enspace Cebu

In recent years, the Philippines has seen a continuous increase in the number of companies established in the country, not only from Japan, but from all over the world.
The new coronavirus (COVID-19) pandemic has brought a temporary halt to new overseas operations, but these operations are now flourishing once again.

First, here are the advantages of expanding to the Philippines

1. The Philippines, one of the best English-speaking countries in Asia

English is used as a language in the Philippines, and it is commonly utilized in daily life in addition to their native Tagalog and Visayan languages,
English is used in school classes, company meetings, and shopping.
If we Japanese can speak even a little English, we can communicate directly with them and understand each other.
Even if your English is not that high, you can try to do business overseas in the Philippines.

2. A very large population of young people in their prime working years.

The population of the Philippines is estimated to be about 113.9 million (in 2021), and more recently has been increasing by about 1.5 million each year.
It is predicted that the population of the Philippines will overtake that of Japan by around 2030.
This population bonus is expected to continue until around 2070, making the Philippines the country with the longest continuous population growth in Southeast Asia, supported by an abundant labor force.
The average age of Filipinos in 2020 is about 24 years old (48.4 years old in Japan), which is very young, and many of them are in their prime working age.
Labor costs in the Philippines are still lower than in Japan, but many foreign IT companies are expanding into the Philippines because many Filipinos in professional positions such as IT engineers are highly skilled.
Western countries also highly value the English language skills of Filipinos and their aggressiveness at a young age, and are utilizing their high sales force to operate call centers and other businesses in the Philippines, employing as many as 1.32 million people (BusinessMirror.com.ph 2021).
The Philippines is a popular destination for immigration, and Cebu Island is particularly popular as a place to study abroad, and many Japanese people find jobs in Cebu after studying abroad.
When you want to hire Japanese staff in the Philippines, there are more opportunities to hire Japanese people than in other countries because there are many Japanese people living in the Philippines.

3. Strong pro-Japanese tendencies

Due in part to close and friendly national relations, the Philippines is known as one of the most pro-Japanese countries in Asia. In a survey of 100 men and women aged 18 or older in 10 Asian countries, more than 90% of respondents said they "like" or "love" Japanese people.
Relations between the Philippines and Japan are very good, with Japan being the Philippines' largest importer and one of its top three exporters,
In addition, Japan was awarded the first subway construction contract in the Philippines, and many Japanese technologies have been used in the construction of the country's infrastructure through infrastructure investment aid promoted by both countries.

At enspace Cebu, why they like Japan? The answers are as follows:

So, how to enter the Philippines?

The Philippines offers numerous advantages for expanding from Japan, but here we will explain the actual procedure for making inroads into the country.

Company Establishment

Executive Order No. 175, s. 2022, as amended.
https://www.officialgazette.gov.ph/downloads/2022/06jun/20220627-EO-175-RRD.pdf

JETRO (Japan External Trade Organization) has published a Japanese translation.
https://www.jetro.go.jp/ext_images/jfile/country/ph/invest_02/pdfs/ph7A010_negativelist.pdf

The Philippines Business Registration Office checks whether the business to be conducted in the Philippines is not one that is prohibited or restricted to foreign capital and foreigners in the Philippines.
Although the restrictions are relaxed each time,
As an example, retail businesses (including restaurants) are required to have a minimum capitalization of 25 million pesos on the negative list.
Note: Foreign capital engaged in retail business in multiple brick-and-mortar stores must invest a minimum of 10 million pesos per store, and this requirement is explicitly stated to be necessary even if the foreign retailer engages in online retail business.

フィリピンに進出する代表的な個人・法人 事業主 会社設立形態は以下の5通りです。
・現地法人
・支店
・駐在員事務所
・個人事業主
・パートナーシップ
・GEO(雇用代行)

■現地法人
近年、書類作成の手間や役所待ちの時間はかかるものの、現地法人設立はかなり明確な役所手続きになってきました、
フィリピンに本店を構える「現地法人」です。「株式会社」に相当し、日本企業がフィリピンに進出する際の代表的な形態です。
ネガティブリスト上にて払込資本金200,000ドル以下の国内市場向け企業は、株式の60%以上がフィリピン資本でなければならないとあります。
ただし、払込資本金100,000ドル以上の国内市場向け企業で、次のいずれかの条件を充たす場合、このような制限はないとしています。
A.先進技術(科学技術省が決定する)を利用していること
B.革新的新興企業法(Innovative Startup Act)に基づき、「スタートアップ」または「スタートアップ支援機関」として承認されていること
C.フィリピン人従業員を直接社員として15人以上雇用していること
設立の際はenspaceでは、新規の設立では2019年2月の新会社法を活用して、発起人2名もしくはそれ以上(15人まで)、取締役2名(日本に住む日本人でも可、15人まで)もしくはそれ以上、そして財務役と企業秘書役の任命が必要です、財務役はフィリピンに居住する方、企業秘書はフィリピンに居住するフィリピン人となっています。
国別の資本比率と取締役の国籍の比率を同じにする必要があります、フィリピン資本が60%以上と決められている業種の場合は、取締役の構成も60%以上がフィリピン人である必要があります。

■支店(支社) 
あくまで日本の本店のから延長とみなされ、現地に支店として営業展開する形態です。支店は本店と同一法人とみなされます。
日本企業の支店であるため、法的責任や債務も全て日本本社に帰属することになり、取引先から見れば与信などは確実なものとなりますが、リスクも本店に直接影響します。
活動内容に関しては現地法人と同様に特に制限はありません、外資の場合は現地法人と同様にネガティブリストが影響します。


■駐在員事務所
主に情報収集や宣伝活動の目的として設立され、フィリピン人顧客と本店との連絡事務所として機能します。
駐在員事務所では売上を立てること(営業活動)は禁止され、以下の活動のみが許可されます。

・市場調査
・日本本社製品のPR
・フィリピン国内の情報収集
・主に情報収集や宣伝活動の目的として設立され、フィリピン人顧客と本店との連絡事務所として機能します。


■OPC(一人会社)
役員が一人、株主も同一の1名で登記する会社の形態です、外資の場合は現地法人と同様にネガティブリストが影響します。
会社名にOPCの3文字を加える必要があります、
財務役/秘書役は現地法人と同様に選任が必要です、
また、万が一亡くなったり事業を継続不可能になった場合に向けて代わりに経営を引き継ぐ方を登録する必要があります。

■個人事業主
個人事業主の登録はDTI(Department of Trade and Industry 貿易産業省 )にて行い、フィリピン人の飲食店や小売業に多く見られます。
外国人が個人事業主になるには20万US$同等の資本払込金とフィリピンに住むフィリピン人の共同事業主の登録が必要になります、日本人が個人事業形態で始めたい場合は、信頼のおけるフィリピン人パートナーを見つける必要があります。
法人格のない事業体を指します。個人と企業が同一視されるため、個人事業が負う責任や債務の支払責任は個人まで及びます。
事業用及び事業主個人資産すべてが差し押さえなどの対象となり、リスクが大きくなることが株式会社と大きく異なります、また外国人が個人事業登録をする際には、フィリピン人の居住代理人を全権委任者として選任する必要があります。
ネガティブリストの規制業種をフィリピン人以外が個人事業として行うことは認められていません、また外国人の個人事業主は基本的には20万USD以上の出資が求められる点に注意が必要です。


■パートナーシップ
ジェネラル・パートナーシップ、リミテッド・パートナーシップ、プロフェッショナル・パートナーシップを3種類のパートナーシップ形態があります。
パートナーシップは、少なくとも2人以上の自然人によって組織される事業体の一形態です、弁護士事務所や会計事務所等が対象となります、外資での投資は、株式会社同様にネガティブリストの影響を受けます。
株式会社と同様、パートナーシップは独立した法人格を有し、パートナーがパートナーシップの債務や義務に対して無限責任を負うゼネラル・パートナーシップ、1人または複数のパートナーが無限責任を負い、一部のパートナーが出資金までしか責任を負わないリミテッド・パートナーシップ、または、共通の職業を行使すること
のみを目的として設立されたパートナーシップであって、その収入の全てを専業の収益から得るプロフェッショナル・パートナーシップのいずれかに分類されます。

■■■GEO(雇用代行)
GEO(雇用代行)は、すでにあるGEOサービサーの現地法人を利用して、自社の事業を行う人材の雇用を代行してもらう海外進出形態となります。
非常に短期間に海外進出が可能となり、ほかの進出形態と比較して初期投資を最低限にしリスクを抑えることが可能です。
GEO(雇用代行)を活用すれば、最短1週間ほどで海外進出を果たせます。

A. 短期間で事業開始可能
B. 税務申告・給与計算・社会保障手続き・人事労務手続きは不要
C. 少ないリスクと初期投資で海外進出、万が一の撤退時に大きく手間のかかる法人清算は不要。
D. 海外の企業ではメジャーな進出形態、これから日系企業も活用が広がる。
特にまずは数名の雇用で事業をスタートし、その後事業の拡張に合わせて会社設立等を検討できることが特徴です。

The Philippine Economic Zone Authority (PEZA) is a special economic zone. When considering the use of preferential treatment, it is necessary to set up the area for starting a business and the amount of capital to obtain approval. Before proceeding with the establishment of a company, it is necessary to confirm the necessary items to meet the criteria and proceed with the procedures.

Advantages,
Exemption from corporate tax (25%) for 4 to 8 years.
After the corporate tax exemption, a special tax will be applied.
Foreign workers can be hired under a special VISA.
Tax deductions for employee training and other human resource development expenses
Exemption from import duties on machinery, spare parts and raw materials
Permanent residence is guaranteed for foreign investors and their family members.
However, these preferential systems do not apply outside of the PEZA zone, so choose the area where you will start your business carefully.

Of course, this PEZA application and maintenance requires time and cost, and should be carefully considered.
If you wish to take advantage of preferential treatment in a special economic zone (PEZA), you should consult with a local expert before beginning the company incorporation process.

The name of the new company may not be used if there is already a company in the Philippines with a similar or identical name. Make sure to confirm or reserve the name with the SEC as soon as possible. Reservations can be made even before filing for incorporation with the SEC and are valid for 90 days.

The Articles of Incorporation prepared at the time of incorporation must include the company’s address in the Philippines. Real estate properties can be difficult to find in a short period of time, so it is advisable to secure one as soon as possible.
At first, it is okay to use a rental office or address rental service instead of a full-fledged office. Once you find a property, you should sign a temporary contract.
Of course, we recommend using our enspace IT Park Branch Business Park Branch.

When establishing a local corporation in the Philippines, we recommend two or more incorporators, all of whom must own at least one share. The incorporator need not be a resident of the Philippines at this time. It is recommended that the incorporator be a person who will become a director after the incorporation.

会社設立申請に必要な書類、日本の親会社にあたる株主企業の定款・株主の住民票・パスポート写し、全て英訳文を付け日本の外務省でアポスティーユ認証したものを準備します、

株主が法人の場合はその会社の役員会議事録が必要です、その内容は海外関連会社設立の決議を示したもの、業務目的や社名などを明らかにする必要があります、

■会社名
■事業目的
■会社住所
■発起人の個人情報
■取締役
■資本金額
■財務役

Once you have entered all of your company’s information on the SEC’s website, you will receive a PDF file of your company’s application for incorporation, provisional articles of incorporation, and other documents by email. It is recommended that you review this information with your attorney, and if you have any questions or would like to consult with the SEC, we recommend that you do so through your attorney.
If the SEC determines that your business type falls under the negative list or if your paid-in capital is insufficient, the SEC will inform you that you will not be accepted.
Since this is a bureaucratic process in the Philippines, it may take some time and things may not go as smoothly as you would like.
Once the SEC approves your application, you will be notified and all the documents you need to sign will be available for download from the SEC’s designated download site, complete with all the required information.

Once the bank of your choice is selected and the company bank account is opened, pay in the amount of capital as stated in the Articles of Incorporation.
After obtaining the proof of remittance from the bank, the capital from abroad must be registered with the Central Bank of the Philippines as a BSRD, which enables the bank to exchange pesos for foreign currency when the company later makes a profit, recovers its investment, or reduces its capital with compensation, and is also useful as documentation to be submitted to the tax office.
Be sure to register with the Central Bank of the Philippines.

Register your company’s taxpayer identification number with the BIR (Bureau of Internal Revenue) and obtain a TIN number (taxpayer identification number).

A business permit is obtained by applying for one at the municipal office of the municipality where the office is located.
The fire department, health department, and construction permit checks are conducted. Please note that it may be difficult to obtain a construction design for an Occupancy Permit if you are applying for a business permit for a small construction project such as a vacant building.

Acquisition of real estate
Construction Permit
Application for Occupancy Permit
Pass Fire Inspection
Passed the Health Inspection

The following three are social security systems for executives/employees.
SSS is a social security system that includes pensions, maternity benefits, and one-time contributions in case of disasters.
Phil Health is a medical insurance plan.
Pag-Ibig is a mortgage and savings plan.
(In the Philippines, you must register for these programs before you can hire a new employee.

GEO

Global Employment Outsourcing

Global Employment Outsourcing (GEO) is a service in which a company outsources employment-related tasks to a specialized external company. Known in Japan as “overseas employment agency,” companies outsource complicated tasks such as employee payroll, tax procedures, and employment contract management to GEO providers, allowing them to focus on their own business.

The GEO provider assumes legal responsibility as the employee’s employer and serves to spread the risk. This allows companies to ensure legal compliance while increasing flexibility.

What are the financial requirements for starting a business or establishing a company in the Philippines?

The largest amount of capital required for starting or establishing a company in the Philippines is paid-in capital.

For companies for the domestic market, the minimum paid-in capital is as follows

No advanced technology and no more than 50 direct hires: $200,000 or more

Use of advanced technology or direct employment of 50 or more: $100,000 or more

For an export-oriented company, the Philippine Company Law states that “5,000 pesos (approximately ¥12,300)” is required. In reality, however, incorporation is not permitted with this amount, and it is said that at least “200,000 pesos (approximately 500,000 yen)” is required.

If the amount of capital paid in is lower than the total annual income of the hired foreigner’s employment contract, the foreigner may not be issued a foreigner’s employment permit and may not be able to obtain a VISA.

When starting a business or establishing a company in the Philippines, the following points should be noted

Risk of company takeover

In industries subject to foreign investment restrictions, the percentage of shares that can be owned by foreigners (Japanese nationals) is limited. There are cases where a joint venture company is established with a Filipino partner, but in such cases, be very careful as the company can be taken over.

Weak infrastructure

The Philippines has weak infrastructure. The resulting traffic congestion and delays can cause significant economic losses.

Keep in mind the precautions for a successful startup in the Philippines.

The Philippines, with its special economic zones, continuing demographic dividend period until 2050, and pro-Japanese character, is a country with great advantages for Japanese to start a business. However, there are also some points to note, such as the risk of company takeover and the fragile infrastructure. Please pay close attention to these precautions to ensure the success of your business startup in the Philippines.

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