To register a company in the Philippines, as well as to open a bank account in the Philippines is a rather promising solution from the point of view of investment. Below, we will examine in detail the features of the registration procedure, as well as the key benefits of starting a Philippine business.
The Republic of Philippines is an industrial island state, located in Southeast Asia and occupying the territory of more than 7 thousand islands in the west of the Pacific Ocean. Neighboring countries are Taiwan and Indonesia. Key sectors of the economy are: the electronics, an agriculture (a forestry, fisheries), a food industry (an export of fruits and rice), a woodworking, pharmaceuticals, a chemical and textile industries. The capital of the state is Manila. Official languages are Tagalog/English. The currency is the Philippine Peso (PHP).
Advantages of doing business in the Philippinesthe
The main reasons for registering a company in the Philippines will be the following:
- A rapid economic growth;
- A strong socio political situation;
- A developed transport infrastructure;
- A modern banking sector;
- A high interest in foreign investment;
- A comfortable environment for startups and expanding existing business;
- An affordable labor;
- A flexible taxation;
- More than 4 DTA agreements with European countries;
- The presence of 74 production and 22 agroindustrial economic zones, as well as a free trade zone CEZA (Kagayan).
If you plan to open a Philippine company, then we recommend you to choose one of the following business areas: a light industry, a tourism, the service sector, an ICO business, high tech projects.
Types of companies in the Philippines
If you are planning to open a company in the Philippines remotely, first of all, you will need to choose the appropriate form of business. In the Philippines the following businesses are acceptable:
- An individual entrepreneur (SP);
- A corporation (DSC);
If you are looking for a profitable investment option or want to start a Philippine business from scratch, then the best choice is to register a domestic stock company in the Philippines, which is a kind of analogue of an LLC in this jurisdiction.
What are the conditions necessary to start a business in the Philippines?
If you are interested in setting up a company in the Philippines and in opening a corporate bank account in the Philippines, we recommend you to study the following requirements of the Regulator:
- The unique name of the enterprise (indicating one or more industries);
- The number of founders is at least 5 people (individuals or legal entities, 3 of them must have resident status);
- The minimum authorized capital is 10 thousand PHP (about 193 USD). A recommended authorized capital is 50 thousand PHP (about 963 USD);
- A registered legal address;
- To open Philippine corporate bank account;
- The presence of a notarized charter;
- The accounting;
- A submission of financial statements/audit.
A tax treatment
If you want to open a Philippine company remotely, we advise you to pay special attention to the specifics of taxation in this state:
- The basic income tax rate is 30% (a reduction in the rate to 10% and 2% is acceptable);
- The VAT rate is 12%;
- A dividend tax is 15%;
- Interest are 20%;
To start a business in the Philippines
If you intend to register a company in the Philippines, we recommend you entrusting the solution to this problem to the YB Case specialists. We will provide you with professional legal assistance, in particular, we will advise you in detail regarding the business pros of the chosen jurisdiction, will provide legal advice on how to open an account with the Bank of Philippines, and also legal support in the process of completing all the necessary registration documents.