As a British entrepreneur living in the Philippines, I know just how hard it can be to start a business in the Philippines from the UK. But is it even possible? Well, let check out the quick guide below for the answer.
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Open A Business In The Philippines (Quick-Guide)
It is possible to start a business in the Philippines without physically being in the Philippines. However, it can be quite a challenge. On some occasions, foreigners can own 100% of a company, but if you are not owning 100% but instead owning 40%, then you will need to find the relevant partners for the remaining 60%.
Finding an appropriate business lawyer in the Philippines and registering the business is fairly straightforward. the real struggle when looking to open a business in the Philippines from the UK comes from building your team.
If you have your business plan finalized, a Filipino team, then the first step would be to contact a lawyer who will start the process legally. They will often ask for a legal representative or somebody in the Philippines representing your business.
Open A Business In The Philippines From UK
1. Understand The Business Law Of The Philippines
There is a great deal of business law surrounding the Philippines. Therefore, starting a business in the Philippines from the UK can be much easier or more challenging, depending on the type of business you are interested in.
For example, if you are looking to target the domestic market of the Philippines, you will need to have a minimum capital of $200,000 (£146,000). However, in most cases, at the time of registering the business, you only need to show that you have the means of $200K at your disposal.
However, the good news is, starting a business in the Philippines from the UK can be started for much less. This is because several categories of businesses gain their profits from overseas, such as exporting businesses and call centers. Because of this, the capital needed to register a business can be minimal.
Because starting a business in the Philippines from the UK takes a lot of time, effort, and research, you may find step 2 the best place to start once you have investigated your options.
2 Find & Hire A Business Lawyer
Business regulations can differ slightly depending on the location. Therefore whatever location you plan to start your business, will also be where you find a business lawyer.
Consultation fees differ, if you are with a Filipino or have a connection, the price is much lower. 30K – 60K Pesos is an estimate based on data and my own experience, but the total fee will depend on the lawyer and the location.
Ownerships of businesses in the Philippines state that foreign ownership can only reach a maximum of 40%. This is correct for most companies and situations, but there are grey areas, and foreigners can indeed own 100% of a business in the Philippines with the right circumstances.
Because of these reasons and industrial regulations that may apply to you (depending on your industry), it’s highly recommended to seek the assistance of a business lawyer in the Philippines once you have made your mind up about your business and its operations.
3. Recruit Your Team And Launch Your Business
Suppose you cannot own 100% of the business due to regulations and own a smaller percentage such as 30 or 40%. In that case, you will need to find a trustworthy business partner or partners that will have ownership of the other 70 to 60% of the business. This is the most challenging part of starting a business in the Philippines from the UK.
When I started a corporation, my lawyer kindly informed me that as I was the president (of the business) and a foreigner, I would own 40% of the company. 4 roles needed to be filled, including administration, vice president, and so on. Each of these had to be given a percentage of the business, but this could be as low as 1%.
The most challenging part is finding individuals you can trust, and this is one reason why starting a business in the Philippines from the UK Is not common practice. However, at this stage, planning your business and building a network of trustworthy individuals is always a wise idea.
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