# Visa and legal requirements for Tour Operators



## ExpatMRTW (Apr 3, 2016)

Hi there,

would anyone have any knowledge about general work visa and legal entity requirements for local tour operators regarding catered tours across Phils for US and European customers?

This would be a very small business setup with 3 to 5 local employees plus two non-Filipino partners. The non-Filipinos do not posses a work visa for Phils currently.

Questions are those:

1. Can I source the tours outside of Phils (through a US registered entity) and simply tour tourists around by traveling with them to Phils on tourist visa (enter/leave within 30 days)?

2. Would (should?) I have to setup a local Phils entity to tour tourists?

3. Would a business size of 3-5 local employees suffice to get a work permit for the non-Filipono partners?

4. any culprits for such setup (tour operations)?

Any pointers and feedback is greatly appreciated?

Thanks


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## Asian Spirit (Mar 1, 2010)

The only way to get accurate/legal information is to contact the Philippine Dept of Labor.
With govt agencies here emails usually go unanswered so would suggest making direct telephone contact with them.


jet Lag


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## ExpatMRTW (Apr 3, 2016)

Jet Lag said:


> The only way to get accurate/legal information is to contact the Philippine Dept of Labor.
> With govt agencies here emails usually go unanswered so would suggest making direct telephone contact with them.
> 
> 
> jet Lag


That's great info - thank you!

Sent from my SAMSUNG-SM-G930A using Tapatalk


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## Asian Spirit (Mar 1, 2010)

ExpatMRTW said:


> That's great info - thank you!
> 
> Sent from my SAMSUNG-SM-G930A using Tapatalk


Very welcome. I just hope they can give you solid info and not the run around.

Jet.


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## Gary D (Oct 28, 2013)

ExpatMRTW said:


> Hi there,
> 
> would anyone have any knowledge about general work visa and legal entity requirements for local tour operators regarding catered tours across Phils for US and European customers?
> 
> ...


If set up as a legal business in the Philippines however many non filipino partners you have the total amount of the business they can own between them is 40%. The remaining 60% needs to be filipino owned.


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## simonsays (Feb 11, 2009)

Concise replies:



ExpatMRTW said:


> would anyone have any knowledge about general work visa and legal entity requirements for local tour operators regarding catered tours across Phils for US and European customers?


There are a few large US/European tour group operators but all seem to be a bit skeptical about the PH market - read below. The larger groups are Korean, Japanese and Chinese, who know which places to avoid, so it is, say, Korea to Boracay, and back to Boracay. They have their own support system and basic infrastructure in place, and / or partnered with the right people, to avoid any headache. 



ExpatMRTW said:


> This would be a very small business setup with 3 to 5 local employees plus two non-Filipino partners. The non-Filipinos do not posses a work visa for Phils currently.


Getting work visa for the non-Filipinos is gonna be PITA. That's what stops most operators going full fledged.



ExpatMRTW said:


> 1. Can I source the tours outside of Phils (through a US registered entity) and simply tour tourists around by traveling with them to Phils on tourist visa (enter/leave within 30 days)?


It is illegal, and as long as nobody knows, nobody complains. I know a few Malaysians and Singaporeans freelancing, and all is well as long as nobody finds the foreigners edging out the locals. So either give a share to the undeserving locals who got wind of the money, or end up being deported, however grey your case may be.

Plus unless you know the native lingo, you are gonna stand out like a sore thumb.



ExpatMRTW said:


> 2. Would (should?) I have to setup a local Phils entity to tour tourists?


Yes, to operate legally, you would have to do that properly.



ExpatMRTW said:


> 3. Would a business size of 3-5 local employees suffice to get a work permit for the non-Filipono partners?


Getting a Work permit involves a) A local company with B) a reasonable capital and C) A trusted local partner.

As mentioned, look up the 60/40 rule. Add the need for a good partner, you can operate without any problem. Or you gonna have endless hurdles.

The number of locals vs foreigners don't matter, as, per DOLE, the applicants' details are published in the news paper and if any local objects, you don't get your pass. 



ExpatMRTW said:


> 4. any culprits for such setup (tour operations)?


To learn the market, the better option is to partner with a big guy, and learn the ropes of the trade. And then see if it worth while to set up shop on your own.

FYI, the victims here were part of an organised tour : https://en.wikipedia.org/wiki/Manila_hostage_crisis


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