⌛ Ghosting a business is illegal, but if you are or intend to please read this

Doing business in the Philippines is not like doing business in your homeland and as a foreign visa holder you are completely restricted to the rules of the Visa. Even if you have residential status there is restriction in any business venture and how much percentage that you can own of any business you may wish to start or invest in.

Some good reading..

Philippines : Gov.Ph : Frequently Asked Questions : Philippines

Starting a Business in Philippines Details - Doing Business - The World Bank Group

On this forum I have seen many a foreigner showing that they are running a business that is in their spouses or live in name. In fact they promote a business as they actually own it or take part in it. It may not be a good policy to do so as unfortunately web documentation could be used in evidence that they are illegally using a ghost partner to illegally run a business in the Philippines.

We know that laws are broken here each and every day and normally a blind eye is cast or the laws are not upheld. The main problem of running a business illegally is that if you get in an argument with a Filipino national you can end up loosing your business or your investment especially if your ghost has not registered a business permit and not paying the correct taxes to BIR. This grey area of business that is actually very active within the Philippines. Where as even an embittered former employee can cause you great trouble, especially if the foreign illegal business owner, sack the disgruntled employee personally.

Yes these illegal businesses can flourish for many years businesses profits can be great and the foreigner can lead a very good life. Unknowing the true threat and normally its something very small and petty the knocks over the apple cart, it does not matter whom you know or even bribe the law is jacked up against your illegal enterprise.

Since being here in the Philippines I have seen and read about Ghosted businesses being folded down and foreigner loosing all their investment or a good tidy sum and being black listed told to leave or deported.

I have wrote this, because a gentleman that was running a ghosted business spilt out much hatred about Filipino’s because his ghosted business had been folded down by the owner of land he had rented. He made it sound like the owner of the land and property was a crook and there crooked associates where ganging up on him to pinch everything he owns. That all Filipino’s lie when they open their mouths, this of course was a bitter response to what had happen after an argument over a electrified security fence and his misunderstanding of his lease agreement and not realizing the local feelings about electric fences even if they are not carrying a life threatening electric charge. Local citizens had obviously complained to the landowner worried about their children

If this guy had simply removed the fence at the request of the land owner, his woes would have gone away and his business would of flourished as blind eyes would not of opened.

The problem is he now is causing the vendetta to escalate and because of his stubbornness this path will see him blacklisted and deported. The moral is if your running a ghosted business take care be political with your neighbors and landowners, ensure your ghost has a business permit and paying the correct taxes and most of all keep a low profile don’t be seen getting involved in the day to day business and telling people that you are the owner. If things go wrong it’s part of the gamble and you can only blame your self.

By and By renting properties is a good little earner but not having a business permit or paying taxes is a sin, even made worse by the fact that a foreigner in a poverty ridden country is not paying taxes to help improve the infrastructure and most complain about the state of the roads, education etc. tut, tut. Yes I know some wealthy foreigners that do just that perhaps they are copying some of the rich Filipino’s that are also breaking the BIR tax laws. Yes I know some of them that do just that.

 

well said jesusitshot...

 

Thanks daff. Expat's have to be careful and take care my partner runs some small businesses of which I do not get involved in other than ensuring she has kept things legal of which I must say she has.

I myself believe its best to Soho keeping my own business matters well away from the Philippines. I just like to enjoy this place before I move on else where

I get bored in staying on one Island or in one country. But I have made good friends here and met interesting people and learnt a great deal about the filipino's their culture and ways and that has been more of a good experience than a bad.

I have done things here that have caused problems to fall on my shoulders and they have been the cause of my own stupid arrogant ways and a thing of the past.

If what I have learnt rubs off on others then I would be very pleased. The guy who gave me a sorrow story was bitter and could not see the facts that his arrogance had caused the problem he is in and seemingly thought that I having not been here as long as he had could not give the correct advice.

He did not even tell me about the electric fence of which has been a main cause of all his misery I found out about that here on this forum. Before that I was full of more sympathy than I was after seeing the truth of the issue. I still sympathise but see his mistake of not looking before he leapted.

Hopefully my post will make others in business or going into business here think and be aware of the pit falls of illegally ghosting their business. Keep the blind eyes closed and those that can do you harm sweet.

 

GMA signs EO launching job generation visa

President Gloria Macapagal-Arroyo signed today an executive order that would allow foreigners to stay in the Philippines indefinitely provided they will employ at least 10 Filipinos.

The President signed the Executive Order (EO) No. 758 during a brief program held this morning at the Malacanang Rizal Hall and attended by Immigration Commissioner Marcelino Libanan, Trade and Industry Secretary Peter Favila, Justice Secretary Raul Gonzales, Special Envoy Francis Chua, and Shameem Qurashi, chairman of the Philippine Association of Multi-National Council Regional Headquarter, Inc.

Libanan, who thanked the President for signing EO No. 758, said the President’s action is timely because the launching of the job-generation visa would mitigate the negative impact of the current economic meltdown on the Philippine Economy.

EO No. 758, which has the effect of a law, prescribes guidelines for the issuance of a special visa to non-immigrants for employment generation.

Libanan said in an interview after the signing of the executive order that it would be easier now for foreigners to do business in the country as EO No. 758 waives the requirements for visa applications and encourages them to bring their investment into the country.

Well theres a new possible answer to the problem for some of the wealthy foriegners.

 

Your advice is on point and well written.

The problem is in the arrogance that you mentioned earlier. Some folks have to learn the hard way unfortunately the "hard way" can literally ruin them.

It's been said that "pride" is the only sin the devil won't convict you of.

I have little sympathy for folks who've been told the rules of the game and still think they can get over. In the Philippines the cards are stacked against you.

I've always thought owning some sort of business that kicks off income from,in my case, the United States is the wisest move. The foreigners I know personally who live successfully in the Philippines all have one thing in common.

Their money isn't tied to the Philippine economy or laws.


Don

 

Thanks and yes I have noticed that however there are some success stories of businessmen doing well here such as the david hair saloons owner. I have seen a few smaller successes in Dumaguete however one never knows what the actual situation is. But I would give the same causion to anybody wanting doing business anywhere in the world for the first time, take out the gamble and research everthing prior to paying one dime.

Business is a gamble and its certainly made worst if you do not know the law and the pitfalls and that someone is always out to out do you or cause you a problem if you get anything wrong. If you don't follow the law then be prepared to lose money or the complete business or worst go to jail (or worst still be deported if your business is in the philippines).

What anoys me is those foriegners that live in a foriegn country where poverty is an issue and the infrastructure is poor do not pay or register their business for tax. Those people when caught deserve the punishment and to lose all their savings.

 

I was trying not to say that but I whole heartedly agree.


Don

 

If you check the Forbes list of richest Filipino's you will find many are Chinese born, so could be considered successful foreign business men.

Got to say what I read about the law and procedures, it is not very inviting to start a legit business and invites fraud. Considering the legal system favouring Filippino's, I don't really see it as an investment friendly environment.

I doubt there are many westerners around for other reasons than a Filipina partner and they should just be given residence status, like their partners would in their country of origin, it would solve a lot of problems.

 

This thread should be read in conjunction with a similar one entitled "Gold Discovered in Dumaguete". If the linkworks, you can go to it here:

http://www.dumagueteinfo.com/board/general-chat/gold-discovered-dumaguete-3799.html

 

Ghosting

It is not illegal for a Philippine citizens to own a business even if their spouses are foreigners. The problem is the stupid foreigners want to brag about it on a public forum. Go figure, they want to shoot themselves in the foot, not only themselves but everyone else also. Maybe they are into self flagellation also Cheers :D