Everyone would agree nowadays that in Asia, the Philippines is one of the top countries to do business in. Indeed, there are countless opportunities for both Filipino and foreigners who want to run a successful business in the country. In March 2013 Bangko Sentral ng Pilipinas (BSP), the central bank, announced that Foreign Direct Investment (FDI) in the Philippines had reached $2 billion in 2012, up nearly $500 million from earlier projections released by the UN Conference on Trade and Development (UNCTAD) in January. According to the BSP, these figures represent 10% growth compared to 2011.
Therefore as an increasing number of entrepreneurs, from small to large companies are relocating here, the Philippine government appears more determined in facilitating the process of doing business. Indeed, speaking at the Ease of Doing Business Summit 2013 held on May 3rd 2013, Mr. Guillermo Luz, co-chairman of the National Competitiveness Council, expressed their intention to bring up the country’s 138th rank out of the 185 economies surveyed by the World’s Bank.
Mr. Luz announced the creation of a specialized team to improve the country’s business environment. These teams will focus first on indicators related to starting a business, getting credit and protecting investors, and resolving insolvency. Currently, the procedure of starting a business involves 36 steps. This results in a longer timeline and greater costs. The government aims to reduce the number of steps to 16. The same applies to the payment of taxes where the government aims to reduce the number of steps from 47 to 14. Also, as construction is one of the main industries due to the efforts of developing the country, obtaining construction permits requires around 47 steps which the government aims to reduce to 14.
According to the International Finance Corp’s latest Ease of Doing Business Report, the Philippines ranks second from bottom, just above Laos, out of nine ASEAN countries covered. The Philippines offers great opportunities for those who choose to start their business here, but understanding the procedures and remaining compliant with the local requirements is not necessarily an easy task.
Simplifying business is one of the objectives of Triple i Consulting. Our goal is to guide you through the different procedures of business registration and compliance, regardless of your size and industry. Contact us if you would like more information on how can we support your business in the Philippines.