How to Incorporate a Business in the Philippines

Are you looking for a country to invest in?

The Asia Pacific region is an attractive investment destination because of the low cost of living and affordable skilled labor force. One of the countries that should be on your shortlist is the Philippines. The latter has been a hotspot for outsourcing in the last several years. Many business process outsourcing (BPO) companies have set up bases in the country. Some of these entities are representative offices, branch offices, domestic subsidiaries, or others.

Companies have invested in the Philippines because of the advantages doing so provides. Some of which include:

• According to a tax consultant Philippines, the country provides incentives (including non-tax types) to would be foreign investors who want to establish a business entity. They can get income tax holidays, tax exemptions, duty exemptions, deductions, and others depending on the nature of the business. All these allow your company to save money and direct finances for different investments. This enables you to grow your organization effectively.
• A substantial percentage of the workforce are fluent in English. Many potential Filipino employees are at native speaker level. They can communicate their thoughts and ideas in a clear way. Their communication skills in English are first-rate, which means that training them is easy. You can designate them for various tasks such as customer support, accounting and bookkeeping, IT, marketing-related work, and others. This alleviates some of the workload of your employees. This allows them to focus on more productive and profitable tasks for your company.
• The country is strategically located in the Asia Pacific. This makes it easier for your team to visit your other regional offices whether it’s in Singapore or Bangkok. Flights are cheaper and shorter compared to traveling from Europe or the Americas. You’ll save more money and create more opportunities for your company to grow in the region. You can use the Philippines as a hub for your business. You can respond faster to the needs of your different offices.
• Employing Filipinos costs less compared to their counterparts in Western countries. You get the same quality or in some cases better output while spending less money. They can deliver the results you want within the standards you established. The workforce is talented and skilled in various fields. They can acquire the necessary skills and certifications you might need to comply with your clients’ requirements.

Having cited some of the advantages of doing business in the Philippines, would it be interesting to learn more about how you might want to learn more about how you can incorporate a business in the country. A tax consultant Philippines cites the following ways you can start the incorporation process.

Securities and Exchange Commission (SEC) Business Registration

You’ll have to register your company name and details with the Philippine SEC as the first step to legitimize your presence in the country. The general requirement is to submit your Articles of Incorporation and By-laws. If you get approved, you’ll receive a Certificate of Registration.

Acquire a Barangay Clearance

You’ll need to get clearance from the barangay (local district) where your company will operate. The documents you need to submit include the SEC Certificate of Registration, and your company’s local office Proof of Address. Once you submit these documents, you’ll get a barangay clearance for your company.   

Get a Business Permit

The Philippine government requires companies to get many documents, one of which is a business permit. This requires you to go to your local mayor’s office to submit the following: SEC Certificate of Registration, company local office Proof of Address, and a barangay clearance. After you submit these documents, you’ll get a business permit from the local government.

Bureau of Internal Revenue (BIR) Registration

Within 30 days from the issuance of your SEC certificate of registration, you’ll need to register your company with the BIR as part of the process of establishing a business entity. You’ll need to go to your company’s District Office (RDO) to get a Tax Identification Number (TIN). You’ll also need to submit the following documents:

1. Filled out BIR Form 1903
2. SEC Certificate of Registration
3. Proof of Address
4. Business Permit  

After completing the necessary documents, you should also register your receipts and invoices as well as the accounting books to use in monitoring business transactions.  Once you submit everything, the BIR will provide you with the Certificate of Registration.  

Secondary Registrations

As an employer, the final step is to register with agencies such as the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund, Social Security System, and the Philippine Health Insurance Corporation. Registering with these agencies allows you to provide your local employees with compulsory benefits.

This is the process of establishing a business in the Philippines in a nutshell.

Now you are ready to take the calculated risk of investing in the country. Doing so opens opportunities for your company to expand your reach effectively and generate more profits.

Manila Bookkeepers Your Tax Consultant Philippines

Before you invest in the Philippines, one of the first things you need to do is find a reliable and trusted partner. Manila Bookkeepers is a company you can rely on when it comes to establishing a business entity in the country. Their team can assist you in establishing a representative office, branch office, or a domestic subsidiary. Their management has more than two decades of experience working in the finance and accounting industry.

Their team can guide you through the process of procuring the necessary documents and permits to get your company ready to do business in the Philippines. They’re expert tax consultant Philippines that can help you identify incentives when you invest in the country. Some of these benefits include tax holidays, exemptions, and some of which are non-tax related. Manila Bookkeepers’ services can simplify and ease your entry into one of the emerging economies in the Asia Pacific region.

If you need assistance with establishing a business entity in the Philippines and learning more about the tax incentives you get for your investment, visit our website www.manilabookkeepers.com.