How to Setup a Remote Office in the Philippines

If you want to have a remote team in the Philippines, the most common legal pathway is to register a local company. But what if your goal isn’t to sell in the Philippines, but simply to build a support team?

The process of registering a company involves significant costs and ongoing administrative burdens that are generally too steep for a business that just wants to hire.

This is why a ‘remote hub’ model, aka remote office, has become a practical alternative. It allows you to build a team in a dedicated workspace, with all staff employed compliantly on your behalf, without the need to incorporate a local entity, says Jillian Ongsip, Head of Sales at Recruitgo.

This article explains how this model works, breaking down the structure, benefits, and steps to get your team on the ground in the Philippines quickly and safely.

What is a Remote Office in the Philippines?

To have a remote team in the Philippines in compliance with local laws, you need to have two handle two aspects; hiring employees, and office space. However, you cannot legally hire employees or sign a commercial office lease without a registered local entity.

To solve this challenge, a remote office combines the legal employment of your team with a fully serviced physical workspace.

This model has two core components that work together:

1. Employer of Record (EOR): An EOR is a local partner such as Recruitgo that becomes the official, legal employer for your staff in the Philippines. The EOR handles all the HR, payroll, tax, and compliance responsibilities, including employment contracts and mandatory government contributions (SSS, PhilHealth, Pag-IBIG). This shields you from legal and administrative responsibilities.
2. The Physical Workspace (Remote Hub): In addition to legal employment, Recruitgo secures and manages a physical office space on your behalf. This can be a private, branded office for your team or a flexible co-working space. This allows you to have a physical address and a dedicated place for your team to collaborate.

With this combined solution, you get the benefits of a local presence without the complications.

Key Benefits of the Remote Office in the Philippines

For foreign companies, this approach offers the structure, focus, and collaboration of a traditional office, with the speed and flexibility of a remote hiring model. Let’s take a look at some of the benefits:

• Fast Market Entry: You can have a fully operational team and office in a matter of weeks, instead of the months it can take to register a new company.
• Reduced Cost and Commitment: You avoid the significant upfront capital requirements (often up to $200,000 USD) and the ongoing costs associated with managing a local subsidiary.
• Full Compliance Assurance: The EOR ensures you are fully compliant with Philippine labor laws, tax regulations, and statutory contributions, mitigating the risk of penalties from misclassifying workers.
• Flexibility and Scalability: This model allows you to easily scale your team up or down and adjust your office space as your business needs change, without complex legal restructuring.

Who is This Model For?

Remote office model is particularly suitable if you:

• Run a foreign startup or SME and want to test the Philippine market before committing to a full-scale subsidiary.
• Are expanding your global team and need a local base of operations in Southeast Asia.
• Want to upgrade from hiring freelancers to employing a loyal, full-time team.
• Need a physical office and local support system without the legal complexity of incorporation.

How to Set Up Your Remote Office in the Philippines

With RecruitGo as your local partner, you get a complete solution to launch your remote office quickly and compliantly. Here’s how we help you set up and manage your remote team in the Philippines”

1: Aligning on Your Requirements

We start by understanding your business needs, including the key roles you need, your preferred office location, and the type of workspace that fits your team.

2: Hiring Your Team through EOR

Once your needs are defined, Recruitgo can begin the hiring process. Our recruitment experts source and screen talent or onboard your pre-identified hires under our compliant EOR structure, issuing local employment contracts on your behalf.

3: Setting Up the Remote Hub (Office)

While your team is being onboarded, our team will secure and set up your physical office space. This includes leasing the space, arranging furniture, setting up internet and utilities, and ensuring the workspace is ready for your team.

4: Managing Payroll, Benefits, and Compliance

We handle all monthly payroll, government-mandated contributions (SSS, PhilHealth, Pag-IBIG), tax filings, and benefits administration. Moreover, we provide continuous HR and administrative support to help you scale your team and grow your business.

Ready to build your remote team in the Philippines? Reach out to our experts by filling out the form below.

Frequently asked questions

it is legal and common to hire Filipino workers through an Employer of Record (EOR) service. The EOR acts as the legal in-country employer, making the arrangement fully compliant with Philippine labor law. Hiring workers directly as “independent contractors” is also an option, but it carries a significant risk of employee misclassification.

The key difference between an employee and a contractor under Philippine law is the level of control and integration. Employees follow set schedules, use company tools, and report to a manager. Contractors work independently on a project basis. If you treat a contractor like an employee, you risk misclassification.

Remote workers hired as formal employees (e.g., through an EOR) are entitled to overtime pay for work performed beyond their regular hours, as stipulated by the Philippine Labor Code.

Costs vary by role and experience. Entry-level administrative roles typically range from USD 400 to 700 per month, while mid-level professionals like developers may earn USD 1,000 to 2,500 or more. Total employer costs include salary, mandatory contributions, taxes, and any EOR service fees.

You can talk to our team to understand the exact costs depending on the roles and skills you need.