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$2500 ? - Creating A Simple Corporation In The Philippines


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Markham

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

 

Typically the cost of setting-up a business here is 15,000 Pesos. That is what I was quoted by a lawyer to establish a not-for-profit Corporation last year and a quite separate lawyer quoted the same amount to the Ancient One a few months ago. You can reduce that amount quite considerably if you do all the running-around to the various national and local government offices to obtain the various permits etc.

 

 

 

Mark

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...under normal circumstances, a foreigner can not own more than 40% of a corporation.

 

 

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

 

Mark

 

 

Sorry I ment 40 percent.

 

How much is a good retainer per month to keep the Filipino board members happy ? ( anyone can answer )

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NittanyLion

WHAT I'VE LEARNED SO FAR:

 

1. Use a lawyer to start a business. You can use a consulting company, but more expensive...and you should still talk to a lawyer even if you do use a consulting company.

 

2. The cost should be around P15-20k min to setup the business. $1600 is very high cost (consulting company in Makati).

 

3. The created corp with lawyer petitions for visa and work papers. Costs on immigration.gov.ph (site was down) $900 prob way too high.

 

4. It's probably best to obtain the lawyer in the area where the business will reside.

 

 

Thanks for the help so far.

 

I do still wonder about corporate structure so that I (the 40%) am protected. Board Members aren't employees of the corp so I want to make 100% sure that the income from the business is mine...not theirs.

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NittanyLion

RECEIVED THIS FROM A DIFFERENT CONSULTING COMPANY IN MAKATI (so expensive):

 

Business Registration Costs

 

The entire business registration usually costs $800 in government fees. We charge a fixed professional fee of $1,200 for SEC registration, SSS, Phil-Health, and Pag-ibig, $250 for BIR registration and $250 for Mayor's permit. The scope of services includes registration with the SEC, preparation of the Articles and By-Laws, securing a Taxpayer's Identification Number (TIN) with the BIR, opening bank account and obtaining a Mayor's and Business Permit. Registration with the Securities and Exchange Business is the first and most important step to legally doing business in the Philippines however, it does not end there. Local government units and other government agencies have separate filing requirements. We ensure that your business registration is complete.

 

 

Business Registration Time-Frame

 

The overall registration process with the bank and all of the government agencies takes 4 - 6 weeks. SEC registration alone can be completed within only 2 weeks.

 

 

Business Enterprises for Foreign Investors

 

There are different types of company formation which a foreign investor may choose from in setting up his business in the Philippines - a branch, corporation, a representative office, or regional headquarters. One important consideration to company formation is legal liability. A domestic corporation limits potential legal liability of the parent company because it acquires a juridical personality distinct and separate from that of its parent or shareholders. In contrast, a branch merely becomes an extension of the parent company and for purposes of investment law is considered fully foreign owned.

 

 

Fully Foreign Owned Company

 

If your future company in the Philippines is a domestic corporation exporting goods or services or generating revenue from abroad amounting to more than 60% of its gross sales it can be fully foreign owned, as it is considered an Export Enterprise under the Foreign Investments Act. Both branch and domestic corporation options can be registered with as little as P5,000 paid up capital. However, most banks require P25,000 - P50,000 to open a corporate bank account.

 

 

Accounting & Payroll

 

Our in-house CPAs can handle your monthly accounting and payroll while complying with local laws and remitting to the government agencies. We charge roughly $425 per month for generally accounting and roughly $8 for payroll per employee per month.

 

 

 

Work Visas & Permits

 

We can also facilitate 9G work visas and Alien Employment Permits for your foreign employees. We charge US$900 in professional fees for visas which are exclusive of government fees and costs which are around $750.00. Our fees for additional staff if applying within the same month are 50% off or US$500.00.

 

 

 

 

 

HR Recruitment

 

We conduct a systematic procedure in selecting qualified candidates, from sourcing to conducting interviews and examinations. We cater to mid and large-size organizations, from rank and file to executive level, across all types of industries. We work on a contingent/success arrangement. Our total recruitment fee will be 1/12 of the Annual Gross Salary of the candidate and any other bonuses or benefits granted.

 

 

 

Employment Contracts & Employee Manuals

 

Labor laws in the Philippines are very strict and very much on the side on the employee. Solid employment contacts accomplied by a employee manual is essential. Our labors laws can either draft general contacts and manual or customize these documents to your specific company and employment needs. The total for this is $730 total for a probationary employment contact, regularized employment contract and employee manual.

 

 

 

 

Office Space, Seat Rentals & Incubation

 

We provide leased office space, temporary office space, call center seat rentals and incubation for our clients inside of our own office in Makati as well as other offices throughout Metro-Manila.

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Alan S

They may be expensive but at least they spell out the options clearly.

 

You can do almost all of it yourself, thus saving money and learning a lot in the process.

 

 

If you do have any chance of getting foreign income and can apply to PEZA or via the BOI under the Foreign

Investment Acts, you will find that both organisations take care of much of the paperwork for you. And that is part of their (free) service.

(There are also tax advantages.)

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I do still wonder about corporate structure so that I (the 40%) am protected. Board Members aren't employees of the corp so I want to make 100% sure that the income from the business is mine...not theirs.

 

 

Did you get a quote on how much it costs for the dummy Pinoy shareholders ?

 

Is it a one time fee or a monthly retainer ? What are those costs

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NittanyLion

I do still wonder about corporate structure so that I (the 40%) am protected. Board Members aren't employees of the corp so I want to make 100% sure that the income from the business is mine...not theirs.

 

 

Did you get a quote on how much it costs for the dummy Pinoy shareholders ?

 

Is it a one time fee or a monthly retainer ? What are those costs

 

 

Didn't get any quote on that part. But, still is a big concern.

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Didn't get any quote on that part. But, still is a big concern.

 

yeah I am also very interested to know the cost and how it works.

 

Thanks for taking the time so far to post what you have learned in setting up a simple corp in the Phils.

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  • 2 weeks later...
NittanyLion

Didn't get any quote on that part. But, still is a big concern.

 

yeah I am also very interested to know the cost and how it works.

 

Thanks for taking the time so far to post what you have learned in setting up a simple corp in the Phils.

 

 

 

You can contact me offline to discuss further if you want.

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You can contact me offline to discuss further if you want.

 

 

How do I contact you ?

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NittanyLion

You can contact me offline to discuss further if you want.

 

 

How do I contact you ?

 

 

SPAMbots love it when you post your email address on an open forum. - Paul

Edited by Admin
Email address removed. - Paul
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