When our clients mention their will to establish a Limited Liability Corporation (LLC) in the Philippines, they are far from understanding the legal hurdles.
In the Philippines there is no LLC, the closest is a domestic corporation that separates the shareholders from the company. With a different legal personality, the liability of the shareholders does not extend to its personal assets, in fact is limited to the amount of shared capital.
While foreign investors are attracted by the the reduced liability, the complex structure of a domestic corporation is a problematic matter. In fact, the most part of the companies cannot comply and provide the required 5 directors – and shareholders at the same time – necessary to compose the board. Furthermore, appointing a Corporate Secretary (must be a Filipino) and a Treasurer (must be a resident of the Philippines) it is not an easy task for a business organization that has just entered into a new market.
According to the 2015 Doing Business Report by the World Bank, Philippines remains a very difficult country to incorporate, with 16 procedures and 34 days in average.
With several years of experience in making change happen in the Philippines, Triple i has created approaches and developed insights that enable companies from the most various industries to incorporate, develop and grow their business in the Philippines.
If you are looking expand your business to one of the fastest growing economists in Asia, contact Triple i and our consultants coming from a complete range of disciplines will be able to assist you.