The Philippines, a South-Asian country, is home to some world-famous things. Among them, natural resources, business and investment locations, human resource and many more are open to thousands of opportunities in the Philippines.
The transformation of the country in the last few decades from being an average economy to becoming one of the strongest in the world is remarkable. In recent years, the Philippines is crawling with opportunities. One of the prominent reasons behind this progress is expansion and development in the fields of business and investment sectors. If you are planning to establish your business in the Philippines, then this is all you need to know.
1. Location of the Philippines
If you are setting up a business in the Philippines, the first thing you would notice is the location it is situated in. The country has its way of turning over a new leaf. The strategic location of the country plays a significant role in the development of the overall aspect. It is situated sort of in the middle of 2 great oceans; the South China Sea and the Pacific Ocean. makes the Philippines one of the ideal locations for business and investment in the world. When the rest of the world discovered how advantageous it would be to expand their trade and business via the Philippines, it started showing some progress in the field of commerce. The location can be a massive advantage for your business if you are looking to invest in the Philippines.
2. Low Cost of Living
The cost of living is something you should consider before moving to a different country permanently for a business purpose. However, in the Philippines, the daily living cost is surprisingly low, and it provides a decent level of quality. In recent years, the amount of money a resident spent was PHP491 on an average daily basis. It was 9.78 USD when converted. In the present, it may have gone up by 2% in the year 2019. However, even then, the per capita income would be increased by 3.8% in the year 2022. It is affordable at every level for an average monthly income. This leads to many savings which give you more options for investment in different fields.
3. Developing Market and Economy
The domestic market of the Philippines is growing at a rapid pace for the year 2016-17, and the demand increased by 6%. The domestic passenger traffic of the country is has been growing at a consistent pace for the last decade. The Philippines has witnessed the economic growth of 6.5%-7.5% in recent years. The recovery of speed from some of the economic challenges it faced in the year 2018. The export market took a hit and reached US5.28 billion dollars. The export market of the Philippines has a plan of increasing the numbers even further. With US$885 worth of imports from the Philippines, Japan is the 1st market provider of exports followed by USA, Hongkong China and Singapore.
4. Affordable Educated Labour
Labour cost is something you should consider before setting up a business in the Philippines. Among other factors that make up a business, without human resource, a business might not do well. There is an advantage when it comes to the labour cost in the Philippines and is surprisingly affordable at all levels. The quality of labour in the country was ranked one of the top 5 in the world. The education quality of the labour is quite high a beneficial factor that can’t be found in most of the world. In the metro areas of the Philippines, a basic level of educated labour cost is around $30 US/day. In the province areas, it can be around $10.84-13 US/day. This may be the most helpful among the other factors. If you're considering to establish your business in the Philippines permanently.
5. Business Friendly
With the rapidly growing economy in the Philippines, the investment in the business field has become a lot easier and wisely chosen. It is because of the economic status of the country, the GDP has been increased by 6.1% at the end of the year 2018. The way the business industry is expanding its trade at the international level, setting up a business in the Philippines is a lot more flexible than it used to be. The economic status of the Philippines is responsible for the 113th ranking on the global level, and the business atmosphere in the Philippines is open to all kinds of startups and investments.
6. Double Tax Agreement (DTA)
The law of the Philippines requires its residents and non-residents with a source of income to pay taxes. However, if you are a non-resident but your source of income is in the Philippines, you may have to file charges which is double taxation. The Philippines is a signatory to over 45 countries with its Double Tax Agreement also known as the Tax Treaty. The countries included in the DTA of the Philippines can enjoy some amount of exemptions and advantages while filing taxes. If you are a foreigner looking to invest in the Philippines, the DTA can be a strong factor you should consider.
7. Government Initiatives
- E-service system is established in the civil service sector of the Philippines for the smooth administration of the government. To make the civil servants reach the residents in a better and convenient way., it provides services like E-government, E-application, E-solutions and other concerns regarding the official government requirements.
- ICT enabled startup is one of the initiatives taken by the Philippines government to promote the technology in digitalization of local startups and entrepreneurship. It is estimated that annual revenue produced by the local startups alone, might reach of 15million PH pesos by the year 2020.
- With the E-government programme of the Philippines, it ranks 95th among the top 100 E-governments on a global level. By giving more attention to the efficiency issues, it is determined to achieve one among the top 50 ranks.
8. Infrastructure Network
Infrastructure network is the most essential factor behind the very existence of a country in the modern world. The Philippines is one of the investment-friendly countries on a global level. If you're setting up business in the Philippines, the first thing you would notice is the road transport infrastructure. For the efficiency development of the country, the Philippines has spent 7% of its total GDP for the improvement of its infrastructure in recent years. The expenditure on infrastructure increased to 15.4% which is over 568.8 billion in the year 2017, and it is still growing. New 75 flagship projects are introduced and they are about to be completed by the year 2022. The projects include 4 water transport projects, 6 airports, 12 rail and urban, along with coal-fired power plants and many others which are non-transport related. Despite the challenges, the investment in the public transport sector is profitable.
With 7000+ islands as the home, Investment in the Philippines is not something you should consider in terms of income alone. There is a various number of advantageous factors that should be by your passion, interest and expertise. Now, at this point, a subject matter expert would be a favourable option. They will not only help you in giving the correct guidelines but will also help you in dealing with the legal proceedings. Registering a business in Philippines turns out to be a tedious job, and to ease the process, we are here to help you.
Business Setup Worldwide is one of the top business consultants and, if you are looking for guidance, we are here. Our business experts are well-versed with the laws of the Philippines and can accompany you in the incorporation process. If you want to take a step forward, do contact us-we’d be glad to assist.