Starting a business in Mandaluyong, Metro Manila, Philippines, can be an exciting venture with the potential for growth and success. However, navigating the registration process, understanding the appropriate business structure, obtaining visas for foreign workers, and managing other aspects can be quite complex. This comprehensive guide provides you with the necessary information to start your business in Mandaluyong, potential tax incentives, office space options, salary estimates, and the importance of proper business registration. Additionally, we will explore how Triple i Consulting can assist you in registering your business efficiently and effectively.

Identifying the Proper Business Structure

Selecting the right business structure is crucial as it determines your company’s legal status, taxation, and personal liability. In the Philippines, the common business structures are:

1. Sole Proprietorship: The simplest form, owned and operated by one individual. The owner is personally liable for all business obligations.
2. Partnership: Two or more individuals share ownership and liability. There are two types: general partnership and limited partnership.
3. Domestic Corporation: A separate legal entity from its owners, offering limited liability for shareholders.
4. One Person Corporation (OPC): A corporation that allows a single individual to establish a separate legal entity with limited liability.

Selecting the appropriate structure depends on factors like the nature of your business, the number of owners, the level of control, and the potential risks involved.

Registration Process and Tax Incentive Programs

Registering a business in the Philippines involves several steps:

1. Business Name Registration: Verify the availability of your desired business name with the Department of Trade and Industry (DTI) if you’re a sole proprietorship or with the Securities and Exchange Commission (SEC) for partnerships and corporations.
2. SEC Registration: Submit the necessary documents to the SEC for partnerships and corporations.
3. Local Government Registration: Obtain a Mayor’s Permit / Business Permit from the Mandaluyong City Hall.
4. Tax Registration: Register with the Bureau of Internal Revenue (BIR) to obtain your Tax Identification Number (TIN) and secure the appropriate business tax permits.

Regarding tax incentive programs, the Philippines offers two major options:

1. Board of Investments (BOI): The BOI provides incentives such as income tax holidays, duty exemptions on imported capital equipment, and simplified customs procedures for businesses engaged in preferred activities and industries.
2. Philippine Economic Zone Authority (PEZA): PEZA-registered companies can benefit from tax holidays, special tax rates, and other incentives when operating within a designated economic zone.

Leasing a Company Office

Renting a physical office space in Mandaluyong is a common choice for many businesses. The cost of office space can vary significantly depending on the location, size, and facilities offered. As of the time of this writing, the estimated monthly rental cost for office space in Mandaluyong ranges from PHP 400 to PHP 1,200 per square meter.

For startups or businesses looking for more flexible options, two popular alternatives are:

1. Virtual Office: A virtual office provides a business address, phone answering services, and occasional access to physical meeting spaces without the need for a dedicated office.
2. Serviced Office Spaces: These are fully furnished and equipped offices that can be rented on a short-term basis. They offer amenities like reception services, meeting rooms, and internet access.

How to Open a Corporate Bank Account

To open a corporate bank account in the Philippines, you’ll typically need the following documents:

1. SEC or DTI Registration Certificate
2. Mayor’s Permit / Business Permit
3. Articles of Incorporation/Partnership and By-Laws
4. Board Resolution authorizing account signatories
5. Valid IDs and TIN of authorized signatories

Contact various banks in Mandaluyong to inquire about their specific requirements and choose one that best suits your business needs.

Visas for Foreign Workers

If you plan to hire foreign workers for your business in the Philippines, you need to secure the appropriate visas:

1. 9(g) Visa: This is a pre-arranged employment visa for foreign nationals with job offers from Philippine-based companies.
2. Alien Employment Permit (AEP): Foreign nationals working in the Philippines must obtain an AEP from the Department of Labor and Employment (DOLE) after securing the 9(g) visa.
3. Special Work Permit (SWP): For short-term or temporary work assignments (valid for three to six months).

The specific requirements and procedures for obtaining these visas may change over time, so it’s essential to consult with the Philippine Bureau of Immigration or a legal expert for the most up-to-date information.

Estimated Filipino Employee Salary Range

The salary range for Filipino employees in Mandaluyong varies depending on the position, industry, and experience level. As of 2021, here is a general estimate for certain positions:

1. Entry-level positions: PHP 15,000 to PHP 30,000 per month
2. Mid-level positions: PHP 30,000 to PHP 60,000 per month
3. Managerial positions: PHP 60,000 to PHP 150,000 per month

Note that these figures are approximate and can change over time.

Problems and Fines Related to Business Registration

Failing to register your business properly can lead to various issues, such as:

1. Legal Liabilities: Operating without the necessary permits can result in penalties, fines, or legal action.
2. Business Disruptions: Non-compliance with registration requirements may lead to temporary or permanent closure of your business.
3. Ineligible for Incentives: Not registering under BOI or PEZA could mean missing out on tax incentives and other benefits.

How Triple i Consulting Can Help You

Starting a business in Mandaluyong, NCR, Philippines, requires careful planning, adherence to regulations, and proper documentation. Navigating the registration process, understanding tax incentives, acquiring office space, and handling visa applications can be daunting tasks.

We are here to simplify the process of application, business registration, and other requirements, saving you time, effort, and money. Our aim is to help you achieve your business needs while you can concentrate on running and growing your business(es).

Triple i Consulting stands as the pioneer ISO 9001:2008 firm in the Philippines, offering exceptional company and business registration services. If you require assistance with company incorporation or business registration, reach out to us, and we’ll be glad to assist you!

To arrange a complimentary initial consultation with one of our registration experts, feel free to contact us through any of the following channels:

• Contact Us Here
• Fill out the form below
• Call us at: +63 (02) 8540-9623
• Send an email to: info@tripleiconsulting.com

Let us handle the complexities of business registration while you focus on achieving your core objectives.