Jump to content

Agricultural bussiness in the PH


Recommended Posts

Anyone got some dibs on how to run an agricultural business in the PH.

 

Reading from the foreign ownerships laws any foreigner is not allowed to run an agricultural business in the Philippines.
My question is, isn't there a way to evade this law. In the sense of having a Filipino spokesperson (maybe a lawyer or so) who is the owner

of the grounds and business on paper. But evidently has nothing to do with running the business itself but rather is a paid on a contract base to

be on the business permits.

 

I'm trying to figure this out, what is the best choice for the equation without having the hassle of putting it on your girlfriend/wife (other relatives) name with all the dangers of something going wrong in that way. I rather not involve myself with going in hands with another Filipino investor who would be the sole proprietor of the business in the same way as with your wife.

 

 

 

please don't tell me about the fact that every filipino is going to run away with money and or business, cause that doesn't help solve any of the questions. obviously it's a thing to watch out for.. no need to preach to the choir.

Link to post
Share on other sites
Dolsos

edit :  I didn't notice your disclaimer!  Not trying to preach

Edited by Dolsos
Link to post
Share on other sites
Runian

whatever you do u will be at odds with the anti dummy laws, so stay well under the radar. 

 

find a few ppl and make them owners, then u have them sign a paper that they leave u in charge of the company for a yearly fee. 

 

this is against the law and I feel the closing and/or deletion of this thread is forth coming.

 

Link to post
Share on other sites
Knowdafish

Thinking out loud.....

 

How about: it is all set up as a corporation and all that the Philippine law requires, but.....

 

the corporation leases the whole thing to you, long term, for a reasonable yearly fee?

Link to post
Share on other sites
Davaoeno

My first corporation here was called XXXXX Agriland Corp .  Duly registered with the SEC.  I bought chicken shit in General Santos and sold it to several Sumifru locations for banana plantations. 

 

The attorneys at the SEC had no problem with my doing that business.   I was Corporate Chairman and held 40% of the corp shares

Edited by Davaoeno
  • Like 1
Link to post
Share on other sites

My first corporation here was called XXXXX Agriland Corp .  Duly registered with the SEC.  I bought chicken shit in General Santos and sold it to several Sumifru locations for banana plantations. 

 

The attorneys at the SEC had no problem with my doing that business.   I was Corporate Chairman and held 40% of the corp shares

This is not Agricultural bussiness!

This is shit business!

  • Like 1
Link to post
Share on other sites
BlueFin

In the sense of having a Filipino spokesperson (maybe a lawyer or so) who is the owner

of the grounds and business on paper. But evidently has nothing to do with running the business itself but rather is a paid on a contract base to be on the business permits.

 

Yes that is essentially how to do it - and I've seen it done successfully like this.

 

1) Pay the attorney to open a corp here in PH using five Filipino's (you are not even on the corp)

 

2) The corp then makes a borad resolution that appoints you (the Director) as the sole person to open a Bank account (Metrobank is suggest).

 

So now the bank talks only to you and you are the only one with access. Metro bank has some good online services where you can transfer funds

to staff electronically using "Payment Cards" (ATM cards).

 

You keep the attorney on a monthly retainer (anything up to 10K is reasonable)

 

You then also need an accountant on retainer (anything up to 5K is reasonable)

 

Now you can conduct your business.

 

Business .. keep a low profile, do not upset anyone, do not lend any money, do not borrow any money - this will maximize your chances of not being murdered.

 

When you get shafted just accept it, cut your losses and move on - it's all part of the business cycle here.

 

Also .. hire only one person and have them do all the other hiring and firing (so they get shot by disgruntled employees and not you).

 

Good luck.

  • Like 1
Link to post
Share on other sites

Thanks for the tips and info..

I'll try to investigate in it. Sitting on the gray area of the law isn't that big of a deal i guess. As long as you keep a low profile.

Link to post
Share on other sites
thebob

Just because you can get the paperwork signed doesn't mean it is legal. Just because a lawyer says it's OK doesn't mean that it is legal.

 

This could come back to bite you at any time.

Edited by thebob
  • Like 1
Link to post
Share on other sites
Runian

Now that we know how to start a biz I ponder how to get a work permit being the director of zed biz ? 

 

I understand it is off topic but I think it to be a normal evolution of it, if not sorry for the infraction 

 

Link to post
Share on other sites
Headed that way

If you can export 100% of your product you might be able to own the majority of the stock outright in a general partnership.  It works that way for manufacturing as long as you export over 60%.  Minimum capital requirments, $1500 is enough for the SEC.   The Philiipines government loves exporters. But be warned there is a gauntlet of beaurocrats to run but it can be done if you have someone on the ground locally and are persistant.

  • Like 1
Link to post
Share on other sites
Bill H

As long as you accept you may very well loose every penny you put into the business go for it.  I like the idea of the products going solely for export as that way you can keep the money out of the PH sending in only enough to pay expenses.  Still it is a risky proposition at best.

Link to post
Share on other sites
easy44

Just because you can get the paperwork signed doesn't mean it is legal. Just because a lawyer says it's OK doesn't mean that it is legal.

 

This could come back to bite you at any time.

Very true.  Lawyers here will draw up just about anything you ask, whether legal or not, as long as you pay them.  It would be wise to see if your scheme has been tested in court before going through with it.  Similar to foreigners who say they know an official who will issue them a gun permit.  You may get the piece of paper but you will still be illegally owning a gun.

  • Like 1
Link to post
Share on other sites
Headed that way

RIsky it is even with a trusted partner on the ground there.  But the labor is around ten times cheaper than the U.S. so the gains would be worthwhile.   You don't compete with the locals for scarce sales, anything you produce is worth far more in your home country, and like you say only the expense money is at risk and of course any investment int setting things up.   Plus they will always need you to keep the sales going and the payroll and expense money coming in.

 

We are producing product and stockpiling for the first container while we sort out the export paperwork.  Until we actually get the first container back to the U.S. it is all just a big, expensive, adventure.  The key is going to getting containers coming out on a regular basis which opens up a world of possibilities.

 

But for now I get to visit the Philippines tax free and help out a friend living there.   Gonna be one hell of a ride even if it fails.

  • Like 1
Link to post
Share on other sites
ThomsonJr

 I agree... it's okay as long as you don't get involved too much with the local business people.

Link to post
Share on other sites
Guest
This topic is now closed to further replies.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and Guidelines. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..