Recent years have seen the government of the Philippines adopt a more welcoming stance towards foreign investment. Much of the required paperwork has moved online and a lot of red tape has been cut, giving foreign businesses improved access to the country’s consumers and its skilled English-speaking workforce. However, the regulatory landscape is still complex, and it is easy to run into problems and delays. Local corporate services agencies can lend a valuable helping hand. Here’s how.
Incorporating Your Business
While foreign-owned businesses can operate in the Philippines, the process of incorporating them can be complicated. It has been improved since it moved online, but tight deadlines and cumbersome document requirements mean it is often best to let a local expert deal with it on your behalf. Agencies offering corporate services in the Philippines typically do this, and they can also help you decide which business structure is most appropriate.
Tax and Regulatory Compliance
The Philippines’ tax regime is burdensome. That is not to say that companies’ tax liabilities are large, but that the country’s multi-layered system of national and regional taxes requires a lot of time and energy to comply with. Local corporate services providers are able to reduce this burden by filing tax returns and meeting deadlines on behalf of their clients. They are also able to help businesses benefit from any available tax incentives and minimise their liabilities.
Business Permits and Renewals
Depending on which sector your business operates in, regulatory and legal compliance can also be a challenge. Companies generally require a wide range of licenses and permits in order to operate legally. These generally do not last long, often having to be renewed each year. Missing a renewal deadline can cause disruptions or result in penalties being charged, which is why many foreign businesses prefer to let an agency or firm of consultants do this for them.
Outsourcing
Accounting, payroll management, and marketing are all critical business functions, but not core operations. That is why many businesses choose to outsource them, letting specialists with greater expertise manage them while applying their own expertise to their core business. Outsourcing non-core operations like these is popular in the Philippines, where agencies are staffed by highly-skilled workers whose services are available at very cost-effective prices. Outsourcing can often be provided or arranged by a corporate services firm.
Bookkeeping Accuracy and Financial Reporting
When it comes to managing business operations, attracting investors, and complying with the law, keeping accurate financial records is a must. Countries often set their own standards for financial reporting, meaning that the requirements in the Philippines may be unfamiliar to foreign businesses. Corporate services providers can assist companies operating in the Philippines with bookkeeping and the preparation of financial statements, as well as making sure that the business is well-prepared for audits.
Local Insight and Foresight
While the laws that businesses must comply with are usually made available to the public online, what is written on paper may not reflect the way the law is implemented in practice. Local professionals, who often have officials and service vendors in their networks, will be able to provide better advice about this. They can also keep an ear to the ground on behalf of foreign companies, letting them know in advance about upcoming changes to regulations.
Conclusion
Your experience of doing business in the Philippines is likely to be a lot smoother if you team up with a local corporate services provider. And while no business venture is certain to succeed, your chances will be improved significantly by a trusted partner who can help you avoid compliance issues and offer local expertise.
