Starting a Software Development Agency in the Philippines: Complete Business Guide
Capital Requirements
Equipment (computers, monitors): ₱200,000 – ₱500,000
Software Licenses: ₱50,000 – ₱150,000
Office Setup: ₱50,000 – ₱200,000
Initial Salaries (3 devs, 2 months): ₱300,000 – ₱600,000
Marketing & Website: ₱50,000 – ₱100,000
TOTAL: ₱680,000 – ₱1,600,000
Revenue Potential
Hourly rates (international): $25-75/hour
Hourly rates (local): ₱800-2,500/hour
Gross Margin: 60-80%
Monthly Revenue (5-person team): ₱500,000 – ₱1,500,000
ROI: 6-12 months
Tax Benefits
- Corporate Tax: 25% (20% for small corporations)
- Export services: 0% VAT
- PEZA Registration: 4-7 years Income Tax Holiday
