Comments on: Doing Business in the Philippines

By: Mely

Mely — Mon, 14 Nov 2011 20:25:15 +0000

I am a Filipino with US citizenship,is it possible to start a business in the Philipppines sewing clothings and sell it to the US?

Mely, yes, you can. Export companies can be 100% foreign owned.

By: Bob

Bob — Wed, 26 Oct 2011 03:32:21 +0000

Dear Sir,

I want to invest in a Filipino trading company (33.3%). Can I do this using my overseas company as the shareholder?

Thanks.

Bob, yes you may invest in the a Filipino trading company as long as they do not sell retail. An overseas company may be a shareholder of a Philippines company,

By: roni garciR

roni garciR — Wed, 05 Oct 2011 14:26:32 +0000

Sir,

I would like to get a franchise for a restaurant/fast food business. Can I invite a foreigner friend to invest? If so, How many percent can the foreigner own?

Roni, foreigners may not own any percentage of a small retail business such as a restaurant.

By: Frances

Frances — Fri, 02 Sep 2011 00:09:03 +0000

Dear Sir,

I have a foreign friend who has just registered a company in China. It is going to be an online school with foreign students and Filipino tutors. My questions are:

1. What would be better, establish a branch office, representative office or a domestic subsidiary corporation?
2. Tax-wise which business entity would be more beneficial?

I hope you can help me with this.

Thanks!

Frances, it depends on size and if you apply for PEZA or BOI incentives etc…

Frances

By: Enrique

Enrique — Tue, 23 Aug 2011 02:47:09 +0000

I’m a Filipino citizen and currently a permanent resident in a foreign country, I still working here in abroad and twice to three times a year I go back to Philippines. Can I appoint as Corporate Secretary?

Second question is, for example I’m a shareholder and on the same time appointed as the corporate secretary. But I became director by virtue of Deed of Assignment which means that the foreign director have entrusted to me some his of shares thru deed of assignment and he still holding shares in the company after some of shares had been transferred. Is there is violation in that corporation structure? Did I commit violation to the Philippines law being Trustee?

Enrique, the corporate secretary must be a Filipino citizen who is a resident of the Philippines. The corporate code of the Philippines requires that at least 3 of the directors be resident of the Philippines. Each director must own at least one share in the corporation. The corporate secretary does not need to be a shareholder.

By: Joan Isidra

Joan Isidra — Tue, 26 Jul 2011 15:58:49 +0000

Hi! I would like to confirm if the corporate secretary should be a stockholder? Or is the corporation required to give CS a share even if its a close/family corp and CS is not a family member or a relative, even by law?
Thanks!
Joan Isidra

Joan, the corporate secretary does not need to be a shareholder but must be a citizen and resident of the Philippines.

By: Julie

Julie — Wed, 08 Jun 2011 08:00:47 +0000

I have an American friend who wants to purchase two hectares of land and do farming crops here in the Philippines. But there are US Regulations regarding foreign investors in our country. Hoping yo can give us some pointers regarding this…

Julie, foreigners can not buy land in the Philippines. They may own up to 40% of a corporation which owns land.

By: jed

jed — Tue, 31 May 2011 04:42:36 +0000

Im an american citizen and i would like to know if i can buy an exisiting corporation and be a part owner????
It entails a Direct Sales Company

Jed, yes you can be a part owner in a direct sales corporation as the corporation is operating a wholesale business.

By: Ivan De araujo

Ivan De araujo — Tue, 09 Nov 2010 12:15:53 +0000

Dear sir I’m a Brazilian citizen and i am a Filipino permanent resident i have a Filipino company fully register with all the license completed and in good standers and i do work for another Filipino company as a consultant and other financial services,and the company that I’m selling my services to want to withhold 10% of the money owed to me and telling me that this is the law for taxes purposes in the Philippines is that truth?

Ivan, yes that is correct there is a 10% withholding tax on payments to consultants.

By: victoria

victoria — Sat, 06 Nov 2010 14:52:13 +0000

I am Filipino and presently having a small trading and hardware store business.I have a foreigner friend and he wants to be my partner in this business. I agreed with him because i also want to make my business improve and stable. Could you give me an idea how can my friend apply for business visa? If he is going to do business here how much capital does he need?
I appreciate so much if you could give me some infos. thanks

Victoria, a hardware store is a retail business. Foreigners may not own or be a partner legally in a small retail business.