How can foreign couple open restaurant in Philippines

Good Morning;
Then you must first know what the meaning of 'silent partner' is!

you sure they own it?

Yes, I'm sure they own it, they are couple of foreign countries and it's themed by their country food etc, and yeah they are the owners 100% as they building some guesthouse  as well, so was just wondering how is that possible

i3ar wrote:

Yes, I'm sure they own it, they are couple of foreign countries and it's themed by their country food etc, and yeah they are the owners 100% as they building some guesthouse  as well, so was just wondering how is that possible

Hi and welcome to the forum, hope you enjoy and contribute further.

"I'm sure they own it" ? Have you taken the time to talk to these people to find out how they have succeeded? Currently there is a big clamp down/shut down of foreign owned businesses here that don't conform.
The couple you mention may be naturalised foreigners, they may have taken up the SIRV and as others have mentioned "silent partners/investors" or other means.
Perhaps it's better to go and introduce yourself and get it straight from the horses mouth so to speak instead of guessing?

There are plenty of options and will take a lot of research but hey that's what business is about.
Good luck and I do hope you find your answers.

Cheers, Steve.

Other than being naturalized citizens, as mentioned by Big Pearl, the relevant law is listed below. They may have had a good lawyer set it all up if this is the route they went. I am curious why you ask us instead of them.

http://boi.gov.ph/ufaqs/2-can-a-foreign … ss-entity/
2. Can a foreign investor be allowed to own a 100% of a business entity?
Yes, one hundred percent (100%) foreign equity may be allowed in all areas of investments under the Foreign Investments Act (FIA) R.A. 7042 except those included in the Regular Foreign Investment Negative List (FINL).

http://boi.gov.ph/r-a-7042-foreign-inve … t-of-1991/
Foreign Investments Act (FIA) R.A. 7042
Section 2
As a general rule, there are no restrictions on extent of foreign ownership of export enterprises. In domestic market enterprises, foreigners can invest as much as one hundred percent (100%) equity except in areas included in the negative list.
SEC. 3. Definitions.
f) the term “domestic market enterprise” shall mean an enterprise which products goods for sale, or renders services to the domestic market entirely or if exporting a portion of its output fails to consistency export at least sixty percent (60%) thereof; and

g) the term “Foreign Investments Negative List” or “Negative List” shall mean a list of areas of economic activity whose foreign ownership is limited to a maximum of forty percent (40%) of the equity capital of the enterprises engaged therein.

SEC. 7. Foreign Investment in Domestic Market Enterprises. Non-Philippine nationals may own up to one hundred percent (100%) of domestic market enterprises unless foreign ownership therein is prohibited or limited by the Constitution existing law or the Foreign Investment Negative List under Section 8 hereof. (As amended by R.A. 8179)

SEC. 8. List of Investment Areas Reserved to Philippine Nationals (Foreign Investment Negative List). – The Foreign Investment Negative List shall have two (2) components lists; A, and B.

a) List A shall enumerate the areas of activities reserved to Philippine nationals by mandate of the Constitution and specific laws.

b) List B shall contain the areas of activities and enterprises regulated pursuant to law:

1) which are defense-related activities, requiring prior clearance and authorization from Department of National Defense (DND) to engage in such activity, such as the manufacture, repair, storage and/or distribution of firearms, ammunition, lethal weapons, military ordinance, explosives, pyrotechnics and similar materials; unless such manufacturing or repair activity is specifically authorized, with a substantial export component, to a non-Philippine national by the Secretary of National Defense; or

2) which have implications on public health and morals, such as the manufacture and distribution of dangerous drugs; all forms of gambling; nightclubs, bars, beerhouses, dance halls; sauna and steam bathhouses and massage clinics.

“Small and medium-sized domestic market enterprises, with paid-in equity capital less than the equivalent two hundred thousand US dollars (US$200,000) are reserved to Philippine nationals, Provided that if: (1) they involve advanced technology as determined by the Department of Science and Technology or (2) they employ at least fifty (50) direct employees, then a minimum paid-in capital of one hundred thousand US dollars (US$100,000.00) shall be allowed to non-Philippine nationals.

Talk to other expats who've already done the same?
Talk to DTI to get some steerage from the ‘rule' book if there is one.
Keep your operation small at first to make sure pinoy want what you serve up.
Location, location, location.

It is easy, just need to bribe few people and that's it. Especially if small town.

eduardo001 wrote:

It is easy, just need to bribe few people and that's it. ***Especially if small town.

Thank you guys for replies and help.
Yes, I want to talk to them however I'm not in the Philippines now maybe hopefully will visit this summer and will talk with them but since its quite long of time till summer, I decided to research a bit online before that and maybe get some valuable information my self.
Does anyone of you own restaurant or similar or most some online business?

Helo good morning i m from Turkey i what to open resturant how to can u tell .me

https://ankarape.dfa.gov.ph/

The visa section in the Philippine Embassy site in Ankara has the hints. I think it will fall under Investor visa.

Have you ever even worked in the restaurant business? Let alone owned one in your country. I couldn't imagine how hard it would be to become profitable here without bar fines. I'm joking, but only slightly.

@i3ar

it's not that hard. You hire a lawyer  and get 4 Filipino friends to hold 60 percent shares of your corporation   And then 30 seconds later they sign over the shares and the lawyer holds them. The government frowns on it but they allow it

If you open up a Gyros Pita Shoppe, I'll be your first customer.

@i3ar
it's not that hard. You hire a lawyer and get 4 Filipino friends to hold 60 percent shares of your corporation  And then 30 seconds later they sign over the shares and the lawyer holds them. The government frowns on it but they allow it
-@Randall Roy

Thats ILLEGAL, OBVIOUSLY breaking the "Anti-Dummy law"...

No need of lawyer to break the law 

More than one have said tourism with mainly foreign customers can be counted to  "export business" which foreigners can own whole of.

but I dont know if its true, I havent seen any such supported by any law I have read,

many more say wrong about its impossible for foreigners to own land partly 

@i3ar
it's not that hard. You hire a lawyer and get 4 Filipino friends to hold 60 percent shares of your corporation  And then 30 seconds later they sign over the shares and the lawyer holds them. The government frowns on it but they allow it
-@Randall Roy

They would need to be four very trustworthy friends. What is to stop them not signing back over the shares once the lawyer draws up the initial contract. I imagine they could ask for quite a bit of cash to sign their shares back over if they got greedy or maybe they may think it best to hold onto them for a while.

@i3ar
it's not that hard. You hire a lawyer and get 4 Filipino friends to hold 60 percent shares of your corporation And then 30 seconds later they sign over the shares and the lawyer holds them. The government frowns on it but they allow it
-@Randall Roy
They would need to be four very trustworthy friends. What is to stop them not signing back over the shares once the lawyer draws up the initial contract. I imagine they could ask for quite a bit of cash to sign their shares back over if they got greedy or maybe they may think it best to hold onto them for a while.
-@Cherryann01

As I told thats ILLEGAL anyway.

Except in "export businesses" foreigners are NOT allowed to have majority owning nor majority control, which such contracts would be so they arent valid.

It isnt even allowed with foreigner majority knowledge!!!  (That made my business start became later by it took years to find a Filipino with suiting and enough knowledge to make the needed compleeting knowledge a minority.)

***

Hello,

Kindly note that some posts have been removed.

Like always, I would like to remind you to please remain polite and respectful on the forum.

Thanks,

Yoginee

Expat.com team

@coach53

Coach, i would like to just see a string of posts where you provide meaningful opinions, insights, or share knowledge from past experience, without feeling compelled to be combative with others or trying to stir the pot like some abused bully taking his domestic problems out on everyone else in the school yard.

I am challenging you on that. show examples of just 3-5 posts where what you say is appreciated, has some courtesy, and from what can be derived wherein others can actually benefit. can you actually do that ?

Coach has not been taking his medication again. Nurse!

@coach53
Coach, i would like to just see a string of posts where you provide meaningful opinions, insights, or share knowledge from past experience, without feeling compelled to be combative with others or trying to stir the pot like some abused bully taking his domestic problems out on everyone else in the school yard.
I am challenging you on that. show examples of just 3-5 posts where what you say is appreciated, has some courtesy, and from what can be derived wherein others can actually benefit. can you actually do that ?
-@kristopherryanwatson

Cant you read? 

I have written A LOT and DETAILED posts - before I stoped doing that after I stoped that after admins have protected the three liars/false insinuators to many times - of such mainly concerning

/law thingies within business, real eastate (and inheritance) in foreigner point of view

/and my EXPERIENCES from having business in Phils.

I have three such just in this topic...

How come you repeetingly write against me but NEVER against the three liars/false insinuators...? 

Coach has not been taking his medication again. Nurse!
-@Lotus Eater

And there is one more from one of them moderators protect!!!

Foreginers can now have a Sole proprietor now, but with a cap of 3 million (Income).

The criteria to establish a sole proprietorship in the Philippines:

Be a single owner of the business

Have a Special Investor's Resident Visa

Be the sole beneficiary liable to responsibilities, profits, and losses.

Note: The sector you operate in should not have foreign equity restrictions. I am not sure what this is other than list A and B, so assuming a restaurant is OK?

Benefits of setting up a sole proprietorship in the Philippines:

You are the sole supervisor of all your business operations

complete control over the decision-making process

There is no separate taxation for the business

The tax rate for self-employed individuals is 8%, provided their income is less than P3 million Not sure how that works when you break that cap, like a higher tax or needed to form a Corporation?

It is far  cheaper to set up a sole proprietorship than a Corp.

Given the above, unsure if you can have more than one SP, in otherwords if you own a Bistro, but want a deli section and a coffee house, if those can be separated entities to be under the 3 million cap?

You could just ask them or are you shy?