A funeral parlor, or punerarya, arranges the care of the deceased, the wake, the funeral car and the burial or cremation for grieving families. Most start as a family-run parlor with one chapel, a licensed embalmer and one funeral car. The money is made on fairly priced packages, add-ons quoted in writing, and instalments collected on time while staying kind to families.

This guide walks through what it takes to start a funeral parlor in the Philippines: the capital, the monthly costs, the permits and the first 90 days. The peso figures are sample estimates for an one-chapel punerarya in Cebu as of October 2026; get your own quotes before you decide.

How much capital you need

The sample comes to about ₱2,593,750 including one month of fixed costs kept as a cash buffer. It splits into chapel and office (₱539,000), embalming room (₱300,000), funeral car (₱1,200,000), viewing equipment (₱155,000), opening stock (₱142,000), permits and deposits (₱145,000) and working capital (₱112,750). Other ways to start: home-wake service without a chapel at ₱1.5 million–₱2 million and several chapels and viewing rooms at ₱10 million and up.

Monthly costs and break-even

Fixed costs in the sample are ₱112,750 a month; the biggest are rent (₱35,000), funeral attendants and driver (₱31,200) and office staff (₱15,600). Each service sold earns about ₱30,136 after its own costs, so the break-even is 3.8 services a month, and the startup capital takes about 26 months to come back at full sales.

Permits and registration

Register the business name with DTI (or SEC or CDA), then get the barangay business clearance, the Mayor's permit through the city or municipal BPLO, and BIR registration; register with SSS, PhilHealth and Pag-IBIG once you hire. A funeral parlor also needs: sanitary permit for a funeral establishment, licensed embalmer and funeral car registration and insurance. Requirements and fees differ by city, so ask each office for its checklist first. DTI Negosyo Centers help for free.

Where to set up

  • Near a hospital or along the road to it
  • On a main road the funeral car can reach easily
  • Near parishes and cemeteries
  • A lot with parking for mourners' vehicles

Mistakes to avoid

  • Families cannot pay the balance. A downpayment, written instalment dates, and packages matched to what the family can afford.
  • The funeral car breaks down. Service it on schedule, keep a backup car you can hire, and check it before every trip.
  • Sanitation problems in the embalming room. A licensed embalmer, proper drainage and waste handling, and PPE every time.
  • Selling memorial plans without a licence. Pre-need plans are licensed by the Insurance Commission; only service plans sold by licensed companies.

Plan it with the starter kit

The Funeral Parlor · Negosyo Starter Kit has every worksheet behind this guide in a 26-page PDF, plus an Excel calculator: type in your own quotes and it works out your capital, break-even, profit and payback month. It costs ₱499 and downloads right after payment.