Weighing the ‘Pros’ and ‘Cons’ for Starting Foreign Companies
UNLIKE in 2019, foreign companies wanting to start business in the Philippines are in the best position to do so, amid national government policies, enacted laws, and legislative measures seen to favor investments.
On top of the business-friendly laws in place, recent developments have opened a wider room for newbies to do business.
Philippine President Rodrigo Duterte, who has openly supported measures seen to create a business-friendly climate in the country, has in fact earned congressional support in his bid as reflected in approved legislative measures providing incentives to investors, laws simplifying the tedious process amid multi-layered bureaucracy, expanding foreign ownership, among many others provisions.
There is however some reservation for those wanting to invest with the proliferation of disinformation perpetrated by a few. This is something that the Philippine government has been able to handle so far.
With all certainty, there are signs of an economy coming back to life amid the global economic slump in view of the Coronavirus pandemic. Citing, economic data, the Philippines reopened its economy while containing the pandemic through multi-face approaches.
Slowly but Surely
It is not every day that the world gets to see a country united in fighting for a common goal –from the highest government structure down to the villages.
The executive branch closely working with the legislative branch and supported by a judiciary seen to ward off legal attempts to dislodge painstaking efforts from day one of the national health emergency, has made provided the much needed economic lift that would bring life anew, slowly but surely.
Restrictions are gradually eased with the business sector at the forefront.
As such, it is imperative to decipher what makes the Philippines an ideal place to do business, especially, for starting foreign companies.
What makes the Philippines a good place to start-up a business?
With a population of on the point of 108 million, largely customers, there’s little question of a potential market. The Philippines has so much to offer, which includes opportunities to sell both products and services provided a starting foreign company knows the fundamentals of enterprising. Most of the consumer-driven Filipinos, including those running a business of their own could as well form part of the market through a marketing tie-up, distributorship, franchises among many other business tributaries. Filipinos are also known flexible and as such could easily adapt to foreign cultures and business practices.
Labor for Less
Filipinos are no ordinary bunch of workers. They are globally sought after because of commitment, hard work, a witty ability under the tight conditions, and the ability to easily adapt to foreign languages. In fact, a little less than 10 percent of the Philippine population has been tapped to work in many countries. Interestingly, the highly-skilled Filipino working class doesn’t charge more than what they should.
Aside from the business-friendly economic policy, the Philippine government sees to it that everything is in order. This is possible by putting up economic zones, commercial areas, financial districts, and other business infrastructures to make life easier for starting foreign companies. Aside from the business hubs, the Philippines has also been able to put up quitter a number of international airports and seaports from up north of the archipelago down to the south.
Business-Friendly Economic Policies
For the last four years, the government has put in place laws simplifying what used to be complicated business flow. It has significantly trimmed down bureaucratic layers that compelled many other investors to pick on other Asian countries in the past. The Philippine Congress for its part has legislated measures seen to allow foreign companies to fully own businesses. Investors are given substantial tax perks.
Peace and Order
Gone are the days when foreign companies and businessmen fall prey to dubious groups. The government, in close coordination with the Philippine National Police and the Armed Forces of the Philippines, has significantly trimmed down numbers relative to crime, insurgency, and terrorism.
Just like any other country, the Philippines has its share of inevitable circumstances which could make starting foreign companies challenging, such as:
Too Many Paid Holidays
As a nation of hospitably warm people, the Philippines gets to observe holiday if only to preserve its culture, as any other countries do. However, the number of paid holidays is definitely negligible in comparison with the revenue they make for foreign companies where the hardworking Filipinos work. Incidentally, the long Christmas holiday considered the best business season of the year. Christmas bells start as early as September and end the first week of the following year. This translates to more than four months of buying spree from a consumer-driven population.
All governments around the world should realize that the working class is the lifeblood of any business venture. Productivity heavily depends on workers and secure their welfare as an added bonus, equating to restrained business growth. Labor laws not only made to protect just the workers. It also embarks on sustainable economic activity.
Global economists categorically consider traffic congestion as an economic indicator. A place with no traffic congestion only shows no economic activity. But even then, the government has been addressing traffic concerns by putting up more infrastructures and mass transportation system if only to reduce the number of vehicles on the road. The government has likewise been putting up an engineered traffic system.
No businessman would want to share what he or she has painstakingly worked for. The idea of sharing one’s business to somebody from the place where his business is located somehow dissuades investors. As such, the Philippine Congress has effectively addressed constitutional provisions limiting foreign ownership.
Ready to Engage
The Philippines is truly an ideal place to start a business. This still holds true despite all the challenges you would experience during the process. Upon knowing the country’s strengths and flaws, you now have the basic information on what it’s like to set up a venture.
However, just the sheer knowledge of it isn’t enough – you would need assistance to streamline the arduous process. At 3E Accounting, we offer Philippine set-up business services, with a proven track record of delivering results to starting foreign companies in the Philippines.
Setting up business in the Philippines need not be a burden. Contact us now if you wish to do just pure business. No more, no less.