Setting up an offshore company is nothing new to companies nowadays. Most of them aim towards lowering their costs to gain profits in their businesses. For that, they have started establishing offices all around the world. The Philippines is also a location wherein the companies are looking forward to investing, as the government is providing benefits for setting up a company in the country. If you want to set up an offshore company in the Philippines, then this article is for you
Offshore Company in the Philippines
An offshore company is a company that is operated, maintained and registered in a foreign location, where the company has been provided with particular legal, financial and tax structure, and has its own set of benefits for setting up in the specific country.
Why Consider the Philippines as Your Next Offshore Company Location?
Before you start pondering upon how to set up an offshore company in the Philippines, these are some of the points you need to understand.
- You are a company who is willing to expand your business worldwide, and you find great potential in investing in the Philippines
- You are looking towards developing a powerful message and setting an example to other companies
- You can analyze your strengths and weaknesses, skill and time devoted towards understanding how to build your company
Once you've followed these points, it becomes easy to focus on how to set up your company in the Philippines. Here are the main reasons why you should consider the Philippines as your next place to start a company
- The Philippines is South-East Asia’s best performing stock markets
Over the past couple of years, the Philippine economy showed a considerable increase in its GDP, at a rate increase of 1% every quarter. The current GDP of the Philippines is valued at 313.6 Billion USD, a rise of 6.3% from last year. This has boosted the confidence of the investors, and the government has also taken some measures to attract more investors
- The Economy in the Philippines has topped the expectations and is growing at a rapid pace
Being situated in a strategic location, and the government's principles in driving towards a better place to do business have helped foreign investors to keep a keen eye on the country and open an offshore company
- Business is done in the country in English
The Philippines has been a country that has always maintained a close relationship with the United States of America and has remained one of the leading investors in the country for decades. This has led the people in the Philippines to learn English, and also have most of the documentation written in English, which is unusual in most of the third world countries.
Process of Setting Up an Offshore Company in the Philippines
Once you have got an idea about setting up your company in the Philippines, here is the process to register your company in the Philippines. Be sure to consider these things to ease your filing of a company.
- A foreign investor cannot form a sole proprietorship business in the country without a massive investment (in case of a corporation, the amount is $250,000)
- A foreign investor can have a 40% stake in the company, and the minimum capital required is PHP 5000 (i.e. $1000)
The Process to Register Your Company in the Philippines
So, this is the procedure to follow to register your offshore company in the Philippines. Here are a few benefits of setting up a foreign company in the Philippines.
Benefits of setting up an offshore company in the Philippines
- Strategic Location
- Subsidized taxes for foreign entities
- Can Incorporate a company easily
- Ease of doing trade within the country
- Strong legal Framework of the country
- Stable and robust government within the country
- Very Cheap Labour Costs
- Good communication skills
So, these are some things you need to know about setting up an Offshore Company in the Philippines. We at Business Setup Worldwide do provide company setup services like incorporation, legal aid, audit services, accounting and bookkeeping services and much more. Contact us for more. We are here to help you out!