As part of the Multinational Group's services, we advise foreign entities on how to do business in the Philippines. Our Advisory Services seek to assist prospective investors in the required registration procedures, as well as advise them on such matters as taxation and investment incentives, policies and avenues.
Why invest in the Philippines?
- The Philippines is strategically situated in the Asia Pacific, within two to four hours to Japan, South Korea, Taiwan, Hong Kong, Thailand, Malaysia, Singapore and Indonesia.
- There is a wide pool of English-speaking, highly literate and trainable manpower base.
- The country has a large potential market for consumer goods on account of its fast growing population.
- It has a foreign-investor friendly environment as evidenced by the liberalization of investment and foreign exchange policies and the deregulation of certain vital industries as banking, insurance and telecommunications.
- The development of world-class infrastructure systems is a priority of government.
- The Philippines is a member of the World Trade Organization and signatory of the Asean Free Trade Agreement (AFTA), manifesting the country's commitment to open trade.
Getting Started
Before a foreign corporation or investor can open an office in the Philippines, it must first secure the necessary licenses or registration certificates from the appropriate government bodies.
- Securities and Exchange Commission (SEC) - registration of corporations and partnerships
- Board of Investments (BOI) - registration for incentives
- Philippine Economic Zone Authority (PEZA) - registration of export firms (for those locating in any of the country's economic zones and availing of incentives).
- Bangko Sentral ng Pilipinas (BSP) - registration of foreign investments for purpose of capital repatriation and dividend remittance using funds sourced from the banking system
- Bureau of Internal Revenue (BIR) - securing tax identification number
- City Halls/Municipal Offices in various localities - securing building permit and license to do business in the area of operation
- Social Security System (SSS) - securing employer's SSS number
- Philhealth - securing membership in the government health care benefits system
- - Special permits/Clearances/Registration from the following agencies (if applicable):
- Bureau of Immigration
- Department of Labor and Employment
- Garments and Textile Export Board
- Bureau of Customs
- Department of Environment and Natural Resources
- Housing and Land Regulatory Board
- National Housing Authority
- Department of Agrarian Reform
- Bureau of Patents, Trademarks & Technology Transfers
- Bureau of Product Standards
- Bureau of Food and Drug
- Department of Tourism
- National Telecommunications Commission
- Office of Energy Affairs
- Bureau of Mines and Geo-Sciences
What are the major incentives available to a BOI-registered enterprise?
A BOI-registered enterprise is entitled to such incentives as the following:
- Income tax holiday for six years for pioneer firms and four years for non-pioneer firms.
- Tax credit on raw materials, supplies, and semi-manufactured products.
- Additional deduction from taxable income for labor expense.
- Additional deduction from taxable income for necessary and major infrastructure works.
- Capital equipment incentives.
- Other non-fiscal incentives such as employment of foreign nationals, guaranteed repatriation of foreign investments and earnings thereon and importation of consigned equipment for an unlimited period.
- Enterprises operating within Ecozones shall be entitled to other incentives as provided for by PD 66 or Book IV of EO 226.
Helpful Addresses
- BOARD OF INVESTMENTS (BOI)
Industry and Investments Building
385 Gil Puyat Avenue, Makati City
Telephone: 890-1332; 897-6682; 890-9308; 895-3640 - SECURITIES AND EXCHANGE COMMISSION (SEC)
SEC Building, EDSA near Ortigas Avenue
Greenhills, Mandaluyong, Metro Manila
Telephone: 727-4543 - BANGKO SENTRAL NG PILIPINAS (BSP)
Vito Cruz corner Mabini Street
Ermita, Manila
Telephone: 524-7011 to 78 - THE ONE STOP ACTION CENTER FOR INVESTMENT (OSAC)
Ground Floor, Industry and Investments Building
385 Gil Puyat Avenue, Makati City
Telephone: 895-8322; 896-7342
