Understanding on How to Start Business in the Philippines
The Philippines has a growing economy, and it is a flourishing country with beautiful islands and rich culture. The population of the Philippines is becoming highly educated, and it is rich in natural resources. It is among the top ten global producers of chromates, gold, and copper. Its environment is business-friendly that attracts foreign investors. That is why, when you set up a business in the Philippines, you can expect it to be fruitful.
Here is the information what you should take note:
- Sole proprietorship – A sole proprietorship is a business organization that is the easiest to run in the Philippines. You can establish it with only one person who is the sole proprietor. Most importantly, your business reflects you, which is why the assets and liabilities of your business are also yours.
- Partnership – A partnership needs at least two people who will contribute assets, and has the intention of dividing profits within the involved parties.
- Corporations – A corporation involves individuals who become a single entity to improve the corporation’s interest. The corporations have the same rights given to them by the Philippine government, and as an individual as well.
How to Start Business in the Philippines:
1. Choose the business structure you want – The first step is to choose the corporate structure you want, and it would depend on the size and resources you have. You must decide whether you must set up a sole proprietorship, corporation, or partnership.
2. Register your business name – You must register a business name you want in these departments based on the type of business you choose:
- Sole proprietorship – should be in the Department of Trade and Industry (DTI)
- Corporate/Partnership – Securities and Exchange Commission (SEC)
- Cooperative – Cooperative Development Authority
The registration fee is between PHP 40 to PHP 120.
3. Make a minimum deposit – Business owners who wish to register for a company in the Philippines must have the minimum capital deposited in the bank. It must be at least PHP 5,000. Your bank will need articles of incorporation and identification documents.
4. Register with the SEC and provide the required materials and documents including:
- Your approved company name
- Articles of incorporation
- Treasurer’s affidavit
- Assets and liabilities statement
- The company particulars which include the information of officers, directors, and stockholders
5. Have the documents notarized which costs around PHP 500 and it takes one day to accomplish
6. Get a Tax Identification Number (TIN)
7. Register your company at the Bureau of Internal Revenue (BIR)
8. Obtain a Barangay Clearance at the nearest barangay hall where your business location will be. It would cost between PHP 300 to PHP 1,000
9. Pay the annual community tax which must not be more than PHP 500
10. Get a business permit from the Business Permits Licensing Office (BPLO)
How to Have a Profitable Business in the Philippines
- Have a solid strategy
If you do not have this, you will find it hard to succeed in the Philippines because the competition is fierce. You can conduct a SWOT analysis to discover your company’s strengths, weaknesses, opportunities, and threats.
- You must have a good website.
The website represents you. In today’s digital world, your company needs to have a website. Filipinos like to do online shopping, and use the internet to search for companies and the services they offer. It is why you must have an attractive website.
If you want to open a business in the Philippines, you can come to us for assistance anytime.