With its recent positive economic performance, the Philippines is fast becoming the go-to destination for foreign investments. However, with the multitude of locations in the country where businesses can set up operations in, investors may find it hard to decide where they will set up their main base.
As the capital, Metro Manila will always be one of the best options.
Almost all governing bodies that businesses need to transact with are based in or very near the city. Therefore, it will be easier and less costly to process applications, approvals and compliances because of the proximity with the government agencies.
Transportation of goods should also be less of a problem since almost all couriers, logistic and freight companies have bases in the city. This also holds true for human travel because the main ports and airports are within the vicinity or have routes that go through it. Cabs and hotels are also in abundance, making it more convenient for travelling businessmen.
The biggest and most prestigious universities are situated in the city, translating to a more talented labor pool upon graduation. English is also the major mode of instruction in schools so the students grow up to be more skilled at the language.
The abundance of establishments that remain open and active at night also makes it ideal for businesses that operate for 24 hours because of the availability of transportation, food and well lit areas.
Its growing middle class, which is largely made up of young professionals, makes for a great consumer market, making it the ideal place to sell goods and services.
However, there are also downsides to putting up shop within the city.
Rent and utilities cost higher than that of provinces. Labor cost may also be higher because of the raised required minimum wage. Taxes may also be significantly lower in rural areas.
The time it takes for transportation of goods may also be affected because of traffic and restrictions on large vehicles in major highways during certain times in the day.
Recently, Local Government Units (LGUs) in the metro have taken to giving additional requirements for businesses that wish to be registered in their jurisdiction. This makes the registration process lengthier and more tedious.
Overall, whether or not Metro Manila is the best choice when it comes to the location of a business will depend on what the business needs. Staying out of the city may result to lower costs but Metro Manila remains to have a lot to offer, factors that will allow businesses to flourish and grow to its full potential.
Triple i has on board a team of Business and Legal experts with sufficient experience in the Philippine business setting to help you determine which option will help you meet your business goals the best.