The Philippines remains one of the most difficulties countries in the world to register a business. A close look at the World Bank’s survey ” Doing Business 2014 gives us clear picture on the complexity of incorporation in the Philippines.
Several bureaucratic and legal hurdles can be pointed out: the number of governmental agencies involved and lack the communication between them, dissimilar requirements from each local government and the absurd number of procedures. Curious numbers: It takes 15 procedures in order for a business to be legally approved by the government, making it the the world’s third longest (after Equatorial Guinea which takes 18 procedures and Venezuela which takes 17 procedures!).
The Philippines has actually been improving in all the international rankings of transparency, credit rating, easy of doing business, etc. but remains on the bottom level in this particular topic of starting a business. This is one of the main reasons why the Philippines has one of the lowest levels of Foreign Direct Investment in the region and protects the monopolies in the country from real competition.
Before incorporating in the Philippines, here are 4 important tips to follow:
The importance of a good consulting
Business Registration is too complex and you will never be familiarized with the procedures, requirements and working method in the Philippines. You must be educated on how to comply with the required documents as a simple mistake on the size of your application might cause several delays on the incorporation. A good consulting firm will provide you the knowledge and the accurate information that you will never find in the governmental sites.
Decide on the ideal structure
The best business structure for you today might not be the best corporate organization tomorrow. Different structures apply for different business models. To set up a new corporation or an extension of a company abroad? What are the pros and cons? Which process takes longer? Look for someone with experience in providing business registration services for companies as yours.
Choose the right location
Shifting to a different location is a painful and costly process so be cautious when choosing your office space. Some industries require particular office size and local governments have also different requirements when comes to the documents to be provided and the dimension of the office.
Philippines is known by the quality and hard working labor force. But it is also factual that dismissing in the Philippines remains a big issue. Labor code is very in favor of the employee and there are standard procedures that must be followed. Having standard contracts in place and an efficient recruitment process is essential.
Triple I has set up +100 companies over the past years. Call Centers, Pharmaceuticals, Multilevel marketing, recruitment and software development are just some of the industries where we have a great experience. Different sectors require different strategies, permits and business models. Triple I and its team is here to help you to understand the Philippines and register your business. Simplifying Business is our mission!