Dumaguete Info Search


G'day and 'please advise'...

Discussion in 'Banking - Investing - Finances' started by Nick, Feb 8, 2015.

  1. Canadianized

    Canadianized DI Member Showcase Reviewer

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    Well, I have run 3 different businesses here in the Philippines. One company with 25 people working for me. I think I know the lay of the land here. If you want some advice from someone who has actual experience PM me here. My business was all geared towards SEO.
     
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    Nick

    Nick DI New Member

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    Hi Folks, thanks for your responses here.

    I have found what I am looking for and am really very happy. I've engaged a local BPO and have been interviewing. I have two strong candidates and it is all looking very promising.

    And of course Dumaguete and its surrounds have been very enjoyable, needless to say we will be back here regularly.

    Thanks Candianized, sorry for the late reply and thank you for your offer. I will PM you.
     
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  3. Andrew

    Andrew DI Member Showcase Reviewer

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    Previously I established a regional office in Manila for my [UK] consultancy practice and the process was relatively straightforward. As it was a specialised investment based consultancy I found the SEC very helpful and they are used to the needs of foreign corporations. From a taxation perspective, the rules are a little daunting at first, but they are relatively competitive for the ASEAN region as a whole. A good friend of mine also ran a fully legitimate call centre (Cebu) employing circa 300 staff and again, he found the process not particularly onerous.

    It may be that for a very small start-up the paperwork is too prohibitive for many to bother with and they will simply self-employ people who are happy to work remotely , but it sounds like you are going about it the right way - so good luck!

    For .PH the most important thing is for you to be able to clearly demonstrate your business plan. If you are sincere about providing jobs and (in my case) are dealing with foreign clients and are not a threat to local businesses - then you can get your permits and be up and running in a couple of weeks, no problem.

    TIP: There are many more small start-ups registered in Labuan (tax free part of Malaysia) with limited liability and no taxation worthy of note. From there you can employ who you want to work for your company, either from offices or from home. Many Filipinos are employed by Malaysian companies, either based in Malaysia in offices OR working from home as required. As long as you can provide them with a work contract, then, as a legitimate .MY company they can have a work permit and stay in .MY working for you - just like in other places like Dubai. As these staff are not muslim .MY citizens, you can pay them what you want and are not encumbered by any Social Security obligations etc.

    There is NOTHING to stop a .PH citizen from working for an overseas company, but being based in .PH - so this is how many circumvent local obstacles. For small scale businesses this is an option - for larger corporations employing more than 15 staff, then it simply doesn't work.
     
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    Nick

    Nick DI New Member

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    Hi Andrew,

    That is some really good news, thank you. All being successful, and when I have 5-10 people engaged in the Philippines it would then be worthwhile my looking at a regional office model. I like that I can consider this as another option alongside registering a business in the Philippines and seeking locals to be 40% shareholders. I am open to employees entering into negotiations to be shareholders, in fact it is very attractive as I would be very interested in discussing profit share across the whole business and every employee in time as I believe it is an inspiring model and really does give back to the locals.

    A regional model however is very attractive as I would be saving a great deal of the cost of engaging a BPO, particularly the profit part going in most cases going outside of the Philippines, I would much prefer to see it remain in the Philippines and be utilised to better the company and create further local opportunity.

    In saying all this I am 'ecstatic' with the BPO that I have engaged, and particularly fond of the Manager there, the results thus far are excellent. I have engaged two talented young people and things are going extremely well. I couldn't be more happy.

    We have left the Philippines for a time now which will occur regularly but I feel completely secure that in the set up and the management where my staff are. It is great peace of mind, and a very good place to kick things off for my business.

    Thanks again for your feedback Andrew, I'll definitely keep this option on my radar as the business grows.

    Warm regards, Nick.
     
  5. Jack Peterson

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

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    Nick. I think you will find that the Filipino is 60% you my Friend will be the 40%
    JMHO
    JP :bag: :wink:
     
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  6. Rye83

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

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    There are businesses that foreigners can hold 100% of the shares. Certain types of export businesses and BPOs come to mind. Foreigners are also allowed to own 100% of businesses located in PEZA ecozones/buildings (unless restricted by the Foreign Investment Negative List.) PEZA Website

    PHILIPPINE FOREIGN INVESTMENTS ACT - NEGATIVE LISTS A & B - CHAN ROBLES AND ASSOCIATES LAW FIRM
    SECOND
    REGULAR INVESTMENT NEGATIVE LIST

    [Pursuant to Executive Order No. 362]
    [Effective October 24, 1996] LIST A: FOREIGN OWNERSHIP IS LIMITEDBY MANDATE OF THE CONSTITUTION AND SPECIFIC LAWSNo Foreign Equity
    1. Mass Media except recording [Article XVI, Section 11 of the Constitution; Presidential Memorandum Order dated 04 May 1994].


    2. Services involving the practice of licensed professions save in cases prescribed by law.


    • a. Engineering

      • i. Aeronautical Engineering
        ii. Agricultural Engineering
        iii. Chemical Engineering
        iv. Civil Engineering
        v. Electrical Engineering
        vi. Electronics and Communication Engineering
        vii. Geodetic Engineering
        viii. Mechanical Engineering
        ix. Metallurgical Engineering
        x. Mining Engineering
        xi. Naval Architecture and Marine Engineering
        xii. Sanitary Engineering b. Medical and Allied Professions

        • i. Dentistry
          ii. Medical Technology
          iii. Midwifery
          iv. Nursing
          v. Nutrition and Dietetics
          vi. Optometry
          vii. Pharmacy
          viii. Physical and Occupational Therapy
          ix. Radiologic and X-ray Technology
          x. Veterinary Medicine c. Accountancy
          d. Architecture
          e. Criminology
          f. Chemistry
          g. Customs Broker
          h. Environmental Planning
          i. Forestry
          j. Geology
          k. Interior Design
          l. Landscape Architecture
          m. Law
          n. Librarianship
          o. Marine Deck Officer
          p. Marine Engine Officer
          q. Master Plumbing
          r. Sugar Technology
          s. Social Work
          t. Teaching
          [Article XIV, Section 14 of the Constitution; Section 1 of R. A. No. 5181]
        3. Retail Trade [Republic Act No. 1180]
        4. Cooperatives [Chapter III, Article 26 of R. A. No. 6938]


        5. Private Security Agencies [Section 4 of R. A. No. 5487]

        6. Small-scale Mining [Section 3 of R. A. No. 7076]

        7. Utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic zone [Article XII, Section 2 of the Constitution]

        8. Ownership, operation and management of cockpits [Section 5 of Presidential Decree No. 449]

        9. Manufacture, repair, stockpiling and/or distribution of nuclear weapons [Article II, Section 8 of the Constitution]

        10. Manufacture, repair, stockpiling and/or distribution of biological, chemical and radiological weapons [Various treaties to which the Philippines is a signatory and conventions supported by the Philippines )1

          • _______________________
            [1/ Domestic investments are also prohibited (Article II, Section 8 of the Constitution; Convention/Treaties to which the Philippines is a signatory)]
            _______________________
        Up to Twenty-Five Percent (25%) Foreign Equity
        11. Private recruitment, whether for local or overseas employment [Articles 27 of Presidential Decree No. 442]
        12. Contracts for the construction and repair of locally-funded works except:

        • a. Infrastructure/development projects covered in Republic Act No. 7718, also known as the Expanded BOT Law; and
          b. Projects which are foreign-funded or assisted and required to undergo international competitive bidding [Commonwealth Act 541 as amended by Presidential Decree No. 1594; Letter of Instructions No. 630; Republic Act No. 7718]
        Up to Thirty Percent (30%) Foreign Equity
        13. Advertising [Article XVI, Section 11 of the Constitution]
        Up to Forty Percent (40%) Foreign Equity
        14. Exploration, development and utilization of natural resources (Article XII, Section 2 of the Constitution)2

          • _____________
            [2/ Full foreign participation is allowed through financial or technical assistance agreement with the President (Article XII, Section 2 of the Constitution)]
            ___________________
        15. Ownership of private lands [Article XII, Section 7 of the Constitution; Chapter 5, Section 22 of Commonwealth Act No. 141]
        16. Operation and management of public utilities [Article XII, Section 11 of the Constitution; Section 16 of Commonwealth Act No. 146]


        17. Ownership/establishment and administration of educational institutions [Article XIV, Section 2 of the Constitution]

        18. Engaging in the rice and corn administration [Presidential Decree No. 194]

        19. Financing companies regulated by the Securities and Exchange Commission [SEC] [Section 6, Republic Act No. 5980]

        20. Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municipal corporation [Republic Act No. 5183]

        21. Contracts for the construction of defense-related structure [e.g., land, air, sea and coastal defense, arsenals, barracks, depots, hangars, landing fields, quarters, hospitals] [Commonwealth Act No. 541]

        22. Project proponent and facility operator of a BOT project requiring a public utility franchise [Article XII, Section 11 of the Constitution; Section 2(a) of R. A. No. 7718]

        23. Private domestic and overseas construction contracts [Republic Act No. 4566; Section 14 of the Constitution]



        LIST B:chanroblesvirtuallawlibraryFOREIGN OWNERSHIP IS LIMITEDFOR REASONS OF SECURITY, DEFENSE, RISK TO HEALTH AND MORALSAND PROTECTION OF SMALL AND MEDIUM-SCALE ENTERPRISESUp to Forty Percent (40%) Foreign Equity
        1. Manufacture, repair, storage, and/or distribution of products and ingredients used in the manufacture thereof requiring Philippine National Police [PNP] clearance:

        1. a. Firearms [handguns to shotguns], parts of firearms and ammunition therefor, instruments or implements used or intended to be used in the manufacture of firearms
          b. Gunpowder
          c. Dynamite
          d. Blasting supplies
          e. Ingredients used in making explosives:

          1. i. Chlorate of potassium and sodium
            ii. Nitrates of ammonium 4vxc & barium, copper [11], lead [11] calcium and cuprite
            iii. Nitric acid
            iv. Nitrocellulose
            v. Perchlorates of ammonium, potassium and sodium
            vi. Dinitrocellulose
            vii. Glycerol
            viii. Amorphous Phosphorus
            ix. Hydrogen Peroxide
            x. Strontium Nitrate Powder
            xi. Toluene
          f. Telescopic sights, sniperscope and other similar devices [Republic Act No. 7042]
        2. Manufacture, repair, storage and/or distribution of products requiring Department of National Defense [DND] clearance:

        1. a. Guns and ammunition for warfare
          b. Nuclear weapons and ordnance
          c. Military ordnance and parts thereof [e.g., torpedoes, mines, depthcharger, bombs, grenades, missiles]
          d. Gunnery, bombing and fire control systems and components
          e. Guided missiles/missile systems and components
          f. Tactical aircraft (fixed and rotary-winged), components and parts thereof
          g. Space vehicles and component system
          h. Combat vessels (air, land, naval) and auxiliaries
          i. Weapons repair and maintenance equipment
          j. Military communications equipment
          k. Night vision equipment
          l. Stimulated coherent radiation devices, components and accessories
          m. Biological warfare components
          n. Armament training devices
          [Republic Act No. 7042, as amended by R. A. No. 8179]
        3. Manufacture and distribution of dangerous drugs [Republic Act No. 7042, as amended by R. A. No. 8179]
        4. Sauna and steam bathhouses, massage clinics and other like activities regulated by law because of risks they may impose to public health and morals [Republic Act No. 7042, as amended by R. A. No. 8179]


        5. Other forms of gambling, e.g., race track operation; racehorse ownership/importation [Republic Act No. 7042, as amended by R. A. No. 8179]

        6. Domestic market enterprises with paid-in equity of less than the equivalent of US$200,000.00 unless they involve advance technology or they employ at least fifty [50] direct employees, the minimum paid-in capital will be reduced to US $ 100,000.00. [R. A. 7042, as amended by R.A. 8179]

    Note that there are certain industries that do limit foreign ownership to less that 40 percent as well.
    :wink:
     
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