When starting a business, it is very important for every investor to understand the kind of economy and market you are entering into. Populations that are consumer-driven prove to be a great market to start in. One such example is the Philippines. Most products sold and produced in the region may are traded at a competitive price. This is due to the low costs of operating a business in the Philippines, which can be attributed to the low cost of labor, raw materials, and rent in the country.
This is also particularly advantageous if you are a foreign business operator as exchange rates work in your favor. The Philippines is also a leading Hub in Asia and is a prime location for trade due to its numerous port cities, making it ideal for companies looking into business expansion, particularly in the Asia-Pacific region. Notably, most of the population can speak English as it is the primary language of instruction in schools. This makes it easy for foreign nationals to feel at ease in the country.
Considering everything mentioned above, the Philippines is a land of economic opportunity for both foreign and local investors and other business-minded persons. Moreover, it has become particularly easy to set up companies in the country in recent years. This is due to the passing of the Ease of Doing Business Act of 2018, also known as the Republic Act 11032. This new law allows for a swift and easy processing of business registration and requirements through the cutting down on red tape.
Establishing a company has never been this easy! Here are the key features of this Act that makes it convenient for both foreigners and locals alike to establish their startups:
1. Benefit from Standard Deadlines
Before this Act, business registration could take anywhere from a few days to weeks to process. This law requires that all transactions be processed on a standard deadline basis, ensuring you won’t have to wait too long for the release of pertinent documents.
2. Utilize a Single Unified Business Application Form
This law requires that only a single form be filled out for business registration and renewal. It unifies all previous forms for local business licenses, permits, clearances, authorizations, etc. This cuts back on the paper chase, allowing you to save time and deal with less complexities. Take a look at this form example from the Quezon City LGU.
3. Enjoy Peace of Mind with the Anti-corruption Policy
This country has a strict anti-corruption policy ensuring that all applicants are treated fairly. Applicants will be identified and dealt with by their case number. This means people who hold office or in a position of power will not give large organizations or famous personalities priority over small enterprises. You can rest at ease knowing that everyone is on equal footing. Moreover, no applicant is allowed to deal with fixers or pay inside personnel to make the papers move at a faster pace.
4. Experience Less Complications with a One-stop-shop
All applications will be processed in one single facility. All zoning offices, business license and permit offices, treasury office, and the Bureau of Fire Protection must be situated in one location for easy access. This cuts back on your travel time, effort, and gas money to fix different requirements, allowing you to save your limited resources.
5. Assure Accountability for Government Officials and Employees
This law ensures that government offices comply with anti-red tape policies and discrimination against applicants. Such acts that constitute a violation are:
– Refusal of an applicant
– Imposing additional fees and requirements that are not listed on the Citizen’s Charter
– Working with fixers
– Inability to meet deadlines
With these features in place, both expats and local do not have to worry about getting taken advantage of by government officials and employees.
Final Word
The Ease of Doing Business Act of 2018 allows for easy processing of business registration and licensing for anyone who wants to establish business operations in the Philippines. This makes the country more accommodating for both foreign and local businesspeople. Since it strives hard to do away with the complexities of getting the necessary permits, you can open your doors to clients a lot sooner than you think.
Suppose you are looking o register your business. In that case, you may look up the requirements and registration process at your Regional District Office website, or you may search the Citizen’s charter of your Local Government. For any additional assistance, you may also contact our team to help you secure pertinent documents. Apart from accounting and bookkeeping, we can guide you through the business registration process and help you with necessary tax requirements. We offer free 30-minute consultations to help you jump-start the process. It’s now time to make your business plans a reality.
