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$2500 ? - Creating A Simple Corporation In The Philippines


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NittanyLion

I am planning to create a business in the Philippines (consulting practice to introduce advanced manufacturing engineering software to Phils/Asia). This is new technology to the country. I've been advised to create a corporation.

 

I found a consulting company in Makati that quoted $1600 to register the 40% foreign owned corp with everything required, including the 5 board members, by laws, etc. Then $900 for the associated visa and work papers that I will require (2 year renewable visa...I've forgotten the visa type).

 

So, I'd like to discuss if this cost of $2500 is too much. Some things you can do on-line yourself...perhaps the entire thing....but doing the right things and navigating the bureaucracy here may be worth it. I want to do things legitimately.

 

What do you think?

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Alan S

It sounds expensive to me, although it is some years since I was involved in registering companies there.

 

I'm also not too sure on the 40% rule.

It might, stress MIGHT, be possible to locate on a PEZA one of which one (or more) caters for internet based companies.

If that is so, you could go for 100% ownership.

 

You can read through the rules on PEZA and BOI sites, and also one site (one of the major accountants) has cost details for registering companies.

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NittanyLion

I wonder if should have posted this in Businesses, Products & Services...not sure if I can fix that now.

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including the 5 board members

 

Will there be a monthly fee to keep them as board members ?

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Alan S

I wonder if should have posted this in Businesses, Products & Services...not sure if I can fix that now.

 

Thats a moot point, but I felt that leaving it here was the best option.

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When i had a corporation set up, i used an attorney, i was charged 25,000 peso's to get everything done, still had to run around and get some things done. it was only later after visiting the SEC that i found out that i could have done it all myself without too much effort, as they give you all the requirements and sample documents(By-Laws) if requested. just modify to suit your sitution on what you want to operate. i think it was estimated at about 4000 peso's, of course this amount varies depending on the capitalization that you intend to put in to begin with in your corporation part of the registration fee is based on a small percentage the amount of capital you put in. check out the Secureties and Exchange Commission website to get a better idea.

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batman2525

Hi.

I can only say that I formed a simple corporation in Florida with the help of my Florida based accountant and I was charged

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NittanyLion

When i had a corporation set up, i used an attorney, i was charged 25,000 peso's to get everything done, still had to run around and get some things done. it was only later after visiting the SEC that i found out that i could have done it all myself without too much effort, as they give you all the requirements and sample documents(By-Laws) if requested. just modify to suit your sitution on what you want to operate. i think it was estimated at about 4000 peso's, of course this amount varies depending on the capitalization that you intend to put in to begin with in your corporation part of the registration fee is based on a small percentage the amount of capital you put in. check out the Secureties and Exchange Commission website to get a better idea.

 

 

 

Great, thanks. Did the attorney process your visa (supported by the corporation you formed)? I wonder about that and any associated costs.

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DeezNuz

USD $2,500 is a small expense compared to all the money you'll be making, right?

 

That's how I usually go about thinking of things of that nature.

Edited by BigRob
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lazydays

Hi.

I can only say that I formed a simple corporation in Florida with the help of my Florida based accountant and I was charged

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Markham

Two off-topic post removed.

 

Kindly stay on-topic please.

 

 

In answer to the OP, the cost of registering a business should be around 15,000 to 20,000 Pesos depending on the type of corporation formed. The Corporation then needs to petition for a work visa and the costs for that are given on the Bureau of Immigration web site but you may also have a lawyer's fee to prepare and submit the paperwork.

 

 

 

Mark

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Two off-topic post removed.

 

Kindly stay on-topic please.

 

 

In answer to the OP, the cost of registering a business should be around 15,000 to 20,000 Pesos depending on the type of corporation formed. The Corporation then needs to petition for a work visa and the costs for that are given on the Bureau of Immigration web site but you may also have a lawyer's fee to prepare and submit the paperwork.

 

 

 

Mark

 

 

So even being the 60 percent share holder of your company you still need a work visa ? ? ?

 

Would there also be a monthly retainer to the other 40 percent board members to help keep the honest people honest ? ? ?

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How long does the registration process take from start to finish? Also, what if you are starting an export business where most of your revenue is exported, do you still need minority share holders?

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Lee From Cebu

I asked someone who just did this a couple months ago and he said with lawyers fees and everything else included it was just under 100,000 pesos ....He also said make sure you use a laywer

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Markham

So even being the 60 percent share holder of your company you still need a work visa ? ? ?

 

Would there also be a monthly retainer to the other 40 percent board members to help keep the honest people honest ? ? ?

 

Douglas, under normal circumstances, a foreigner can not own more than 40% of a corporation. There are, I believe, certain exceptions to this rule such as if it qualifies to be within one of the Economic Processing Zones. And yes, unless the foreigner has residential status, such as a 13(a) (spousal) Visa, then he needs a work permit and visa.

 

There is, of course, the Special Investors Visa, which is granted if you employ ten or more Filipinos in "real" jobs on a full-time basis but I believe even then there's a quite a high minimum in terms of paid-up share capital.

 

As regards to monthly retainers for the remaining 60% of board members, I think you're probably correct.

 

 

 

Mark

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