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How to start business in Dumaguete?

Discussie in 'Dumaguete City' gestart door SkipJack, 27 jan 2019.

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HeyJoey DI Member

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TheDude zei: ↑

information from anyone other than your lawyer
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I can only agree with that,
but remember to visit multiple lawyers! Don't go with the first one!
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HeyJoey, 29 jan 2019

#11
tis me DI Member

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SkipJack zei: ↑

You are the one has has not done any research before sharing their thoughts. Your comment shows lazy ignorance. You could have simply done an Internet search on foreign owned business in the Philippines to see that I was correct. I see that your post has received up votes so there are others who think as you do.

I will explain in as simple terms as possible so that you may understand.

The Foreign Investments Act of 1991 states:

As a general rule, there are no restrictions on extent of foreign ownership of export enterprises.

the term “export enterprise” shall mean an enterprise wherein a manufacturer, processor or service (including tourism) enterprise exports sixty percent (60%) or more of its output, or wherein a trader purchases products domestically and exports sixty percent (60%) or more of such purchases;

To understand the law you need to understand some business terminology:

“Foreign ownership” and “foreign equity” is the percentage ownership of a business by foreigners.

“Paid-up capital” is the amount of money an investor invests into the business.

The foreign investment negative list (“FINL”) is a list of activities that the Philippine government exerts additional regulation. Except for the ownership of cockpits, these activities fall into two types of activities. Domestic market enterprises that need protection and those activities that can be dangerous to the community no matter where the product is sold. (ex: explosive manufacture, etc.)

“Domestic market enterprise” vs “export enterprise” is where the business generates its income (revenue). Both of these business enterprises are located in the Philippines. The difference is from where they generate their income. For example, the hypermart generates all of its revenue from the local Filipino population. The hypermart is a “domestic market enterprise”.

Some businesses export products like sugar. In the age of the Internet many businesses export services. Qualfon is an exporter of Filipino services. The Qualfon call center located in Dumaguete generates its revenue from sources in the US. US companies “outsource” their call center services to Qualfon in the Philippines. Qualfon is a business processing outsourcing (“BPO”) company. The Qualfon call center that is physically located in Dumaguete is an “export enterprise” because it generates its revenue from the US. Qualfon is majority owned by foreigners. The majority owner is a Mexican citizen.

Export enterprises benefit Filipinos because they bring money from foreign economies into the Philippines. They provide jobs for Filipinos without the Filipinos having to go overseas. This is much better than OFWs who have to leave their families for employment. This is very good for the Philippines and they want as much of this as possible. For this reason there is no foreign ownership restrictions on “export enterprises”. Furthermore, foreign ownership is often required because it is the foreign owners who have connection to foreign markets.

This is the end of my story because I intend to create an export enterprise that I can own 100%. I will continue so that you are fully informed.

The challenge is the protection of domestic market enterprises. Here the law tries to balance protection of Filipino business owners with the economic value of foreign investment. There is no point in trading Filipino business owners with foreign business owners without an increase in the economy. Here is where paid-up capital and the foreign investment negative list comes into play.

For example the negative list states:

No foreign equity in retail trade enterprises with paid-up capital of less than US$ 2,500,000.

This protects the local Filipino small shopkeeper from foreign competition. On the other hand 100% foreign ownership is allowed if the investment is more than US$ 2,500,000. For example, a foreigner can start a retail business located in Dumaguete that competes with the local hypermart if the foreigner invests more than US$ 2,500,000. Here the government considers the investment of US$2,500,000 valuable enough to offset the detriment of foreign competition in the domestic economy.

Filipinos are not stupid. Please make an effort to keep up.
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Filipinos are not stupid! don,t know how long you have been living under a rock but it is time to crawl out.

Laatst bewerkt door een moderator: 30 jan 2019

tis me, 30 jan 2019

#12
Jack Peterson DI Forum Luminary Highly Rated Poster SC Connoisseur Veteran Air Force

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To the OP @SkipJack This is the end of my story because I intend to create an export enterprise that I can own 100%. I will continue so that you are fully informed. (You Quote) But one Question I would ask as the Immigration law stands is what is your Status here in the Philippines?

Jack Peterson, 30 jan 2019

#13
OP

OP

SkipJack DI Senior Member

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Jack Peterson zei: ↑

To the OP @SkipJack But one Question I would ask as the Immigration law stands is what is your Status here in the Philippines?
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My original question was: "Can I start a business as a sole proprietor then petition for a work permit based on my importance to the business?"

Do you have any advice regarding visa?

SkipJack, 30 jan 2019

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Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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tis me zei: ↑

Filipinos are not stupid! don,t know how long you have been living under a rock but it is time to crawl out.
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He didn't say they were. Knock it off.
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Rye83, 30 jan 2019

#15
Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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SkipJack zei: ↑

My original question was: "Can I start a business as a sole proprietor then petition for a work permit based on my importance to the business?"

Do you have any advice regarding visa?
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If you are on a tourist visa you cannot legally work. I believe you are allowed to work on the quota and marriage visas. There are also several business/work specific visas as well but I am not familiar with them.
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Rye83, 30 jan 2019

#16
Jack Peterson DI Forum Luminary Highly Rated Poster SC Connoisseur Veteran Air Force

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SkipJack zei: ↑

Do you have any advice regarding visa?
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only that there are knock backs many times to 9a ( Tourist visa) Holder starting a business but you will need one together with these 4 Items, the DTI or Immigration Office will I would have thought been the best place to Start

Passport/Travel Document Valid for at least six (6) months beyond the intended period of stay in the Philippines;

Duly Accomplished Visa application forms;

Passport Photos (2 pieces);

Proof of bona fide status as tourist or buisinessman. maybe this page will Help you https://www.google.com/search?ei=si...0i263j0i131i67j33i22i29i30j33i160.CBETMgX138M
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Jack Peterson, 30 jan 2019

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tis me DI Member

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Rye83 zei: ↑

He didn't say they were. Knock it off.
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May I suggest you read the closing sentence in post #6

tis me, 30 jan 2019

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liannastar DI Member

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tis me zei: ↑

May I suggest you read the closing sentence in post #6
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So you are saying they ARE stupid? Because his last sentence said they are NOT stupid.
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liannastar, 30 jan 2019

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Wildlands1 DI Member Restricted Account Showcase Reviewer

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My dua ringitt; DON'T DO IT! If you "need" to start a business here, you're not ready to retire here yet. Go home, work and save, until you're financially stable w/o working.
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Wildlands1, 30 jan 2019

#20

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