# Planning to start a company in phil



## lfetesting (Mar 4, 2014)

Hi Guys,

Am from India and am planning to start a software company in Philippines.
Can you guys please recommend me a good place to start?
Am not favouring manila because of its high cost of living and rentals.
Heard that Dau is a good place and how about cebu?
The factors i am concerned about are
1. Running cost of the company like rentals
2. Availability of Skilled developers
3. Safe naturally.

Can you please guys help me out in finalising the place.

Thanks Guys
Nick


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## billygoat993 (Jan 18, 2014)

Hi, you can search in Cebu, Subic or Sta Rosa Laguna. Sta Rosa has many big companies and accessible to Makati 30 mins without traffic. There are offices for rent here depending on the size. House or apartment that I used to rent for my employee cost me 6,600 it has 2 rooms 2 cr, kichen, living, laundry and garage. In that area are mostly employees working in factories and family of Indian nationals all renting. It is not gated. If you opt for a house depending on size cheapest would start at 15k pesos up that would be in a village/gated community if you also choose an office it would depend on location and size if its near the companies it would be around 20k above, if its near the town proper where its not gated and it is around 6,000 pesos for 20sqm. 
But in the area near town proper internet is not fast. In the gated community like Valenza, Laguba Bel air 10 mbps are now available. Its cleaner in this area than town proper side.


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## lfetesting (Mar 4, 2014)

Billy,

Thanks a lot for the help.
Much appreciated.


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## Asian Spirit (Mar 1, 2010)

lfetesting said:


> Hi Guys,
> 
> Am from India and am planning to start a software company in Philippines.
> Can you guys please recommend me a good place to start?
> ...


Best place to locate that I can think of is the old U.S. Clark Airbase at Angeles/Dau/Mabalacat, Pampanga. Tax intensives are many to those opening a business in the Philippines. Another duty free, economic zone is 
the Ex U.S. Navy base (SBMA) in Subic Bay. Those two locations are not only better financially but also are much more secure and business friendly than areas outside base boundaries.


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## lfetesting (Mar 4, 2014)

Thanks a lot for the replies. Planning to comes down to Phil and see some of the places and then decide.
Will Pampanga and Subic have enoug of IT skilled people? Do the philipines natives travel to all places and work or are they confined to some specific areas?


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## Gary D (Oct 28, 2013)

lfetesting said:


> Thanks a lot for the replies. Planning to comes down to Phil and see some of the places and then decide.
> Will Pampanga and Subic have enoug of IT skilled people? Do the philipines natives travel to all places and work or are they confined to some specific areas?


Without knowing what level of IT skills you require I would take a stab and say you should find what you are looking for. On the whole Filipinos will travel and even lodge locally if necessary.

One question about your wanting to run a business in the Philippines. Are you conversant with the requirement to do this. Unless you locate your business in a special economic zone or employ more that a prescribed number of locals you cannot own the business outright, you can only be a 40% owner and also only put in 40% of the capital. You will also need the appropriate visa to work in the Philippines. Don't even think about trying to run it remotely you need to be there 24/7 to see it work.


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## Asian Spirit (Mar 1, 2010)

lfetesting said:


> Thanks a lot for the replies. Planning to comes down to Phil and see some of the places and then decide.
> Will Pampanga and Subic have enoug of IT skilled people? Do the philipines natives travel to all places and work or are they confined to some specific areas?


Pampanga and the surrounding areas of Angeles and San Fernando should have plenty of people. Same over in Subic.
People here can live and work anywhere they choose. 
I'd strongly suggest though that you visit in person with one or two of the IT companies in Clark to get a feel for what it is like to own and operate a business here. The Philippines is different in most all was from other countries. So a good investigation would be in order to be really sure you want to do or own a business here.


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## lfetesting (Mar 4, 2014)

Thanks Gary and Jet Lag,

I have been in philippines and have visited makati and clark once 
I am not planning to do the remote administration, rather one of the partners will be in philipines all the time.
I have a working software company in india for the last 7 years.
I have heard that maintaing a 20000 USD in central bank account in the name of a person allow us to open a company 100% owned, anyone heard about this?


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## simonsays (Feb 11, 2009)

lfetesting said:


> Thanks Gary and Jet Lag,
> 
> I have been in philippines and have visited makati and clark once
> I am not planning to do the remote administration, rather one of the partners will be in philipines all the time.
> ...


never heard of this ... other than the 40% rule for foreign ownership

lawyers may come up with a few creative ideas but at the first sign of trouble will relieve you of your investment ... just saying

see how many Philippine lawyers are suddenly rich

you should travel a bit more and have a feel for the business climate here

plus what work pass will you get, to supervise the business?

engaging in even sitting in office doing nothing can get you deported if you rub the wrong shoulder ...


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## Gary D (Oct 28, 2013)

lfetesting said:


> Thanks Gary and Jet Lag,
> 
> I have been in philippines and have visited makati and clark once
> I am not planning to do the remote administration, rather one of the partners will be in philipines all the time.
> ...


Whatyou are looking for is a Special Visa for Employment Generation (SVEG). You need to employ at least 10 Filipinos and the current visa fee is just over $40,000. Plus the same again for a spouse and any dependents, that's each.


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## enjoi (Dec 20, 2013)

I'm from the US and have been talking about moving to the PI where my fiance is to live but d to secure employment first. If you need someone to do a+ work PM me


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## lfetesting (Mar 4, 2014)

Gary,

Thanks for letting me know the name of the visa,
After reading around a bit i could find that there is no 40k USD required to get that. somewhere around 40k Peso will do the trick.
Anyway i will contact some of my contacts who will help me out.
And how exactly can i get a philipinno owner whom i can give the 60% share?
i have heard that we can get the power of attorney from them and we make ourselves the signing authority, and thus we are safe upto an extend.
How exactly the expats find a philipino partner?


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## Gary D (Oct 28, 2013)

lfetesting said:


> Gary,
> 
> Thanks for letting me know the name of the visa,
> After reading around a bit i could find that there is no 40k USD required to get that. somewhere around 40k Peso will do the trick.
> ...


You may be correct that it is 40,000 peso not dollars. The BoI website give the fee and talks about the dollar exchange rate but doesn't specify if the fee is in pesos or dollars.

Special Visa for Employment Generation

It is my opinion that you shouldn't touch the 40-60 split unless you want to loose both your business and your money. Any document that ties up the Filipino partner with contravene the anti dummy laws so you can't do that. You may be able to incorporate but then you need Filipino 5 partners, this with make you 40% the biggest singe share, until the other 5 get together and steal your business.

You are going to have to tread very carefully if you go ahead with this venture as the Filipino attornys are know for telling you what you want to heard and taking your money. it's sad to say but parting foreigners from their money is a nation pass time.

The usual way that expats find their business partners is to marry her.


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## lfetesting (Mar 4, 2014)

Hi Gary,

Thanks for the valuable info.
I am looking for a better alternative, than making a philippino my better half and giving more than half of my business LOL... !!!


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## simonsays (Feb 11, 2009)

lfetesting said:


> Hi Gary,
> 
> Thanks for the valuable info.
> I am looking for a better alternative, than making a philippino my better half and giving more than half of my business LOL... !!!


despite all the chest thumping, Philippines is very anti foreigner ... for investors .. the law is there, lest the established oligarchs loose their loots ....

oh, you can partner with one of the rich businessmen and lose all your money or marry a filipina and loose all of them., 

btw, their are a lot of Filipinos / filipinas who aren't out to rob you, the trick is finding one

I have friends whose Philippines ventures are safe with their filipina partners ... but that's the minority

a few more lost all and some are being sued for injustices done to Filipinos in the course of employing them ..

reality bites ...:first:


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## lfetesting (Mar 4, 2014)

Yes,

Thanks a lot for the suggestion,
As of now am thinking about Dau and Subic, go there myself and then find the best place to start the company.


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## lfetesting (Mar 4, 2014)

One more question.
Is it necessary that the minimum capital investment be 20k USD or somewhere near to this to start an incorporation in phil 40-60% basis?
And we need to put in 25% of the capital in bank as security?
is there something mandatory in that fashion?


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## simonsays (Feb 11, 2009)

Gary D said:


> You are going to have to tread very carefully if you go ahead with this venture as the Filipino attornys are know for telling you what you want to heard and taking your money. it's sad to say but parting foreigners from their money is a nation pass time.


love it ...


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## Gary D (Oct 28, 2013)

lfetesting said:


> One more question.
> Is it necessary that the minimum capital investment be 20k USD or somewhere near to this to start an incorporation in phil 40-60% basis?
> And we need to put in 25% of the capital in bank as security?
> is there something mandatory in that fashion?


I don't think there is any such requirements beyond any fees to the BIR etc. Of course one problem could be your visa status as you can't work on a visit visa.


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## billygoat993 (Jan 18, 2014)

Just be careful in getting a Filipino cause when i comes to money is hard to trust saying it from experience in business here. Employees theft is rampant here and the labor law leans towards them. U can not terminate employees even if they are stealing u have to warn them 3x and contracts can not stipulate somehi g about termination that would be unfair to employees. 
Be careful not to reveal everything to your lawyer cause he might be the one to go against you. Best to investgate the background and persona of the Filipino and family. Koreans gets maid as business partner bec they are illiterate but then having a big mouth doesn't help them either. And because they get shares or higher salary they tend to show off which leads to jealousy to others and putting the expat in trouble.
Just be careful in choosing but defintely u can use a <Snip> filipino. How to pick one is hard but u can sense it if a person has a good heart. <Snip>
Employees will travel if salary is good if out of town a housing can be arranged for employees.
The availability of Skilled IT will depend on area you will choose but you can always source out and bring them over. 
Right now the DTI and SEC is keen on checking and investigating businesses with regards to computer related business since the past days call centers are just a front for porn hub etc. a Korean has been put in Jail because the business partner ****** from Laguna had made some mistakes by bragging the business and having a very luxurious life thus prompting the NBI to raid them.
Just be prepared with your docs and have a signed SPA from the Filipino. <Snip>


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## lfetesting (Mar 4, 2014)

thanks a lot billygoat.
That is a real good info.
will keep that in mind.
Can you please let me know if the areas like dau(pampanga) and subic etc have enough it companies running. more than that will i get enough infrastructures like building and net connections for the smooth running?


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## billygoat993 (Jan 18, 2014)

lfetesting said:


> thanks a lot billygoat.
> That is a real good info.
> will keep that in mind.
> Can you please let me know if the areas like dau(pampanga) and subic etc have enough it companies running. more than that will i get enough infrastructures like building and net connections for the smooth running?


Hi, i have been in Subic and Dau but I do not know if they have IT companies or IT's since what I know is that most students often go to Universities in Manila for such a degree or College/University. I can only tell you that there is a lot of people looking for job in that field in Makati, Manila or nearby areas since people think that its better to get a job downtown. 
I am sure other members who live in that area will have personal knowledge about that. 
I can only help you on steps and how to register a business since I have been thru that stage.


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## lfetesting (Mar 4, 2014)

Thanks a lot Billy,

Can you please let me know at a minimum capital, what would be the amount required to open a new corporate company?
Consider that i will find a philippino and i will be opening the company in his ownership 100% as well as another option with 60-40


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## billygoat993 (Jan 18, 2014)

http://www.sec.gov.ph/gsr/primary/minpdup.html
http://www.sec.gov.ph/gsr/primary/primaryreg.html
These are some useful links that will give you an idea this is also one of the many offices where you need to register your business after DTI etc. 
Having a corporation is more messy to register but in tye ling ran better than sole propietorship.


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## JimnNila143 (Jul 23, 2013)

*Business in the Philippines*



Gary D said:


> Whatyou are looking for is a Special Visa for Employment Generation (SVEG). You need to employ at least 10 Filipinos and the current visa fee is just over $40,000. Plus the same again for a spouse and any dependents, that's each.


If you do bring a business into the Philippines, taking in mind the 40% Foreigner rule, if you do employ at least 10 Filipinos the PBI will issue you an indefinite stay visa. There are requirements you have to meet.


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## lfetesting (Mar 4, 2014)

Am planning for a 100% export oriented business, the complete revenue will be from outside philippines and i dont have any target for the local market.
So is there any special registration that can help this type of company?
in my country, there is a tax exemption for 100% export oriented company.


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