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Is it easier or more difficult to start a business in The R.P. than The U.S. in regards to govt. regulations and cost? For forigners or Philippinos?


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I know it is extremly difficult for most Philippinos to get a job, but what about starting a business? I'm really thinking more about my wife's family than myself.

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ArieBombarie

just read the basic marketing stuff and reflect it on your family, everybody wants a business in PI but few have a clue what that actually means and even fewer can do the math

 

lots of small business because making a little is better then making nothing, lots of reading up to do for you, PI is a minefield for people trying to make family self sufficient or make a buck themselves, westerners often seem to get some arogance in the matter and make judgement calls they would never make in their own enviorment, if you want to help try to help the ones that try to help themselves, donation kind of stuff to boost what they are already doing, education so somebody can go OFW and suport their own.

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Easier to start, harder to make a profit, in most cases - for a foreigner.

Easier to start, harder to make a profit, in most cases - for a Filipino.

 

The difference here is, a Filipino can live here much cheaper than a foreigner.

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MarinePride

I too had my thoughts on a business when I got here and i quickly abandoned them, but that's just me. From what I see, unless you have big money and are really well organized, your business will consist of leasing a space somewhere and having a go at whatever. So will a lot of other people and the profit margin will be small because of that competition. You will be forced to go for volume and that can be a logistical pain in the butt.

 

My disclaimer is that I'm a cynical and pessimistic about most things that involve money here, so don't listen to me. I don't want to lose money and really cannot afford to start ventures that aren't going to pay off.

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Stranded Shipscook

I can't say its any harder or simpler than in Germany. I had several business in the past 25 years in both countries. What i like here is the rather passive attitude of the Tax offices or the Government, they seldom interfere. Once you have done the initial paperwork, its good again. There have been lots of improvements in the past year, now registrations and other requirements are much smoother.

 

But its easier in Germany to create a Market and "sell" his product. And of course, the profits in Germany are way higher then here.

 

On the subject of giving "non business" people a business i can not answer. there are two kind of people in the world:

 

Those which sell something and those which buy something. To sell something is harder then buying. Which limits the people which can do that.

Edited by G....
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Dont take the word of anyone here, (not even me!).

 

According to the World Bank, the Philippines is one of the hardest places in the world to do, or start, a business.

 

About the best and easiest is on one of the Export Zones.

They do try to make it easier and assist with much of the ground work.

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Julian C Thong

This question has been asked so many times yet the reply is always the same. If you have to ask, forget it.

 

People start a business because they have expertise, a desire to succeed and a good credit rating so they can borrow the working capital. Not all three are essential, ie you can have you're family to fund you or your just rich and want to do something else but if you're not good enough to get a job, even in the RP, why do you think starting a business is the way to making money?

 

If you search this site you will find scores of threads about how a kano funded his gf/wifes family and it all ended in tears. There will be a few exceptions, there always is, but finding the kano in the first place is the best way. My advise is just send the usual money payments and let them do what they want, saves the headaches and acromony.

 

Better yet, send the bright ones to a good school rather than have the family squander the money on a new flat screen or tanduay.

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thebob

Regulations and permits here are an absolute bear. If you do well they will retroactively find things you did not comply with.

 

RP is a place to spend money, not make it.

 

Unless you have a particular skill set that is not location specific, then even the legality of a foreigner starting a business can be a problem.

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ancienrocka

Ballpark figure to do it yourself including Mayor's Business permit, registering with BIR, SSS, Philhealth & PagIbig:-

  • Sole trader - 11k-12K
  • Corporation - 17K-18K

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TheMatrix

Much more difficult to start a business here in the Philippines! Much more difficult. (hands down)

For a home-based business, I had to register and get licenses/authorizations from seven (7) different gov't offices. Yah! That's crazy! In America, maybe one, but rare.

 

When registering, I realize how un-friendly of a business climate it is here and totally understand why many foreign businesses are scared away.

 

Opposite of what Paul (admin) feels, I think once started, it is easier to turn a profit here due to lower labor costs. Ease of marketing. A good businessman with any marketing savvy can easily win over customers here.

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As some one who has run and started biz both here and australia. Here is alot harder to make a profit. PI is also easy to lose money due to the lies and scams. Do your self a favor start a bpo biz here see how easy that is as it is the big thing here as it makes money.

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Much more difficult to start a business here in the Philippines! Much more difficult. (hands down)

For a home-based business, I had to register and get licenses/authorizations from seven (7) different gov't offices. Yah! That's crazy! In America, maybe one, but rare.

 

When registering, I realize how un-friendly of a business climate it is here and totally understand why many foreign businesses are scared away.

 

Opposite of what Paul (admin) feels, I think once started, it is easier to turn a profit here due to lower labor costs. Ease of marketing. A good businessman with any marketing savvy can easily win over customers here.

 

That is until your competition(indigenous type) sees you are taking money from HIS mouth. Then all bets are off and you need to start watching out for motorcycles with riders in tandem.

 

The locals do NOT like it when a poreigner is succeeding in their backyard. It makes them look inferior. Trouble soon starts.

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As some one who has run and started biz both here and australia. Here is alot harder to make a profit. PI is also easy to lose money due to the lies and scams. Do your self a favor start a bpo biz here see how easy that is as it is the big thing here as it makes money.

Thanks, but what's a bpo biz?
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Dont take the word of anyone here, (not even me!).

 

According to the World Bank, the Philippines is one of the hardest places in the world to do, or start, a business.

 

About the best and easiest is on one of the Export Zones.

They do try to make it easier and assist with much of the ground work.

Thanks. Where would I get more information on that?
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