Are foreigners allowed to establish a business in the Philippines

I am investigating buying an vacant Island and establishing a "Private Island hire" for up to maximum 20 people, either a Family/freinds group or couples who can afford to pay for privacy in Paridise, many options for advertising for this type, I have property in Vanuatu, Australia and Thailand so I am adverse in investing in Forein countries but not in Philippines. My total initial investment will be around 1 million US after purchase of Island and infrastructure, I have a filipina GF now for 4 years and she has always shown full respect and commitment, I had never spoken about money or investing in Philippines to her before and never mentioned the size of my portfolio. What is my best approach for investing, I am also a Brewmaster of Ethanol/Alcohol which I would be interested in producing my own brand and range of spirits on the island and finding a distributor to purchase the products for distribution throughout Philippines. I have had many Filipino's try my products and very supprising response from them all, some now cant drink their favourite spirits in the Philippines.  Serious advice and possible contacts for further discussions with Bussiness planers/Advisors.

I came to this thread by chance. I was searching for something and I saw this.. I registered just to give my thoughts.. I'm an online English teacher and have been in this job for almost 8 years now.. I guess this business is still doing good. and many Asians specifically Koreans, Japanese and Chinese are making money from this business,,@slippedisc  is asking for a good business to start with.. you can try a phone english company for non -english speaking Europeans.. If it works for Asians them it could also do well with Europeans.. just my thought.. Should you have any questions, feel free to ask.. Thank you

I came to this thread by chance. I was searching for something and I saw this.. I registered just to give my thoughts.. I'm an online English teacher and have been in this job for almost 8 years now.. I guess this business is still doing good. and many Asians specifically Koreans, Japanese and Chinese are making money from this business,,@slippedisc  is asking for a good business to start with.. you can try a phone english company for non -english speaking Europeans.. If it works for Asians them it could also do well with Europeans.. just my thought.. Should you have any questions, feel free to ask.. Thank you

I came to this thread by chance. I was searching for something and I saw this.. I registered just to give my thoughts.. I'm an online English teacher and have been in this job for almost 8 years now.. I guess this business is still doing good. and many Asians specifically Koreans, Japanese and Chinese are making money from this business,,@slippedisc  is asking for a good business to start with.. you can try a phone english company for non -english speaking Europeans.. If it works for Asians them it could also do well with Europeans.. just my thought.. Should you have any questions, feel free to ask.. Thank you

I wish you the very best with your 4 year G/F,However regarding buying an Island here? You cannot!!!!!! as NO foreigner can own land here in the Philippines but your G/F or wife can and if you think you can make it ,Good luck to you and start wearing Pajamas as . you will need them when you are dreaming.Best wishes and the BEST of Aussie luck M8 !!

i live here for 14 years and have experience  for 40 years. b4 you establish talk to all or ask for some others opinion. join our expat club!!

Hello there
It was very interesting read this blog, even most of the msg miss the point.

I am from Mexico, but I hold a Canadian resident , I am a fashion designer by the way, I been working in the fashion industry for more than 18 years, from Mexico, USA, Canada and my last stop China , I been working the last 3 years as the creative director for a Chinese clothes brand , this give me the opportunity to travel around Asia , basic I been everywhere and one of my favorite places in the entire world is a heaven called Boracay, this year I will finish my contract here in china and I decide to open my own business and I want to do it in Boracay , I am not really sure if will be a clothes brand , but since I been working like the creative director for several companies , the business also can be an advertisement , photo studio or model agency. Even I dream with just a chilly small bar around the beach  hahaha
I already been in the island for several times and I also hear to many stories about how difficult is open business in the Philippines starting about the you most to have a Filipino partner and that he will own the 60% of the investment even they don't put money own it ,and other people talk about some agencies that make the position of the Filipino some people think is a better option for that.
So I will really appreciate real and helps information about the best way to open the business there and how can I be there to management , with this I mean the visa , and my budget now is around 50,000 US Dollars 

Rewards
Jose Rodriguez

i suggest that the good investment here in my country is property investment, buy a condominium units and resold it or u can let somebody rent it... condominium now adays is in demand for rent for foreign people especially students at universities, the maximum rent for a condominium is 20 thousand a month, depends on the size, locations and furnishing...

when it comes to payment it's very affordable because you just pay the reservation 20,000 and 10%downpayment and the rest you can pay it through in house or bank financing, we offer help on how to apply for bank financing... all the property are payable cash or 5 to 20 years payments.

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Hello
Yes I also hear about buy a condo there but I check the prices are really high for millions of pesos  and just one , for rent just one and living on the rent just to make the payment of the condo I don't really see how this can be good , somebody told me about a big place like hotel with 15 small rooms but the location is not that perfect and they ask for 40,M  pesos and the new condo I saw a company selling  for over 10m to 100M
So how with my 2M pesos can I do this kind of investment. ?
And in my last visit there last month that started the summer and is high season , I saw many places that say vacancy  room and is because the location.  That is why I was thinking in open a hostel for young travelers , because they look. For affordable accommodation there, but still wondering is not the same, use the property for rent that I need a partner for that ?
Thanks for you reply
Jose Rdz

You need a Philippine partner for such.  Who owns the 55%  so I would avoid such. They are talking about changing there laws here. So I would wait.  Also here any business you start if they see you make money at it. In short order 10 more will be in it in the same area.

.........

actually you can rent space here and establish a small or big business here...
but you cant buy a LOT here since your a foreigner..
but you can buy a unit or commercial spaces for your business here..
i have a lot of friends know how to business here like car dealing..

$50,000 U.S you are talking about and want to live off it.   Need more than that to start a business here of any size.   Figure 80,000 a month rent per month and a 6 month contract.  $2,000 a month U.S. Buy the supples. Set up get started and established. In 6 month you turn a small profit or go broke. You are renting and do well and the rent goes up or the owner kicks you out and takes over.    For that amount you could rent a small eatery and hire a chef to cook here and you do the books, buy, and wait tables. If it works then hire more help.

BPO should be only a call center or can be IT also ?

You are not allowed to work here. Or hold a business license here. You can work online. With that kind of money you could start a small business. And manage it. In a rented shop and hire help to do all the work. I can think of 1 cloths line that would sell here. But that small if you were a success the next week 4 others would open across the street in the same line. Hire family and undercut your prices. If that did not do it you would get a labor complaint and go to jail over that. So you need a front person to do so. You can own the sewing machines. rent the building, do the books and pay a wage to a front person for use of there business permit . And shut down fast when he does the back stab as the business grows and move. But not have it in your name. It is not worth the risk here.

What you need to do is come live here, make friends, investigate & research everything for YOURSELF for an absolute minimum of 6 months before you attempt to start any business.

I've done 2 x 6 months trips now, i've learnt a lot, ruled out a hell of lot & I still don't have a business or any property. Overly cautious? Maybe. I still have my capital though - so I can live with that.

VERY WISE MAN!!!!!!!  Keep it that way !!! I came here as a  Billionaire ! Now with the little help from my little friends within 2 years I am now "a millionaire!!!!". One just cant make any money here as its not a manufacturing country in comparison to other South Asian countries. Well ,good luck anyway and I wish I was in your shoes.

HOW VERY WELL EXPLAINED  AND TRUE! TO EVERY WORD !!!!!

Its ironic that your name is KAKAMAKER?  I do that every morning ( making KAKA ) ...go to the toilette)  0r  perhaps you know me being African?
                                            If you really want to be grateful  to others for the rest of your life to have  saved your ARSE and save your hard earnt money, DONT to venture into to business here ??????.................. DONT EVEN THINK ABOUT IT!!!!!
                                       And if you do, make sure you take a tub of Vaseline with you to avoid pain !!!!!!

The only way here to make money is to buy CONDOS !! You can own,rent or sell it at will. But buy it before its complete as the prices go up. It will take at least 2yrs for completion, then further 1-2 yrs to sell it. The profit can be good but you have to pay for this and that and the "killer" CAPITAL GAINS TAX.     ohhhhhhhhhhhhhhhhhhhh AYE AYE!!!  .here you are taxed ( 7 .1/2 %) on the  (GROSS / WHOLE ) selling price even before O/G expenses etc etc  (YOU ARE NOT TAXED  ON THE GAIN/PROFIT AS YOU SHOULD. ) ! God only knows why ITS CALLED  "CAPITAL GAINS TAX " . When they tax your investment /capital too.?
Its more fun in the PHILIPPINES!!!!

I have lived here for 7 yrs now and "if" you wish to know anything  contact me on.... munawar9@msn.com. I will ans all your Qs. without any strings attached. Good luck

I like your fowardness in yr reply and being point blank . By the way what will be my options if I were to start a eatery at food court , I would like to bring in Asian dishes. The formalities in applying a licenses and taxation, will it be tough

hehehh nice comment

but Y so negative about opening business there ?

My research revealed (I was looking at Franchising) that you can't do a business like this or anything classed as 'retail' legally without a Filipino partner unless you have >$2.5m to invest.

As far as condos are concerned, personally I think market is overpriced, if it keeps rising, yes maybe you can make money, but if it take a downturn you're capital will be tied up or you will have to take a loss. Investigate carefully before you invest. Understand the risks. And take everything a Filipino realtor/sales rep says with a pinch of salt - most have them do not know WTF they are talking (especially the young pretty ones) about & just assume all foreigners have money to burn. Just ask them a few basic questions & watch them squirm or just talk utter crap.

My dear friend Expat; Prakash;
                                    I ran an Indian Restaurant here  In San Fernando ( La union ) for 3 years and was very successful and making GOOD money providing authentic dishes. This would be the BEST opportunity to make GOOD money  here  NOW as there is no competition  or opposition and also The USA armed forces are coming back? i was very surprised by the clientele who were 90% well to do Filipinos and not the foreigners .Simply because they had worked abroad and got the taste of Indian cuisine, Unfortunately, I had to close it down due to ill health  ( 73 yrs old) and the partner having an affair with the bar staff.

Kaka maker:
I am ot being -ve at all .merely stating the facts as I have seen and experienced it for the past 8 yrs."IF" you want to be successful, you have to be VERY DIFFERENT so as not to be copied. in San Fernando ( La Union) . The only  money maker would be a good modern night club serving good food. Mainly spicy Indian style food. As Filipino food though is good  but to anyone with the spicy taste is very watery and bland. As the Phills .Govt is inviting the Yanks to come back, it would be a GOLD MINE!!!!  munawa9@msn.com .

of course, you can. you can even enjoy tax exemption under certain conditions.

i found that the solution of putting the business under a philippino is the best solution
my business it's IT software outsourcing (7 employees)

any better solution ?

even with 7 employees only ?
PEZA require big investment

they informed me that it should be 200,000 $ to invest
too much 4 a small business of 7 employees

i just hired a guy in Manila to collect info for me, he is the one who told me this after visiting peza

are u talking about peza license ?

yup i visited peza website and i did not find detailed info so i hired a guy in Manila to collect info for me. i think he is a big mess

my business will be 7 programmers (to start with) and the business will be web software development
can i make it under peza ? or not worth it ?