Before planning for business set up in Philippines, you must do your homework and find reliable sources with correct information on company setup in Philippines. The business type dictates the kind of legal entity to be registered with Philippines Securities and Exchange Commission (SEC). When it comes to foreign ownership of a business in Philippines, there are many restrictions. These restrictions include percentage of foreign ownership and/or the amount of paid-in capital according to the business type and whether the company will sell to the domestic Philippines market or not. The Foreign Investment Negative List details the latest restriction for company set up in Philippines.
Business setting up in Philippines:
There are various steps you need to follow while setting up your business in Philippines. A condensed step guide is listed below:
• Reserve your company name with the SEC and pay the requisite fees
• Prepare & collect the documents required for submission to the SEC
• Once the certificate of incorporation or license to conduct a business is issued by the SEC, the company can move ahead to obtain the Local
Government Permits (barangay clearance & mayor’s permit). Moreover, to avail employee benefits, Social Security System, Home Development Mutual Fund, and PhilHealth, the company needs to register with the Bureau of Internal Revenue and the government agencies
Business entities available in Philippines:
i) joint stock corporations
ii) regional headquarters
iii) branches; and
iv) representative offices
However, each one of the entities has its own advantages or disadvantages depending on the business type and the available tax treaties with your home country.
There are many amazing business investment opportunities available in Philippines. The major growth businesses in Philippines are:
• Business Process Outsourcing
• Health and Wellness