Business Consulting BlogLegal BlogThe Advantages of Registering a Holding Company in the Philippines

April 2, 2015

With a 6.1% growth in 2014, the Philippine economy expanded slightly less than expected last year. In 2015, The International Monetary Fund expects growth rate to reach 6.7% , a hike compared with previous forecasts which will depend on heavy government spending.

However, foreign investment still doesn’t live up to expectations — and needs. As investments in the manufacturing sector remain disappointingly low, the economy remains largely hinged on overseas remittances and the business process outsourcing industry.

Over the past few months we have noticed a growing number of European companies looking to invest in key sectors of the Philippines: Renewable Energy, Engineering Procurement and Construction, and Manufacturing. But it’s important to note that some of these activities might fall under the Foreign Investment Negative List — a legal act which restricts foreign ownership in some sectors identified as national interest.

In cases like this, a viable option would be to register a holding company — a company that is not involved in any sort of trading but that owns stocks/shares in other companies — as it decreases your exposure when partnering with a Philippine company. The multiplicity of shareholders and directors that it entails would also allow you to decrease the liability of your investments, all the while diversifying your business

If you are looking expand your business to one of the fastest growing economists in Asia, contact Triple i and our consultants specialized in corporate law can provide you advice on the right entity to register in the Philippines.

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