With the country’s GDP forecast to grow by 6.8% and 6.9% in 2018 and 2019, respectively, now is a great time to open a business in the Philippines. Of course, this is easier said than done, especially for foreign investors. If you’re a foreign entrepreneur exploring the idea of starting your business in the country, here are three factors to look into.
Like in any other country, you have to secure permits and certificates from government agencies to legally operate a business in the Philippines. These include, among others, the mayor’s business permit and the registration certificates from the internal revenue and securities and exchange bureaus. If you’re hiring local employees, you must likewise register with labor-related government agencies. You’ll also need custom clearance in the Philippines if you’re bringing in raw materials, equipment, or goods for the operation of your business here.
When it comes to the labor market in the country, there are far more job seekers than employers, so it wouldn’t be hard to find people willing to work. What’s more, the average wage in the Philippines is lower than that of many other countries. In terms of qualifications, many Filipino job seekers have a college degree and a decent command of written and spoken English, making them highly trainable.
Lastly, your place of business is another important matter you should be studying. The Makati CBD, Ortigas Center, and Bonifacio Global City are the main financial districts in the Philippines. However, you should still consider other locales like Valenzuela City, Cebu City, and Davao City, which are known for their ease of doing business. There is also San Fernando, Pampanga (north of the capital Manila) where the next central business district is expected to rise.
The Philippines, with its fast-growing economy, is a great place to invest in. Should you wish to explore business opportunities there, you can start by looking into three important factors: requirements, manpower, and location.