commonly ₱5,000,000 plus bonds/escrow in the hundreds of thousands to millions. |
| Office setup, legal/notary, IT, payroll, marketing | Highly variable; often in the ₱50,000–₱500,000+ range depending on scale and location. |
| Mayor’s permit, local taxes, BIR/ORs, books | A few thousand up to tens of thousands depending on LGU and declared capital. |
Key documents you’ll almost certainly need
- SEC or DTI certificates; Articles of Incorporation and By-laws (if corporation).
- Mayor’s permit and Barangay clearance.
- Lease contract or proof of office ownership; office layout and signage photos.
- NBI/Police clearances of owners/directors; IDs and biodata of officers.
- Bank certificate proving paid-up capital or deposit.
- Notarized affidavits/undertakings (e.g., not charging applicants illegal fees).
- BIR registration documents and employer registration proof for SSS/PhilHealth/Pag-IBIG.
Practical tips & next actions
- Decide early whether you will stay with domestic placements only or also pursue overseas recruitment — overseas licensing requires much higher capital and bonds.
- Visit or call your DOLE regional office and check the DMW/POEA licensing pages to get the latest checklists and fee schedules (they change, and there may be regional variations).
- Assemble company documents (SEC/DTI, lease, bank certificate, NBI clearances) and prepare required notarized affidavits.
- Ask your City/Municipal Business Permit office for an estimate of Mayor’s permit and local business taxes so you can set a realistic starting budget.
Important legal note: paid-up capital requirements, bond amounts, and fees change over time. Always confirm current figures with DOLE and DMW/POEA (and review their official publications) before committing funds.