The Advantages of a Representative Office in the Philippines

Are you planning to establish a business entity in the Philippines?

If your answer is yes, you might want to consider a representative office Philippines.

Why invest in the Philippines?

The Philippines is an investment-worthy country because of its potential. Some of the reasons to invest in the country include:

  • Growth in Outsourcing Industry – The country is one of the top destinations for call centers and Business Process Outsourcing (BPO). The skilled workforce and high English proficiency make it a top choice for many multinational companies. According to Statista Market Insights, pegged the revenue annual growth rate of the industry at 9.14% which will result in a forecasted market volume of up to US$0.96 billion in 2028. This projection provides a positive outlook for would-be investors who are looking to establish a business in the Asia Pacific region.
  • Skilled Workforce – When looking for a country to invest in, one of the factors that affect the decision of investors is how skilled the workforce is. The Philippines has a deep talent pool with potential employees trained as engineers, IT professionals, accountants, and others. The workforce is easy to train and can adapt to the requirements of their potential employers. They can comply with international standards to meet the needs of companies.
  • Fluency in English – The Philippines is one of the top countries in English proficiency. Many Filipinos can at least speak basic English. Professionals have a high level of proficiency which makes it easier for foreign-owned companies to train and onboard them.
  • Cultural Affinity – Filipinos are familiar with many cultural nuances of English-speaking countries. They can carry a conversation about a variety of topics.
  • Cost-Efficient Investment Destination – Investors can keep their costs low when they establish a representative office Philippines or other types of business entities. Salaries are lower compared to hiring in other countries for the same skill set and experience level. You get first-rate output minus the high costs.
  • Location – The country is conveniently located from financial and economic hubs in the region such as China, Japan, Singapore, and South Korea. You can conduct your business with your company’s other partners in the region without the hassle and cost of coming from a different part of the world.

What is a representative office?

This type of business entity is foreign-owned. A parent company establishes a corporation in the Philippines wherein it conducts non-transactional and non-income generating activities. Some of the tasks that a representative office does for its parent company is to provide support. This includes but are not limited to:

  • Marketing
  • Back-office accounting and bookkeeping
  • Data entry
  • Market research
  • Product quality assessment
  • Customer service
  • Administrative duties

A representative office Philippines is a possible investment option. You can outsource some of your tasks to your partners while you focus on your core strengths. This allows your team to learn more productive skills and concentrate on profitable projects.

What are the advantages of a representative office?

You must be wondering why opening a representative office is a viable solution when you invest in the Philippines. This entity provides potential foreign-owned companies the following advantages:

  • Outsourcing allowed tasks to a representative office reduces costs. You get the same quality output or better at a lower labor cost.
  • Allows you to have a presence in a fast-growing region in Asia.
  • Quicker response times to problems your company might encounter while doing business in the Philippines.
  • Gain market insights and turn them into actionable strategies within a shorter time frame.
  • Exemption from paying income taxes because a representative office is not allowed to generate income from any services it performs in the country.
  • Straightforward requirements to establish.

These are some of the benefits of establishing a representative office Philippines. Factor these advantages in your decision making so that you’ll make an informed choice on whether to invest in this type of business entity or not.

How to establish a representative office Philippines?

You’ll need to procure and submit requirements and comply with local laws to establish your representative office in the country. Some of the things you need to do include but are not limited to the following:

  • Bureau of Internal Revenue (BIR) Certificate of Registration
  • Register with the Securities and Exchange Commission (SEC)
  • Acquire local business permits where you will establish your representative office.
  • Appoint a resident agent.

What is a resident agent?

The SEC requires prospective investors to appoint a resident agent whenever they establish a branch office, representative office, or a domestic subsidiary in the country. This agent can be a Philippine resident or a domestic corporation that conducts lawful business in the country. A parent company’s resident agent receives summons and notices and conducts legal procedures. A parent company must provide its designated resident agent with written permission to sign required government paperwork and legal documents.

Find a Partner to Establish a Business Entity in the Philippines

Representatives of foreign-owned companies might encounter problems with investing in the country for a variety of reasons. They might be unfamiliar with the local culture, regulations, paperwork, timeframes, and others. These cause possible delays in their plans for investing or they simply go elsewhere.

When you want to establish a representative office Philippines, we at Manila Bookkeepers can assist you. Our leadership has more than two decades of experience in finance and accounting. Our team can help you register your business as a branch office, domestic subsidiary, or a representative office. We can walk you through the process such as identifying the documents you need to submit, process permits, secure licenses, and other possible compliance requirements.

You’ll need a resident agent when you decide to establish a representative office, branch office, or a domestic subsidiary in the Philippines. Manila Bookkeepers can act as your resident agent. We also offer some corporate secretarial-related services so that you can concentrate on managing your business. We’ll assist you to comply with local regulations and laws so that your company won’t incur penalties. We can also provide you with finance and accounting services as you scale up your business in the country. Learn more about our first-rate services by visiting our website https://manilabookkeepers.com/. You can count on our team to deliver.

Manila Bookkeepers


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