The Philippines has been consistently ranked among the fastest growing economies in the world and many Filipinos and Foreigners alike have taken advantage of this sustained growth and made small fortunes. Unfortunately, for every successful foreign market entry story, there are countless of other horror stories of failed attempts in entering the Philippines as an entrepreneur. As such, here are 5 things to keep in mind when you enter the Philippines:
5 Things You Need to Remember When Entering the Philippine Market
5. Know the ownership requirements of your business or enterprise.
The common impression of foreigners is that they need a Filipino partner for any business they enter into in the Philippines. Although there are many nationalized industries, not all businesses require Filipino ownership. It is important to know if the business you are interested in requires Filipino ownership and at what percentage.
Ignition Co-founders Margo Flores and Pao Villonco enjoying their downtime
4. Do a thorough background check on your Filipino partners.
This sounds like a no-brainer, but you can’t imagine how many foreigners take this step for granted. If you do decide to do business and enter into a partnership with a local partner, do a background check. Some foreign companies are covered by the Foreign Corrupt Practices Act (FCPA), which have very strict requirements and restrictions on conflicts of interest and corruption.
Ignition CEO Pao Villonco, Ignition Director Atticus King, Director of Sales and Marketing Tanya Llana and Co- founder of Tag Media Grace Nicolas.
3. Check your immigration status.
Many foreigners start doing business or work in the Philippines with only a tourist visa. Although the government has been very lax in the past, it is getting stricter in making sure foreigners comply with the visa requirements.
The Ignition team and their online community
2. Incorporate properly.
Make sure you properly register your business with the appropriate government agencies and local government unit. (SEC, BIR, LGU, PAGIBIG, SSS etc…)
Ignition, your engine for innovation
1. Make sure you adhere to regulatory compliance requirements.
Regulatory compliance in the Philippines can be a minefield. Dealing with the SEC, BIR and local government units (not to mention other government agencies for specialized businesses) can be dizzying. Be sure you have a competent regulatory compliance officer on your team, otherwise you may face hefty fines or even closure of your business.
Soft launch with our online family and our wine sponsors Stella Rosa.
This may sound tedious and time-consuming, but fortunately for those who wish to do business in the Philippines, there is a ONE-STOP SHOP for everything you will initially need to start a business. Ignition is the first Venture Studio of its kind in the Philippines. It is a fully integrated market entry platform, which provides business consultancy, regulatory compliance, accounting and fully serviced offices. We fully encourage anyone interested in doing business to drop by their offices and consult with their expert market entry team led by Atty. Paolo Villonco (the first Filipino graduate from Stanford Law School) and Atty. Mark Tiaoqui (a seasoned corporate and tax lawyer). Contact them at firstname.lastname@example.org or visit their website at www.ignition.biz