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ASEAN Connected: Philippines Business Guide

ASEAN Connected: Philippines Business Guide

According to UNCTAD's World Investment Report 2015, the Philippines is one of the top 10 recipients of foreign direct investment (FDI) in East and Southeast Asia. The Philippines received FDI inflows of USD5.72 billion in 2015.

The Philippines ranked 103rd in the World Bank's 2016 Doing Business rankings, down six places from 97th in the year prior. Despite a fall in its overall position, the rankings recognised reforms that the Philippines had enacted to make doing business easier. This included making starting a business easier by streamlining communications between the Securities and Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number.

Key facts about starting a business in the Philippines:

  • It takes 16 procedures and approximately 29 days to start a new business in the Philippines; this process is detailed in the Doing Business in chapter
  • Obtaining an Alien Employment Permit costs PHP8,000 for one year; employment regulations are discussed in detail in the Labour chapter
  • It takes approximately 21 days and costs PHP43,043 to apply and obtain a building permit and all ancillary permits at the Office of the Building Official
  • Companies operating in the Philippines spend, on average, 183 hours per year 'Paying Taxes'; the tax regime is outlined in the Tax chapter
  • Large or public entities must use Philippine Financial Reporting Standards (PFRS), SMEs are obliged to use PFRS for SMEs; further details can be found in the Audit chapter
  • Companies wishing to list on the first board of the Philippine Stock Exchange must, amongst other requirements, have recorded a profit for the past three fiscal years; this is discussed further in the Finance chapter
 
The HSBC guide has been developed to provide businesses with an overview of the Philippines, its legal regime, start-up and market entry considerations, tax and customs requirements and a general summary of the factors that may affect the decision to do business in the Philippines. However, the information contained in this document is generic in nature and you should not act or rely on it without obtaining specific professional advice.

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Dee-Ann Prather, Down Under Enterprises International
NSW Women in Global Business Award winner
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