• Share:

6 Steps to Start a Small Business in the Philippines 2021

Referred to as the Pearl of Orient Seas, the Philippines is an island country that stands at the Pacific Ring of Fire in Southeast Asia. It is one of the best performing economies in Asia that widens the opportunities for global investors.

Over the year, the Philippine government has taken numerous steps to improve the business climate in the zone by easing out the company setup proceedings to grab the attention of the international investors and increase the FDI.

In this guide, you will get a complete idea of the steps to be taken accordingly to start a small business in the Philippines.

The Philippines as a Business Ground

Apart from grabbing the attention and providing facilities to the international business minds, the ground also provides similar opportunities to the small and medium scaled industries and business entities.

If you are planning to start a business in the Philippines, then right now, you are at the right place.

Small Business Industries in the Philippines

Micro, small and medium enterprises (MSMEs) have an essential role in developing the Philippine economy. The entities employ less than 200 workers or those with an asset size of not more than 100 million pesos. Let's look at the various sizes of an enterprise in the Philippines:

Enterprise

By Asset Size (in pesos)

No. of Employees

No. of Enterprises

%

Micro

Upto 3 million

1-9 employees

820,795

89.63%

Small

Between 3 and 15 million

10-99 employees

86,955

9.50%

Medium

Between 15 and 100 million

100 – 199 employees

4,018

0.44%

Large

Above 100 million

Above 199 employees

3,958

0.43%

 

The sheer number of MSMEs in the Philippines makes it very important for the country's economy. In addition, the government is also focusing on the growth of MSMEs in the Philippines, making it a lucrative option for both local and foreign investors.

Philippines Government Initiatives

As stated earlier that the Philippines government has been keeping an eye to streamline the complete process and make it easy for the business investors; a few of the initiatives include:

  • Improved business environment
  • Easy access to finance
  • Human capital development
  • High-end productivity and efficiency
  • Easy access to the regional, national and international market

Having a clear understanding of the market scenario helps a business investor to play smart in the field. Thus, here's a treatise on Economic Growth and Impact on the Philippines that will help you get better clarity.

So, let's proceed towards the core steps you should keep in mind before establishing a small business entity in the Philippines.

How to Start a Small Business in the Philippines?

Setting up a small business entity in the Philippines involves a set of procedures that are to be followed accordingly, which involves:

  1. Be clear regarding the business: Before you even initiate any step, make sure that you hold crystal clear about the business you will proceed ahead with.
    1. Jot down all the possible ideas that come to your mind, and choose the best among them that you can think you can start with.
  2. Seek experts help: Proceeding ahead with an expert turns out to be a life-saver as it helps carry out the entire legal proceedings at ease. In addition, experts are well-versed with the ground level processes and can assist you accordingly.
  3. Draft a business plan: Outlining the steps is one of the perfect calls to take things head. Planning of a business involves:
    1. Curating an executive summary
    2. Figuring out a SWOT analysis
    3. Preparing a financial budget
    4. Highlighting the goals and objectives of the company
    5. Developing the entire business framework, etc.
  4. Transparency about funds source: Funds stand as the backbone of any business. Be it a small, medium or large enterprise, a business unit can't perform its activities without financial assistance.
  5. Finalize the trade name: The trade name stands as the face of any business, and thus, one has to be very careful while choosing a business name.
    1. While doing so, it is essential to note that the selected business name must be unique from the competitors available in the market. Additionally, it shouldn't sound offensive at the same time.
  6. Get your business registered with the registrar: The final stage is to get your business register with the company registrar of the Philippines. This process includes submission of the complete set of documents and obtaining the respective approvals from the authorities.

a. Once the complete steps have been cleared, the overall process gets completed. Investing in the Philippines turns out to be a profitable move for the investors and business owners as it can help them earn higher returns on the investment made.

Here's a guide on Business Opportunities in the Philippines that you can understand the options available.

Now, to proceed ahead with the following steps, it is advised to proceed ahead with experts. Business Setup Worldwide, one of the top business consultants in Dubai, is here to assist you in the complete process.

With years of experience and industry knowledge, our business experts take utmost care in understanding your business requirement and revert with customized solutions. Right from company formation to opening a corporate bank account, we provide you with a complete solution package.

If you are looking forward to setting up your company in the Philippines, feel free to speak with our experts. Contact us today-we'd be glad to assist!