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Running a business in Phil's

Discussion in 'Banking - Investing - Finances' started by Ozzyguy, Jul 24, 2020.

  1. Ozzyguy

    Ozzyguy DI Member

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    After a bit of advice on running a business from the Philippines.

    I own a small wholesale business in Australia. I ship products direct from China and Thailand to our clients in a few country's. Its a part time gig but a good retirement business. The business is 100% online, I dont need a physical address or storage.

    Currently the business is registered in Australia.

    I am considering registering this business in the Philippines and leaving any profits in the Philippines for when I retire in a few years.

    Is there any advantages in running this from the Phils? tax mainly plus getting ready for the move. Can you register a business if not a current resident?
    My wife is Filipino but Aust resident.

    Thanks,
     
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  2. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    Is this drop-shipping?

    I am not qualified to answer your question but will make the point not to put all your eggs in one basket - especially in the current financial climate. If possible, keep some resources in your home country and not move it all into a country where it could be 'borrowed' by government with no recourse to law (takes too long and aliens count for zilch). Also, the issue of currency rates is worth thinking about viz-a-viz AUD and PHP (but a complete unknown).
     
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  3. OP
    OP
    Ozzyguy

    Ozzyguy DI Member

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    Thanks for the reply, no we dont drop ship but I would if it was bigger volumes.

    We buy and sell stock in USD, the business really hasn't got a lot of assets and its a kick off from my main business that I will be selling soon. Its just a part time business to help keep me sain when I retire. :smile: If it turned to sh#t it wouldnt matter.

    I guess its really the tax side of things that would be a benefit if any.
     
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  4. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    Best never to make a business decision based on one aspect - what you gain on low taxes may be lost in other ways. Bit similar to those who remit money with a particular company because the fees are low - and don't look at the exchange rate.
     
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  5. Jens K

    Jens K DI Forum Adept

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    I wouldn't do it.

    Taxes are not particularly low here as far as I know, and the whole bureaucracy, inefficiency and corruption puts me off. Certainly there are better options if you wish to move the business out of your home country, with regard to taxes and otherwise.

    For a business not requiring any physical presence, there is really no good reason to move it here. Hong Kong comes to mind (low or even no tax if you qualify as offshore business), or Estonia, where corporate taxes aren't particularly low but you only pay them when (and if) you distribute your earnings as dividends. Estonia is exemplary when it comes to running a business completely remote, once you got their e-residency everything can be done online. Hong Kong is a bit more old school, lots of paperwork and requires having some secretary there, but there's agencies taking care of this.

    Also, as was said before, don't put all eggs in one basket. Good thing to have legs in more than one country.
     
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  6. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    I'm doing that - ain't half hurting my tackle though!
     
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