Business in Philippines – What are the requirements?
When it comes to money or business, the Filipinos can show their different faces. Understandably, because the Philippines is still a very poor country, and many of them work daily to survive and not just to live. Some foreigners have succeeded in establishing themselves a business in the Philippines. Sometimes simply a good idea is sufficient and a portion of happiness in the business belongs to it. But happiness is not a reliable partner. I do not want to stop you from settling here. It is possible!
Often emigrants are looking for an easier way to set up a business. They do not want to go alone; they are looking for a Filipino in order to marry. This is a legal way which could simplify the project, but do not forget. At the Philippines, it is a very popular way, because the emigrants get to know the attitude of the Filipinos.
It is a major challenge to build a business in Philippines.
It is a popular method of marrying in the Philippines, making oneself independent and running the project over the woman. In the worst case, if you will get the wrong woman, who is going to divorce you after a few years, you will end up returning home as a penniless loser. An experience I have experienced often enough.
Just “experience” (if possible their own) is almost as a prerequisite to face the upcoming difficulties. With that I mean:
- Contact construction and a good relationship with local employees, whose working behavior is punctuality.
- Dealing with authorities and institutions, as well as the danger of corruption.
- The legal system, culture and the laws. Those who have not made these experiences are doomed to fail, according to many predecessors. Or would you like to make some bad experiences voluntarily, just to make them? So what we can do is to prepare yourself accordingly to eliminate many risks as possible. For my part, I have read a lot of experience reports of failed existences.
Business in Philippines – The following is a brief overview of the possible business forms in the Philippines (as of 2016).
- Sole Proprietorship – Responsible for this is the DTI (Department of Trade and Industry). Regarding the registration/request, please see below.
- Partnership – General or Limited Partnership – Responsible for this is the SEC (Securities and Exchange Commission). Further information can be found in the Citizen’s Manual on Registration of Corporations and Partnerships.
- Corporation – Stock and Non-Stock Corporation. The SEC details are also in the Citizen’s Manual on Registration of Corporations and Partnerships.
- Foreign Corporations – Branch Office, Representative Office, Regional Headquarters and Regional Operating Headquarters, as well as the non-stock variant of the branch and Representative office. The SEC is also responsible for this, as well as simple references in the Citizen’s Manual on Registration of Corporation and Partnerships.
Important is the “10 Regular Foreign Investment Negative List”, which defines foreign holdings in the Philippines.
Helpful information about the expiry of a business opening:
An alternative would be to apply for a company in the Philippines. Here you can find more information about working in the Philippines.