Running a business in the Philippines is exciting—but it also comes with legal risks that many SMEs overlook.
One of the most common (and costly) mistakes? Relying on verbal agreements or copy-paste contracts from the internet.
If you’re serious about protecting your business, having the right contracts in place is not optional—it’s essential.
In this guide, we’ll walk you through the top 7 contracts every Filipino SME should have, plus why using generic templates can backfire.
A contract is more than just paperwork—it’s your first line of defense against disputes, non-payment, and misunderstandings.
Without a proper contract, you risk:
If you provide services (consulting, marketing, IT, etc.), this is your most important contract.
What it should include:
Why it matters:
It prevents clients from demanding work beyond what was agreed—and ensures you get paid.
You can get a Service Contract from Legal Tree here
Hiring employees without a clear contract is a legal risk.
What it should include:
Why it matters:
Labor disputes in the Philippines can be expensive and time-consuming. A proper contract helps protect your business.
You can an employment contract here
If your business deals with sensitive information, an NDA is critical.
What it should include:
Why it matters:
Protects your trade secrets, client lists, and proprietary processes.
You can get an NDA here
If you rely on suppliers, this contract ensures reliability and accountability.
What it should include:
Why it matters:
Prevents supply chain issues from disrupting your operations.
Going into business with someone? Never skip this.
What it should include:
Why it matters:
Many businesses fail due to partner disputes—not lack of profit.
Whether you’re renting office or retail space, this contract protects your rights as a tenant.
What it should include:
Why it matters:
Avoid unexpected rent increases or eviction issues.
If someone owes your business money, document it properly.
What it should include:
Why it matters:
Strengthens your case if you need to pursue legal action.
Many SMEs download “free contract templates” online—but these often:
The result? You may think you’re protected—until a dispute arises.
You don’t need a lawyer for every small transaction—but you should consult one when:
At Legal Tree, we help Filipino individuals and SMEs:
Instead of relying on risky templates, get contracts that are tailored to your business and compliant with Philippine law.
You can schedule a consultation with Legal Tree's qualified partner lawyers here
Contracts are not just legal formalities—they are business tools that protect your time, money, and reputation.
If you’re running a business without proper contracts, you’re taking unnecessary risks.
📩 Contact Legal Tree today for a consultation and let us help you secure your business with the right legal documents.
