In several blog posts we discussed about how difficult is to incorporate in the Philippines. Despite the recent leap of 13 spots in the latest Doing Business Report, Philippines surprisingly (or not) dropped 7 places (161 from 154 in 2014) when it comes to starting a company.
Lack of communication between governmental authorities, complex documentary requirements, excessive number of directors to be appointed, high capital and excessive number of procedures are some of the main reasons explaining this drop. However, it is encouraging to know that Philippine authorities are finally tackling this matter that has a direct impact on the Foreign Direct Investment in the country.
Last April 15, several governmental authorities held a press conference to announce a set of policies to be implemented within this month, aiming to simplify the process of registering a company in the country. This new package of reforms will decrease the number of procedures and days from 16 to 6, and 34 to 8 respectively.
Although this is welcoming news for foreign investors, only time will tell the effectiveness of this program. We have seen similar programs in the past that have proven to be somehow disappointing.
The Philippines urges to deregulate the business registration process if aims to become an investment destination. When compared to its neighbors, the Philippines only ranks behind Cambodia (184) and Myanmar (189) that sits on the last place of this Worlds Bank’s ranking, with an average of 72 days to start a business!
The difficulty of this process is also linked to the industry of the company since some sectors require additional licenses from different governmental offices. The capital and officers required to start a company also vary according to the business structure that better suits the goals of the company.
Contact us if you would like to know more about how to Incorporate in the Philippines in the Philippines.