Opening your company inside the Philippines brings benefits. Its convenient location, rich natural and human resources, and consistently growing economy help it become an excellent spot to develop and expand your venture. Search for professional with business consultants experienced with the Asian market to see the best ways to maximize your benefits.
Why You Should Conduct Business inside the Philippines
The nation is one of Asia's fastest rising economies at this time because foreign investors are selecting it as their new business center. One reason would be the low cost of setting up and doing business. You will save between 30-40% from your own business costs because wages and utilities are cheaper in comparison to US rates. Its location is in addition ideal for start-up businesses, since the Philippines will serve as being the gateway to the rest of Asia.
Ask your service provider of business consulting in Philippines about the government incentives available to foreign investors. In case you fit into a niche not contained in the country's Foreign Investment Negative List (FINL), you could claim 100% ownership of your company. The Board of Investments and the Philippine Economic Zone Authority offers different tax incentives than enable you to save further. Compare features from BoI and PEZA registration and register with one of these associations.
Finding qualified workforce is easy since the country boasts a 94% literacy rate. Language barriers isn't going to be a difficulty because English is a part of every school's curriculum plus they are the 3rd largest English-speaking country on the earth. Your business consultants will see skilled labor from 350,000 university-educated graduates yearly. You can also benefit from the free trade zones put in by the Association of Southeast Asian Nations (ASEAN), where you will see skilled and competitive laborers.
Registration Procedure
You should still educate yourself on Philippine business registration processes even when you have business consultants at your disposal. This enables you to prepare all necessary files earlier, accelerating the process. First, register under your respective business distinction. Philippine laws will recognize your business under one of three - a sole proprietorship, in case you are in full management of your business; a partnership, in case you have another investor with similar power and control; and a corporation, if the company has separate stockholders. Each kind includes its own tax incentives as well as other benefits. Whether you should register with the Department of Trade and Industry or the Securities and Exchange Commission varies according to your industry type.
You must acquire necessary permits from local government units before beginning your operations. Proceed to the "barangay hall" and the city or municipality hall in which you will set up your business and submit your DTI or SEC registration together with other requirements to acquire a clearance to operate. Next, obtain your taxpayer identification number from the Bureau of Internal Revenue (BIR) and register your books. Finally, register with the BoI or PEZA depending upon what incentives you would want to receive.
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