# Business allowed for expats in the Philippines - tour guide and bar owner



## Binno (Mar 18, 2015)

Hello to everybody,
I have a question concerning the list of activities prohibited to foreigners in the Philippines. Is it possible to be a tour guide for a foreigner or this job is for filipino nationals only? 
Where can I find reliable information on the lists of activities allowed/prohibited to the foreigners?
Thank you


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## Asian Spirit (Mar 1, 2010)

Binno said:


> Hello to everybody,
> I have a question concerning the list of activities prohibited to foreigners in the Philippines. Is it possible to be a tour guide for a foreigner or this job is for filipino nationals only?
> Where can I find reliable information on the lists of activities allowed/prohibited to the foreigners?
> Thank you


Hi Binno and welcome,

So far as I know, there is not a "set list" of jobs that you can not take or do.
A good rule though is that a foreigner can not work at a job that a Filipino can do. So I'm going to say employment as a tour guide would not be possible.

If you want to work as a supervisor at a call center or even a bar manager, then those types of employment are open. as those are the easiest to find.

At the same time, you are required to have a work permit for any job you have and most often times the employer will promise this for you and then not follow through.



Best Of Luck


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## Binno (Mar 18, 2015)

Hello Jet Lag, thank you for the welcome and the advice
I know that in the Philippines there is a sort of licence to be a tour guide, I noticed that curiosly (this is very strange to me) few people organize guided tours and very few in the way we have in Europe. As far as I noticed in Bohol Island, it is very uncommon to see guided tours of the old spanish churches and buildings, and even of the forests where they have tarsiers or of the beaches. Scuba diving instead is well organized. As for a job as a bar manager, my understanding is it is not easy to get a stable work permit. Do you think it would be easier to start a bar business on my own or are there any restrictions?


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## Asian Spirit (Mar 1, 2010)

Binno said:


> Hello Jet Lag, thank you for the welcome and the advice
> I know that in the Philippines there is a sort of licence to be a tour guide, I noticed that curiosly (this is very strange to me) few people organize guided tours and very few in the way we have in Europe. As far as I noticed in Bohol Island, it is very uncommon to see guided tours of the old spanish churches and buildings, and even of the forests where they have tarsiers or of the beaches. Scuba diving instead is well organized. As for a job as a bar manager, my understanding is it is not easy to get a stable work permit. Do you think it would be easier to start a bar business on my own or are there any restrictions?


The Bicol area is somewhat off the beaten track so getting enough business down that way could be a problem, especially during the rainy season from June to December.

Opening a new bar/restaurant is possible. But again, it would need to be in an area that can easily support the business and where you would not have supply delivery issues.

Unfortunately the Philippines is a very self protectionist country. Any business that you start, must be *majority owned* by at least one (1) Filipino citizen. That means that no matter how much you invest in the place, you own just 49% of nothing if a disagreement takes place with the majority owner.

Only way to possibly come out ahead is if you are married to a local long enough to know the marriage is going to last. Otherwise the chances of winning would be better on a card table in a Las Vegas casino.


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## Binno (Mar 18, 2015)

The place I would choose is Panglao Island. I am going to marry to a filipina...
Another last question, if I am not bothering you. Let us say you have 20.000 USD and you make an agreement with your own wife or with any other filipino national. Based on this agreement the filipino national is borrowing that amount from you with no interest but they are supposed to pay it back after some years. In this case, they would be the owners of the land/bar etc. but in case you break up they are supposed to give you the money back. Is this possible? Is it common to start up a business with this kind of agreement?
Thanks for again for your kind answers


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## Asian Spirit (Mar 1, 2010)

Binno said:


> The place I would choose is Panglao Island. I am going to marry to a filipina...
> Another last question, if I am not bothering you. Let us say you have 20.000 USD and you make an agreement with your own wife or with any other filipino national. Based on this agreement the filipino national is borrowing that amount from you with no interest but they are supposed to pay it back after some years. In this case, they would be the owners of the land/bar etc. but in case you break up they are supposed to give you the money back. Is this possible? Is it common to start up a business with this kind of agreement?
> Thanks for again for your kind answers


Questions are never a problem. That's what the site is for. Considering that here in the Philippines, the law, any law, means almost nothing. If there is any enforcement of laws here it would most likely be in favor of the Filipino.

I'm not trying to paint a dismal picture but in all likelihood, you are looking at a loose-loose situation. It is horribly risky even if you knew your wife for a very long time.

I am going to venture a guess here and say I think you have found someone online and are planning a marriage on that.
Mainly for for protection and safety of your own life, you really ought to spend as much time as possible reading most all the threads on this site and others as well before making any firm commitment.

Take several trips here. Meet this lady and spend as much time as possible each time before tying the knot.

No matter what they (the ladies) tell you; no matter what they say. Often times you are being taken for a ride that can in the end cost you your life.
Some of these ladies that are online and getting married, are already married to a local and just ready to take you for all they are able.

I know it sounds bad but this is not your home country and is likely unlike any place or people you have dealt with in the past.

I'm married and have lived here in the Philippines for 12 years. With that, I know what I am telling you is true.
In short order, there will likely be others on the site that will chime in with just about the same assessment.

I hope it all turns out well for you and wish you the very best of luck. Just take your time. Lots of time to be sure first.



Jet Lag


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## Binno (Mar 18, 2015)

Jet Lag,
currently I live in Europe and I have been living for some years with my girlfriend. I already traveled in the Philippines, I know it is very risky to start a business there and in fact most of the foreigners who start a business are not successful. The point is in my opinion the time of Europe is over. Maybe it is different in the US, but here making business is almost as risky as in the Philippines. Except for Scandinavia, maybe Switzerland and some parts of Germany, the rest of the continent has become a place where doing business is almost as risky as in the Philippines and also less exciting. It might be things will recover, it might be not. That is why I am already considering to move to the Philippines. Thank you again for your helpful advice


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## Asian Spirit (Mar 1, 2010)

Binno said:


> Jet Lag,
> currently I live in Europe and I have been living for some years with my girlfriend. I already traveled in the Philippines, I know it is very risky to start a business there and in fact most of the foreigners who start a business are not successful. The point is in my opinion the time of Europe is over. Maybe it is different in the US, but here making business is almost as risky as in the Philippines. Except for Scandinavia, maybe Switzerland and some parts of Germany, the rest of the continent has become a place where doing business is almost as risky as in the Philippines and also less exciting. It might be things will recover, it might be not. That is why I am already considering to move to the Philippines. Thank you again for your helpful advice


Yea, I agree on the business side of our two countries. I haven't been back to the States since 2003 but it also seems to be on a downhill slide. I suppose it will turn around again but who knows how soon.

It's good that you are and have been with your girlfriend for some time already as that helps a lot.

The Philippines is primarily a good place for retirement rather than working. There are some large companies such as hotels that are based in other countries. Opening a "branch" of their business here does not require the 60-40 division of ownership so that might be an avenue to look into as well. 

At least living over here, the life is slower and there are a million places to go and things to do. Plus there is never any cold winter weather.



Jet


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## Gary D (Oct 28, 2013)

Binno said:


> The place I would choose is Panglao Island. I am going to marry to a filipina...
> Another last question, if I am not bothering you. Let us say you have 20.000 USD and you make an agreement with your own wife or with any other filipino national. Based on this agreement the filipino national is borrowing that amount from you with no interest but they are supposed to pay it back after some years. In this case, they would be the owners of the land/bar etc. but in case you break up they are supposed to give you the money back. Is this possible? Is it common to start up a business with this kind of agreement?
> Thanks for again for your kind answers


You would have a long que of localls to take you up on your kind offer. The chance of ever seeing your money back are very slim to zero. Taking money from foreigners is a national sport here.


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## Gary D (Oct 28, 2013)

Binno said:


> Hello Jet Lag, thank you for the welcome and the advice
> I know that in the Philippines there is a sort of licence to be a tour guide, I noticed that curiosly (this is very strange to me) few people organize guided tours and very few in the way we have in Europe. As far as I noticed in Bohol Island, it is very uncommon to see guided tours of the old spanish churches and buildings, and even of the forests where they have tarsiers or of the beaches. Scuba diving instead is well organized. As for a job as a bar manager, my understanding is it is not easy to get a stable work permit. Do you think it would be easier to start a bar business on my own or are there any restrictions?


There are many guided tours available on Bohol, any hotel can arrange one. We had a very good day tour around the Spanish churches, lomboc river for lunch and tarsiers sanctuary when we visited two years ago.


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## Binno (Mar 18, 2015)

Gary D said:


> You would have a long que of localls to take you up on your kind offer. The chance of ever seeing your money back are very slim to zero. Taking money from foreigners is a national sport here.


Thank you also
Anyway, I still believe there must be a way to get around to it. There is always a way. Perhaps lending money with no interest on a bank account with a guarantee on first demand. Or something similar. This is a matter for an expert attorney


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## Gary D (Oct 28, 2013)

Binno said:


> Thank you also
> Anyway, I still believe there must be a way to get around to it. There is always a way. Perhaps lending money with no interest on a bank account with a guarantee on first demand. Or something similar. This is a matter for an expert attorney


I just don't see how you would ever inforce it.


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## Binno (Mar 18, 2015)

In Thailand there are similar restrictions. There are several ways to get around them: creating companies with local nominees, leasing land from a Thai wife, etc. Anyway I have no experience of that, and it is probably true that none of these ways is really safe


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## Gary D (Oct 28, 2013)

Binno said:


> In Thailand there are similar restrictions. There are several ways to get around them: creating companies with local nominees, leasing land from a Thai wife, etc. Anyway I have no experience of that, and it is probably true that none of these ways is really safe


In the Philippines creating a company with local nominees would be considered as a dummy coloration, there's a law against that. A foreigner is only allowed 40% of a company and legally only allow to front 40% of the capital.

The family code considers a man and wife to be a single entity so you can't lease from your wife.


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## Nickleback99 (Aug 6, 2011)

Binno said:


> Thank you also
> Anyway, I still believe there must be a way to get around to it. There is always a way. Perhaps lending money with no interest on a bank account with a guarantee on first demand. Or something similar. This is a matter for an expert attorney


An "expert attorney" in the PI will likely be an expert on separating You from Your money.


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## cvgtpc1 (Jul 28, 2012)

Gary D said:


> In the Philippines creating a company with local nominees would be considered as a dummy coloration, there's a law against that. A foreigner is only allowed 40% of a company and legally only allow to front 40% of the capital.
> 
> The family code considers a man and wife to be a single entity so you can't lease from your wife.


Another way of looking at is they might be doing foreigner's a favor as that's the limit they can lose instead of losing 100%, but then I guess the 40% is 100% to the foreigner lol


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## esv1226 (Mar 13, 2014)

If you want to start a small business, invest what you can afford to lose. If project 1 fails, you have options. If successful, you can expand. Even after careful considerations, the risks are great. Good luck. You may need it.

There are successful businesses started by foreigners - from what I see and hear, they are doing well.


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## M.C.A. (Feb 24, 2013)

*Business ventures in the Philippines*



Binno said:


> In Thailand there are similar restrictions. There are several ways to get around them: creating companies with local nominees, leasing land from a Thai wife, etc. Anyway I have no experience of that, and it is probably true that none of these ways is really safe


There's a guy on YouTube, he's an Australian and has been here for a couple decades and he owns business, property and condominiums he's really on top of many things and has has several stories/video's to share about business in the Philippines, his name is Sean ResortRebel it could be a game changer and an eye opener for you. 

Watch out of for lawyers and professionals.


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## Cebu Citizen (Dec 13, 2013)

Binno said:


> Hello to everybody,
> I have a question concerning the list of activities prohibited to foreigners in the Philippines. Is it possible to be a tour guide for a foreigner or this job is for filipino nationals only?
> Where can I find reliable information on the lists of activities allowed/prohibited to the foreigners?
> Thank you



I have a foreigner friend who does this, (tour guide service here in the Philippines), but he does it for cash payments under the table and does not actually run a business from an office or anything. He caters primarily to rich extreme outdoor thrill junkies. He has been doing this work for about twelve years now and makes a decent living at it, or at least he always seems to have money in his pocket and pays all of his bills on time. He lives quite comfortably from the appearance of his nice home and vehicles. I have always heard the same thing that was already pointed out...a foreigner cannot, (or is not supposed to), hold a position of employment here in the Philippines that can be held by a Philippine National..."unless" you have very specific and expert skills that are in high demand. The Government here frowns on a foreigner potentially taking a job away from a local.


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## Binno (Mar 18, 2015)

Thank you all
The best idea seems to be working in the tourism industry, getting a job with a stable work permit as a bar/hotel manager if possible and otherwise starting a small business as a bar owner. Then maybe getting some money as a part time tour guide if this doesn't create too many problems with the locals


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## Gary D (Oct 28, 2013)

There is an excellect artical called "Running a business in the Philippines", try googling it, which I think you would find well worth while reading. I'm not allowed to link to it due to furum rules which is a shame as I think it should be compulsary reading for anyone thinking of starting a business in the philippines.


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## lefties43332 (Oct 21, 2012)

Gary D said:


> There is an excellect artical called "Running a business in the Philippines", try googling it, which I think you would find well worth while reading. I'm not allowed to link to it due to furum rules which is a shame as I think it should be compulsary reading for anyone thinking of starting a business in the philippines.


Can we ask you to share it pl Gary...jet? What's the verdict?


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## Asian Spirit (Mar 1, 2010)

lefties43332 said:


> Can we ask you to share it pl Gary...jet? What's the verdict?





Gary D said:


> There is an excellect artical called "Running a business in the Philippines", try googling it, which I think you would find well worth while reading. I'm not allowed to link to it due to furum rules which is a shame as I think it should be compulsary reading for anyone thinking of starting a business in the philippines.


Sure, Let Me Google That For You


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## M.C.A. (Feb 24, 2013)

*Poisioning the animals*



Gary D said:


> There is an excellect artical called "Running a business in the Philippines", try googling it, which I think you would find well worth while reading. I'm not allowed to link to it due to furum rules which is a shame as I think it should be compulsary reading for anyone thinking of starting a business in the philippines.


I read some of the article and sure enough it dealt with family members poisoning his animals.... lol, yea....that's some real life stuff and it happened to me also, lost all my healthy goats to poison. Workers feeling empowered as if it's there business and also stealing profits, gaining support from the Barangay against you. 

Philippines is a real tough spot to make a go at business, I have more stories of my own.


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## Tukaram (Dec 18, 2014)

I know a couple guys that either manage a bar or a hotel and they always seem so stressed out. I have talked to some restaurant owners and hotel owners (Americans, in Boracay) and the stress level just does not interest me. 

I think the only business I would be interested in here would be to own a small beach resort (yes, in my wife's name). It would be a good excuse to live on the beach - making money would be secondary.

The best option is to find a way to make money online. Get paid in dollars but live on pesos...


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## Nickleback99 (Aug 6, 2011)

Tukaram said:


> I know a couple guys that either manage a bar or a hotel and they always seem so stressed out. I have talked to some restaurant owners and hotel owners (Americans, in Boracay) and the stress level just does not interest me.
> 
> I think the only business I would be interested in here would be to own a small beach resort (yes, in my wife's name). It would be a good excuse to live on the beach - making money would be secondary.
> 
> The best option is to find a way to make money online. Get paid in dollars but live on pesos...



Yep! After having worked there before for Uncle Sam amongst all the corruption and aggravating circumstances , and then spending much time and money since on my own, For Sure when I retire back there next year or so, I'm Done! I cannot imagine the aggravation the older I get. Gonna see all of the PI and as much of Asia as possible And do it on My time !


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## jdavis10 (Oct 1, 2012)

DO NOT (I REPEAT) DO NOT borrow money to filipino expecting money back following month or even after couple years it just will not happen. You will lose and your dignity and stress will get high. Investing into any business in Philippines is risky. Do not do it until you trust your pinay wife with your life. It is better to have income source from the internet.





Binno said:


> The place I would choose is Panglao Island. I am going to marry to a filipina...
> Another last question, if I am not bothering you. Let us say you have 20.000 USD and you make an agreement with your own wife or with any other filipino national. Based on this agreement the filipino national is borrowing that amount from you with no interest but they are supposed to pay it back after some years. In this case, they would be the owners of the land/bar etc. but in case you break up they are supposed to give you the money back. Is this possible? Is it common to start up a business with this kind of agreement?
> Thanks for again for your kind answers


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## ReneD (Oct 1, 2012)

Now you get me wondering... I owe a business in The Philippines, and own 99,99% of the shares. I do have 3 Filipino directors, I am the 4th myself.

You tell me now this is not allowed??? I will ask my accountant.


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## Gary D (Oct 28, 2013)

ReneD said:


> Now you get me wondering... I owe a business in The Philippines, and own 99,99% of the shares. I do have 3 Filipino directors, I am the 4th myself.
> 
> You tell me now this is not allowed??? I will ask my accountant.


What type of shares are they, if voting shares I would definitly look into it. I you are going to ask an accountant ask one in a different town. If your filipino directors are silent partners you have big problems. Look into the anti-dummy corporation laws.


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## ReneD (Oct 1, 2012)

Googled a bit and the 60-40 rule does not count if you export more then 60% of your goods/services.
I export 100%, so there is no cap. BPO companies like mine can be 100% foreign owned.
I asked my accountant anyway... I'll let you know his reply, but I expect it is like this.


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## Gary D (Oct 28, 2013)

ReneD said:


> Googled a bit and the 60-40 rule does not count if you export more then 60% of your goods/services.
> I export 100%, so there is no cap. BPO companies like mine can be 100% foreign owned.
> I asked my accountant anyway... I'll let you know his reply, but I expect it is like this.


That is interesting information, please keep us up to date as there are other that find this interesting.


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## colemanlee (Nov 17, 2014)

Gary D said:


> There is an excellect artical called "Running a business in the Philippines", try googling it, which I think you would find well worth while reading. I'm not allowed to link to it due to furum rules which is a shame as I think it should be compulsary reading for anyone thinking of starting a business in the philippines.


My wife and I just read "Running a business in the Philippines" I thought she would fall off the chair she was laughing so hard...why because its so true...
Honestly, what I got out of it was what she tells me all the time, If you cant be there to supervise...dont do it...What SHE said is something like, no matter who it is, family, your best friend, or the priest...If you cant supervise them..DO NOT DO IT..


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## ReneD (Oct 1, 2012)

Got news from my accountant:

Foreign ownership up to 100% is allowed for export enterprises. 

Philippine Foreign Investment Act 7042 Section 6 states that: 

"Section 6. Foreign Investments in Export Enterprises. - Foreign investment in export enterprises whose products and services do not fall within Lists A and B of the Foreign Investment Negative List provided under Section 8 hereof is allowed up to one hundred percent (100%) ownership.
Export enterprises which are non-Philippine nationals shall register with BOI and submit the reports that may be required to ensure continuing compliance of the export enterprise with its export requirement. BOI shall advise SEC or BTRCP, as the case may be, of any export enterprise that fails to meet the export ratio requirement. The SEC or BTRCP shall thereupon order the non-complying export enterprise to reduce its sales to the domestic market to not more than forty percent (40%) of its total production; failure to comply with such SEC or BTRCP order, without justifiable reason, shall subject the enterprise to cancellation of SEC or BTRCP registration, and/or the penalties provided in Section 14 hereof."
Services provided by Audiotex offshore are not one of the items mentioned in Lists A and B of the Foreign Investment Negative List.

So; you can have a business as long as your activities are not on the negative list (mainly stuff on it like construction, drilling for oil, digging up minerals...), and you export at least 60%.
Which gives you plenty of opportunities; selling on the home-market is not a good idea anyway; Philippino's are much better in that. As long as you sell abroad, bringing in money into The Philippines, you are more then welcome.
I would strongly suggest NOT to found the company yourself (too difficult and it takes a lot of time - mistakes can be costly). <Snip>
Take a local accountant for that.


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## M.C.A. (Feb 24, 2013)

*Information on owning a business in the Philippines*



ReneD said:


> Now you get me wondering... I owe a business in The Philippines, and own 99,99% of the shares. I do have 3 Filipino directors, I am the 4th myself.
> 
> You tell me now this is not allowed??? I will ask my accountant.


Oh boy.... There's a guy you also might want to check out he's an Australian that has lived here for decades, has business (he has some stories on that) and condo's his name is Sean TheResortRebel, he talks about partners in business and he's entertaining your really need to check him out. 

And so you trust professionals here. :fingerscrossed:


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## Cebu Citizen (Dec 13, 2013)

Jet Lag said:


> Sure, Let Me Google That For You




Hahaha...Nice Link!...now was that so hard? lol!


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## Asian Spirit (Mar 1, 2010)

Cebu Citizen said:


> Hahaha...Nice Link!...now was that so hard? lol!


Hahaha, Thanks. That Google search thingy is pretty good. I can't take credit for it's discovery though. Another member on different country page turned me on to it.


Jet.


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