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HOW TO DO BUSINESS IN THE PHILIPPINES By: Atty. Rufino M. Margate, Jr. / Discover Philippines
Table of Contents
I. BUSINESS PLANNING, ORGANIZING& REGISTRATION 1. Business Plan 1.a Marketing Plan 1.b Viability Study 1.c Financial Plan 1.d Legal Due Diligence 2. Forms of business organization 2.a Single proprietorship 2.b Partnership 2.c Corporation 3. Registration with the Department of Trade and Industry4. Registration with the Securities and Exchange Corporation4.a Corporation 4.b Partnership 5. Registration with the Bureau of Internal Revenue6. Obtaining Licenses and Permits from the local Government. 7. Registration with the Social Security System and PhilHealth. 8. Registration with Pag-Ibig or Home Development Mutual Fund9. Registration with the Department of Labor and Employment. 10. Other Agencies
II. BUSINESS & INVESTMENTS OPEN TO FOREIGNERS1. General Policy 2. Export Enterprises vs. Domestic Market Enterprises3. Nationality of Investor4. Restrictions or Limitations to Foreign Investments4.a No Foreign Equity Allowed 4.b Up to 25% Foreign Equity Allowed 4.c Up to 30% Foreign Equity Allowed 4.d Up to 40% Foreign Equity Allowed 4.e Up to 60% Foreign Equity Allowed 5. Retail Trade
III. INCENTIVES TO INVESTMENTS1. Registering the business with the Board of Investments (BOI) 2. Locating the investment in the Special Economic Zones. 3. Establishing 100% Foreign-Owned Regional Headquarters (RHQs), Regional Operating Headquarters (RHQs) and Regional Warehouses (RWs) of multinational companies. 3.a Regional Headquarters (RHQs) 3.b Regional Operating Headquarters (ROHQ) 3.c Regional Warehouse (RW) 4. Investing in 100% Foreign-Owned It Business. 5. Individuals Foreigner’s Investment under SPECIAL INVESTORS’S RESIDENT VISA (SIRV), SPECIAL RETIREES VISA (SRRV) and SIRV in TOURISM- RELATED PROJECTS. 6. Other Incentives
IV. TAXATION 1. Income Tax 1.a Corporations (includes partnerships, etc.) 1.a.1 Domestic and Resident Foreign Corporation, in general 1.a.2 Income tax rates on passive income of domestic and foreign corporation. 1.a.3 Non-Resident Foreign Corporation 1.3.4 Corporations Improperly Accumulating Profits. 1.a Individuals 2. Withholding tax system: 3. Various Tax Treaties4. Value Added Tax 5. Percentage Taxes6. Excise taxes7. Documentary stamp tax8. Customs Duties9. Estate taxes10. Gift Taxes11. Local Taxes12. Real Property Taxes
V. LABOR LAWS & REGULATIONS1. State Policy on Labor 2. Security of Tenure 3. Hours of Work and Weekly Rest Days 4. Mandated Economic Benefits. 4.1 Minimum Wage 4.2 Overtime Pay work in excess of eight hours 4.3 Premium Pay for work within eight hours 4.4 Nightshift differential pay 4.5 Service incentive leave 4.6 13th Month Pay 4.7 Paternity Leave 4.8 Holiday Pay 4.9 Benefits under Collective Bargaining Agreements (CBA) 4.10 “Non-diminution” rule. 5. Social Security Benefits 6. Employment of young workers and women 7. Medical and Dental Facilities 8. Workers’ right to self-organization and Collective Bargaining Agreements 9. Sexual harassments in workplaces. 10. Employment of foreigners 11. Closure of Establishments, Reduction of Personnel and Retirement
VI. BANKSERVICES1. Deposit Products 2. Loan Products 3. Other Products / Services
VII. COST OF DOING BUSINESS1. Basic Monthly Salaries and Wages 2. Rental or Lease Rate 3. Cost of Utilities 4. Retainers fee of certain professionals and service contractors
VIII. IMPORT & EXPORT REGULATIONS1. The advent of trade liberalization2. Import Procedures2.a Registration as Importer 2.b Declaration by Filing a Written Entry 2.c Examination, Appraisal and Classification 2.d Release of Goods to importers 2.e Modes of payments of imports 3. The Tariff and Customs Code of the Philippines 4. Export Procedures |