How to Start an Online Business in the Philippines: Complete 2025 Guide

The Philippines’ digital economy hit PHP 2.25 trillion in 2024, making up 8.5% of the country’s GDP.¹ And, with 97.5 million active internet users,² there’s never been a better time to launch an online business in the Philippines.

This guide walks you through everything you need to know about starting an online business in the Philippines. You’ll learn how to register your business, set up your finances, find suppliers, and build your online presence. We’ll also show you how a Wise Business account can simplify international payments by giving you access to multiple currencies, local account details, transparent fees, and the mid-market exchange rate.

Table of contents
What is an online business? Why start an online business? 9 essential steps to get your online business started Key challenges for online businesses and how to overcome them

What is an online business?

Put simply, an online business sells products or services to customers via the internet. Unlike traditional brick-and-mortar shops, online businesses have lower startup costs and can reach customers anywhere in the world. You might run an e-commerce store selling physical products, offer digital services like graphic design, or create subscription-based content platforms.

The beauty of an online business is scalability. Once you’ve set up your systems, you can automate many processes and serve customers 24/7 without being physically present.

Why start an online business?

Low barrier to entry: Launch with minimal capital compared to opening a physical shop. No need to pay for commercial rent, expensive fixtures, or large inventory upfront.

Work on your own terms: Run your business from anywhere with an internet connection. Set your own hours and work around your life, not the other way around.

Global reach: Your potential customer base isn’t limited to your neighbourhood. With the right approach, you can sell to customers across the Philippines and beyond.

9 essential steps to get your online business started

1. Define and understand your target market

Before spending a single peso, you need to know exactly who you’re selling to. Start by identifying your ideal customer’s demographics, behaviours, and pain points.

Dive into online communities where your potential customers hang out. Browse Reddit threads, Facebook groups, and industry forums to see what people actually need.

• What questions are they asking?
• What problems keep coming up?

Look at your competitors too.

• How are they positioning themselves?
• What do their customers love about them?
• More importantly, what are they complaining about?

These gaps in the market are your opportunities - here you can create something people actually want rather than something you think they want.

2. Identify your product or service

Find a product or service with good demand but not so much competition that you’ll struggle to stand out. Use Google Keyword Planner to search for business ideas with high monthly searches and manageable competition.

Pick something that aligns with your interests and expertise. You’ll be working on this every day, so choose something you can stay passionate about even when things get tough, and something where your extensive knowledge will give you a much-needed advantage.

3. Determine your business’s profitability

Run a feasibility study before going all in. Be honest about your financial situation and what you can realistically invest. Look at the materials, equipment, and manpower you’ll need. Calculate your costs and work out realistic pricing.

Test whether your target market is willing and able to pay what you need to charge. Although people might want a particular product, there will probably be a limit to how much they’ll pay for it. Run small tests if possible before committing fully.

Think about your competitive advantage. Why would someone buy from you instead of the dozens of other options available online? Price? Quality? Functionality?

4. Write a business plan

Writing a business plan is about marking out the route to sustainability. Write down your products or services, who you’re selling to, how you’ll reach them, and how you’ll make money.

Banks and government agencies often require a business plan when you apply for loans or permits. More immediately, the process of writing one forces you to think through the details of how your business will actually work.

Your plan should cover:

• Your value proposition
• Market analysis
• Marketing strategy
• Operations plan
• Financial projections

Your plan will likely change as your business grows.

5. Register your online business

Online businesses in the Philippines follow the same registration requirements as traditional businesses. Getting properly registered protects you legally and makes your business more credible to customers.

Department of Trade and Industry (DTI): If you’re operating as a sole proprietor, register your business name with DTI. Registration costs PHP 230 to PHP 2,030, depending on whether you want city, regional, or nationwide coverage.³ The process often completes in one day.

Securities and Exchange Commission (SEC): Partnerships and corporations register with SEC instead. Regular registration takes 5-15 business days, but the online service completes in one day - both provide limited liability protection. Foreign ownership is allowed under specific conditions - export-oriented e-commerce businesses can be 100% foreign-owned, while businesses serving the domestic market need at least USD 200,000 in paid-up capital.⁴

Mayor's Permit: Get your business permit from your local government unit. You’ll need your DTI or SEC certificate, barangay business clearance, proof of address (contract of lease or property title), location sketch or photos, and community tax certificate.⁵

Bureau of Internal Revenue (BIR): Register for your Taxpayer Identification Number (TIN). Sole proprietors use Form 1901, while corporations and partnerships use Form 1903.⁶ Note that new regulations under Revenue Regulation No. 3-2025 have stricter requirements for online businesses, including mandatory VAT registration for qualifying businesses.⁷

6. Set up your business finances

Getting your finances right from the start makes growth easier further down the line. Open a corporate bank account to keep business and personal expenses separate. Traditional banks typically require PHP 5,000 to PHP 100,000 as an initial deposit and ongoing minimum balance requirements.

But many digital-native alternatives offer lower barriers to entry, with no minimum balance and no monthly fees.

Consider using online payment methods like mobile wallets and payment links to make it convenient for customers to pay you. The more payment options you offer, the fewer barriers there are to completing a sale.

Obtaining a business credit card can be a useful financial management tool for handling expenses and building business credit.

If you’re dealing with international transactions, managing multiple currencies becomes crucial. This is where having the right financial tools makes a real difference to your bottom line.

💡If you're a business in the Philippines trying to go global, you've probably hit a wall of confusing foreign exchange fees when collecting payments from international customers. Wise Business helps you cut through all that complexity—be it a local bank transfer or a wire transfer. By simplifying how you receive payments, you're free to pursue what matters—growing a local brand with global sights.

• Obtain account details to receive payments in USD, EUR, GBP, SGD, HKD and more for a one-time fee of 1,400 PHP.
• Simply share your account details with customers or add them to invoices.
• Zero fees when you get paid via ACH, FAST, InstaPay/PESONet, & other local transfers.
• Full fee transparency when clients pay you via Wire / SWIFT.
• Hold, send, and convert money at the mid-market rate in one account.
• Accept payments from customers and payment service providers (PSPs) like Stripe and Amazon.

➡️Get started with Wise Business today

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7. Look for suppliers

Finding reliable suppliers can make or break your business. Start by asking for recommendations from people in your network who run similar businesses. Personal referrals often lead to the most trustworthy connections.

Search online for suppliers or attend virtual trade events in your industry. Use industry-specific directories to discover potential partners. If you're considering dropshipping, research platforms that offer wide product ranges with varying minimum order requirements.

When dealing with overseas suppliers, pay attention to payment costs and the currencies in question.

Traditional banks tend to add hidden exchange rate markups when you convert PHP to foreign currencies. These markups typically range from 1-3% on top of any stated fees, eating into your profit margins with every order.

But there’s an alternative: Wise Business gives you the mid-market exchange rate - the same one you see on Google - with only a small, transparent conversion fee starting from 0.57%. No hidden markups, no surprises. When you’re placing regular orders with international suppliers, these savings add up quickly.

8. Establish your delivery methods

Handling logistics well can give you an invaluable competitive advantage. Fast, reliable delivery turns first-time buyers into repeat customers.

The Philippines on-demand logistics (or simply fast delivery) market is set to reach USD 5.2 billion in 2026.⁸ Demand for e-commerce accounts for 30% of the market, and food delivery for 50%.⁸

You have several options to consider:

• Traditional courier services offer established nationwide networks and reliability.
• On-demand delivery platforms work well for quick, same-day deliveries.
• Some platforms integrate delivery with ride-hailing services, giving you flexible options depending on your needs.

Look for services that offer real-time GPS tracking so you and your customers can monitor deliveries. Consider what payment options customers prefer too - according to foodpanda, 51% of orders still use cash on delivery, showing that customers want flexibility in how they pay and receive their purchases.⁹

9. Build your online presence

Your online presence is often the first impression potential customers get of your business.

Set up your sales channel first. You might build an e-commerce website, sell through marketplaces like Shopee or Lazada, or even start with social media platforms.

If you’re building a website, choose a domain name that’s easy to remember and reflects your business. Website development costs vary widely - from PHP 50,000 for a basic site to PHP 500,000 for a full e-commerce site. Factor in ongoing costs too: domain registration (PHP 1,175 to PHP 3,525 annually), web hosting (PHP 1,200 to PHP 6,000 annually), and maintenance (PHP 1,000 to PHP 2,000 monthly).¹⁰

Remember that 55.9% of all online sales in the Philippines happen on mobile phones, so your site must work flawlessly on smartphones.¹¹

Build your visibility through content marketing, search engine optimisation, and social media. Encourage satisfied customers to leave reviews - word of mouth remains the most effective form of advertising, even in the digital age.

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Key challenges for online businesses and how to overcome them

Market competition

The online market is crowded. Standing out requires focusing on what makes you different. Maybe it’s superior customer service, exclusive products, or an innovative solution to a common problem.

Target niche audiences with tailored messaging rather than trying to appeal to everyone. A small, loyal customer base often generates more revenue than a large, indifferent one.

Managing finances

Cash flow management trips up many new entrepreneurs. Monitor your spending daily, weekly, and monthly to catch problems early. Track which expenses generate returns and which ones don’t.

Keep business and personal finances completely separate. Mixing them makes it nearly impossible to understand how your business is actually performing. Having a dedicated business account - whether traditional or digital - is crucial for managing expenses, tracking income, and preparing for tax obligations.

Digital infrastructure limitations

Not everyone has reliable internet access. About 50% of the population lacks internet connectivity (a figure that decreases every year), and even those who are online often face slow speeds and high costs.¹² This creates a digital divide that can limit your potential customer base.

Stay inclusive by:

1. Focusing on cloud-based solutions that work across different connection speeds.
2. Keeping your website lightweight and fast-loading.
3. Optimising for mobile devices, since many access the internet primarily through their phones.
4. Offering multiple payment options.

Building customer trust

With greater e-commerce saturation comes greater visibility of complaints. Common issues with digital services include problems with refunds, defective products, and disputes with platforms. This environment makes customers naturally wary of new online businesses.

Build trust through transparency. Have clear pricing with no hidden fees. Write your return and refund policies in simple language. Provide reliable customer service that actually helps solve problems. Showcase reviews and testimonials from real customers - social proof reassures potential buyers that you’re legitimate and worth trusting with their money.

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Conclusion

The Philippine e-commerce market is booming, and there’s always room for businesses that do things well. Getting your registration sorted, setting up proper financial systems, and building a professional online presence sets you up for long-term success.

The path isn’t always straightforward. You’ll face competition, cash flow challenges, and the constant work of building customer trust. But every successful online business in the Philippines started exactly where you are now.

The key is starting with the right foundation - legal registration, smart financial management, and tools that help rather than hinder your growth.

💡Are bank accounts limited to USD, EUR, or GBP options holding back your business? With a Wise Business multi-currency account, you can access over 10 local account numbers — far more currency options than the handful most banks offer. Plus, Wise makes it easy to hold, send, receive, and exchange 40+ currencies from a single account. With the freedom to send and receive payments in more currencies globally, you can focus on what matters most: growing a local business that knows no borders.

• Obtain account details to receive payments in USD, EUR, GBP, SGD, HKD and more for a one-time fee of 1,400 PHP.
• Zero fees when you get paid via ACH, FAST, InstaPay/PESONet, & other local transfers.
• Send money to pay invoices, suppliers & contractors fast, with less fees
• Always get the mid-market rate with transparent conversion fees starting from 0.57%.
• Pay your bills and ad-hoc overseas expenses using the Wise Business card without hefty foreign transaction fees.
• Seamless integrations with popular accounting software.

➡️Get started with Wise Business today

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Sources:

1 - PSA - Philippine Digital Economy Statistics

2 - Data Reportal - 2025 Digital Market

3 - DTI - Business Name Registration

4 - Incorporation.ph - Paid-Up Capital

5 - Philippine Business Registration - Mayor's Permit

6 - BIR Forms

7 - BIR Forms Update

8 - PR Newswire - Philippines On-Demand Logistics Market

9 - Phil Biz News - Delivery and E-Commerce

10 - Spiralytics - Website Development Costs

11 - Meltwater - Social Media Statistics

12 - PSA - Household Internet Connection Statistics

Sources checked on 12th October 2025.