How to start business in Dumaguete?

No not at all they are the smartest people on the planet, that is very common knowledge just ask any expat.

 

I'm pretty sure you can't work as a sole proprietor. You own a business through shares, which means you have to get a corporation. And that doesn't give you the right to work for the company. You're just a majority owner.

Edit:

Again, you really just need to get a lawyer. Many foreigners here do the legwork on their own, but that's usually for very small businesses they setup for their family. If you see a foreigner behind a bar here, it's the wife who owns the business. I don't know how the government draws the line for actually working, but the laws aren't well enforced here. Generally you have to get someone's attention to have them go out of their way to mess with you.

 

You're being sarcastic I'm sure.
But they actually are some of the smarter people I know. Much smarter than many Westerners. In fact, here in the States, Filipinos are all wealthy people with really good jobs.
The Filipinos that are in PI are not stupid people at all. They are ignorant, but that doesn't mean they are stupid. There is a difference.

 

Thank you for the constructive advice.

After doing some research I have learned that the terminology can be confusing.

“Temporary visitor’s visa” is the official name of what is casually referred to as a tourist visa. Although the temporary visitor’s visa does not allow the visitor to work, it does allow the visitor to attend business meetings. This is the visa that business people use to come to the Philippines temporarily. It is also used by tourists.

No matter the name, a visa does not entitle a person to work in the Philippines. Visas are issued by the Bureau of Immigration (“BI”) and only allow a person to stay in the Philippines.

Working in the Philippines is regulated by the Department of Labor and Employment (“DOLE”). They issue an Alien Employment Permit (“AEP”) to foreigners.

So a “Pre-arranged Employment Visa (9G)” issued by the BI does not allow a foreigner to work in the Philippines. It only allows them to stay in the Philippines. Pre-arranged employment is the reason they are issued the visa by the BI to stay in the Philippines. To work in the Philippines a visa holder must get an AEP.

Also a foreigner with a Special Resident Retiree's Visa (“SRRV”) can work if they get an AEP.

A foreigner who marries a Philippine citizen can get a Non-Quota Immigrant Visa and then get an AEP with minimal requirements.

Fundamentally the goal is to protect Filipinos in the domestic market from having to compete with foreigners.

From DOLE

Foreign nationals excluded from obtaining an AEP are those providing/supplying services in the country but their employers are located abroad or those without employer - employee relationship in the Philippines and therefore not covered by Article 40 of the Labor Code.

 

When I worked here for an US corporation I was required to have a work permit visa, even though I was married.

 

Hello @TheDude, Thank you for your comments.

Nope. You do not have to have a corporation. A business can be owned as a sole proprietorship, partnership or corporation.

https://elegal.ph/guerilla-guide-for-startups/index.php/ii-business-organizations/

This part is true. Owning a corporation or being a board member does not give you the right to work for a company.

Are there any lawyers you would recommend for this?

Marriage and operating a bar are different than what I am planning to do.

The bar is a domestic enterprise and competes with other bars owned by Filipinos. This would be covered by the negative list discussed in a prior thread. It would require minimum capital to be owned by a foreigner. If it was not specifically listed on the negative list, then it would require USD200,000 minimum capital to be owned by a foreigner.

Foreign ownership is a moot issue here because in your post the bar is owned by the wife. Things get murky with family working for businesses owned by a close family member. They are not usually considered employer - employee relationships. For example working family members are usually exempt from minimum wage requirements.

But again this is moot because the husband can get a non quota immigrant visa. Which either allows him to work or he can get an AEP easily.

Often, there is conflict in doing business. I will be interacting with Filipinos either as a contractor or as an employee to get work done. It is inevitable that someone will get their feelings hurt and go to the authorities.

 

Hello @PatO, Thank you for your comment.

This does not give us enough information to be relevant to this post but thanks again for your comment. At a minimum, we need to know:

1) A list of the names of the visas and the names of the permits you were required to have.
2) As a result of your marriage, did you already have a non-quota immigrant visa?
3) What type of work were you doing?
4) Where did the US company sell its product?
5) Did the company have a local presence and where were you paid? (US or Philippines)

 

Perhaps you could have added to the poster "But thanks anyway for your help".

 

The context of the part you quoted was "foreigner without a work permit owning a business."

Sole Proprietorships exist in the Philippines, but I'm assuming (I don't know for sure) that foreigners without rights to work in the Philippines can't own one. Cases where a foreigner is limited to X% of a business would require a corporation as that's the only way to have partial ownership.

Could the right to 100% ownership allow you to setup your business as a sole proprietorship? I don't think so, but I could be wrong.

I don't, sorry. Maybe take a look around Portal West. There are a bunch of Lawyer's operating from there and a good spot to get office space if you need it.

You would be surprised with what people get away with here.

My only reason for mentioning this was that a lot of foreigners who own businesses here skirt the laws and get away with it. They do the bare minimum to get the business running, which also leaves them open to problems. Don't take the presence of foreigners running businesses here as an indication that it must be easy (everyone is doing it!)