The Philippines is one of the most robust growing economy in Asia today. GDP growth for the Philippines is projected at 6.4% for 2015 and 6.3% in 2016. There is also a strong increase in private consumption in 2014 which includes modest inflation, and higher inflows of remittances which are expected to continue until 2016.
Private consumption generated more than 60% of the growth in gross domestic product (GDP) last year. Consumer spending grew by 5.4%, benefitting from a 2.8% rise in employment, modest inflation, and higher remittances from overseas Filipinos, which reached $27.0 billion after climbing in 2014 by 6.3%, or by 10.9% in Philippine peso terms
Who are qualified to Invest in the Philippines?
Anyone , regardless of nationality, is welcome to do business and invest in the country, in almost all areas of economic activities provided these are not listed in the Foreign investment Negative List of the Foreign Investment Act of 1991.
Low Cost of Doing Business
Wages are typically less than a fifth of that in the United States. Local communication, electricity, and housing costs are also 50% lower compared to the US rates. Foreign companies that are now outsourcing programming and business processes to the Philippines estimate 30%-40% business cost savings, 15%-30% call center services and application systems, and 35%-50% software development.
Legal Requirements for Starting a Business in the Philippines
The legal requirements for starting a business in the Philippines depend on its type of business and industry. Partnerships and corporations are required to be registered with the Securities and Exchange Commission (SEC), while single proprietorship businesses are not. Proprietorship are instead required to register with the Department of Trade and Industry (DTI) for the registration of their business name.
You also need a SEC registration for registering as a partnership or corporation , DTI registration – for registering your business trade name (BTR) , Mayor’s business permit for getting the license to operate in the city or municipality and payment of your local business taxes , BIR registration – for getting TIN, official receipts and invoices, registering your books of accounts, and paying your national internal revenue taxes. These are the some major requirements that you need before you start your business in the country .
Developing Infrastructure for Global Growth
A well-developed communication, transportation, business, and economic infrastructure links the three major islands Luzon, Visayas, and Mindanao and distinguishes the Philippine economy. Highly accessible by air, water, and cyberspace, liberalization of inter-island shipping and domestic aviation further sparked improved facilities and services. The container terminals are suited to handle cargo traffic at the highest levels of efficiency.
If you want to know more about Investment in Philippines watch this video
Tax Incentive Programs
The Philippine government has several tax incentive programs depending on the nature of one’s business, with different incentive schemes available relative to the location and registration of the proposed business activity.Although these government incentives are readily available, facilitating registration from individual offices are not always easy. There is also a large amount of post registration compliance necessary to maintain a valid tax exemption. Triple i Consulting can help your company prepare all the documentary requirements needed for acceptance, as well as monitor the compliance of the company in regard to the accepted practices of each organization.
Truly it is now the time to invest in the Philippines. The country is ripe for expansion and with the hospitality of its people, your business will be in a good country and under good hands.
Do you plan to invest in the Philippines? Do you need to know more about how to invest in the country? Just comment below and we will respond.
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