Forming a Company that then Leases from me..I need to know

Hi...I intend to travel to and live in the Philippines...With some filippino friends I want to form a company for a small business ..They will have 60% and myself 40% as per the law....However the companies success depends on the company being able to lease/hire from myself a vehicle and other extras .....I would own these and hire to the company at a minimal cost ....Now is this within the law of the Philippines as I own 40% of the company......As the  business develops its my intention for the Company to take over ownership of the vehicle from me........I would be very grateful for any comment..
Thankyou
Ron .. New Zealand..

Seems to me that you should lease to it at a higher rate if you intend to actually make any money. Otherwise, a company in which you own a minority in, gets 60% of your vehicle revenue.
I won’t even delve into the 60/40 mess of Corp. ownership. There are many threads telling why one shouldn’t bother but, I digress.

Thanks for your prompt reply....By what I have read ...The only way to have a business interest is a 60/40 ..unless one has $200,000.oo  and thats away above my finances.......I do not mind having 40% if the company is allowed to lease the vehicle etc  from me .....The business plan depends on this ... I require retaining ownership of the vehicle until such time the business is up and running and a success.....Of course I hope I am able to get a long term visa which I am able to have no problem guiding the business in its initial beginnings.......If I cannot ...well I probably would not invest..Thanks Ron

Hi Ron, welcome to the forum and hope you find your answers. Have you looked into the SRIV?

https://philembassy.no/consular-service … -visa-sirv

Or an alternative if you are not married to a Pinay is the SRRV which gives working privileges and costs less.

https://philembassy.no/consular-service … -visa-srrv

Interesting, I have a Kiwi mate called Ron but he lives on the Gold Coast in Oz.

Good luck mate.

Cheers, Steve.

Steve....Yes I would appreciate your help.....on the visa issue.....You see on the leasing Idea I have an idea nobody knows hense I get no reply from the PH Emassy here in Wellington and others I have emailed ...I will wait til I arrive and contact a Lawyer there and discuss it with him......Now regards the Visa ....I feel I need to get the right one...I had an experience in Fiji many years ago that cost me everything and i do not want to go through that again......
My plan is to buy a vehicle and lease it to the small company that would be formed..... ..I think my plan is a winner but I need to go to the Philippines and have a look first ...Its no guarantee I will invest ..I might  just buy a scooter and travel around all the Islands I can or settle down with a lady I know......
However I really am concerned about a visa especially after being told some horrific stories when I went to buy my airline ticket???

Yes the Sirv/Srrv  ...I have read the one...
If you are over the age of 35, you can deposit $20,000 in a Filipino bank account. The caveat is this money will be held until you leave the country and you cannot use it for any form investment or living expenses.
If you are between the ages of 35 and 49, you can deposit $50,000 into a Filipino bank account, which can then be converted in an investment of $50,000 or higher in the country. Many expats choose to invest in a business which can solve the problem of any income issues and visa requirements at the same time. Others just prefer to purchase a home, which also qualifies as an investment.
If you are 50 years old or above, you only need deposit $20,000 or, if you have a monthly pension of at least $800, a $10,000 deposit will suffice. This money can be used for living expenses or investments as well.

The later  above looks like it would suit me....I am over 50 years old ... I have a monthly pension of at least $800...I could deposit $10,000.00 which I have found out goes in a bank so its  apparantly a refundable deposit ...I struggle to understand what its for unless its a good behaviour bond........And then it says this money can be used for living expenses or investments as well...Again that sounds OK......
I want to have a visa that would allow me to give advice to the small company (with my 40%) and I would do the books ,checking the returns nightly against recorded files and banking the returns ,paying employee wages.....just to ensure everything is ok until everything hopefully grows and is put in the hands of an accountant ....

Do you think the above Visa would be the one to apply for ....... I look forward to your reply.... Thanks Ron

Lots of research Ron is all I would suggest as we all do. Google will be your best friend.

Good luck.

Cheers, Steve.

Buying a scooter and island hopping sounds like a better bet. Haha

Are you aware that you can stay here on a tourist visa for up to 36 months at a time?
You can then leave the country on a cheap flight elsewhere, turn around and come back and start a new 36 month period.

You can do that for many, many years before you even come close to spending that 10-20K deposit that you would have to put up for an SRRV.

Personally, I would do that for a while and give yourself time to acclimated, learn the ropes here and decide if you truly want to remain here long term. You can always drop that 10-20K any time you’re ready if you decide the SRRV is the right option for you.

Tim...When I went to buy my air tickets the lady Travel consultant started telling me about what has happened to some of her clients in the Philippines .... She really new very little about the visa requirements ...It seemed to me that The Philippines really were of little interest to her....now I have been in a country many years ago and I know all about what happens when Immigration or just one immigration official turns bad and your suddenly given 24 hours to leave after having invested everything you had in the country...........I had to get special permission to return to try and sell what I owned but it never worked ..people had hidden my property ??? they new I only had 7 days and just waited me out...
So having read the SRRV  documentation I believe its what I should apply for ..I qualify for it and It gives me security plus I have now learnt that the US$10,000.oo is deposited into a bank of my choice and most importantly it can be used for living costs and for investing........This to me is no different than putting US$10,000.oo in a personal bank account and using it for living costs and anything else while in the Philippines.......Why get a tourist visa...I see no sense in that unless there is something I do not know...Once I arrive in Manila or Mactan I will be seeking out a legal opinion on what I hope I might be able to do ..It may well be I give up on a small business idea and buy  a scooter and just travel??  I do have a very smart Filipina lady to go into business with... If I see an opportunity  .....
Its quite likely that my life will end in the Philippines and everything will be done for this eventuality ..I have no family here in NZ and I have done a lot of thinking about what I regard as my final adventure in life....  Please feel free to offer any comment ...regards Ron...

murihikukid :

Tim...When I went to buy my air tickets the lady Travel consultant started telling me about what has happened to some of her clients in the Philippines .... She really new very little about the visa requirements ...It seemed to me that The Philippines really were of little interest to her....now I have been in a country many years ago and I know all about what happens when Immigration or just one immigration official turns bad and your suddenly given 24 hours to leave after having invested everything you had in the country...........I had to get special permission to return to try and sell what I owned but it never worked ..people had hidden my property ??? they new I only had 7 days and just waited me out...
So having read the SRRV  documentation I believe its what I should apply for ..I qualify for it and It gives me security plus I have now learnt that the US$10,000.oo is deposited into a bank of my choice and most importantly it can be used for living costs and for investing........This to me is no different than putting US$10,000.oo in a personal bank account and using it for living costs and anything else while in the Philippines.......Why get a tourist visa...I see no sense in that unless there is something I do not know...Once I arrive in Manila or Mactan I will be seeking out a legal opinion on what I hope I might be able to do ..It may well be I give up on a small business idea and buy  a scooter and just travel??  I do have a very smart Filipina lady to go into business with... If I see an opportunity  .....
Its quite likely that my life will end in the Philippines and everything will be done for this eventuality ..I have no family here in NZ and I have done a lot of thinking about what I regard as my final adventure in life....  Please feel free to offer any comment ...regards Ron...

Not quite 100% accurate. 

You deposit the money in a bank of your choice from a list that the PRA supplies.  There are about a half dozen banks listed at best.  It CAN NOT be used for living costs/expenses.  It CAN be used for investment purposes though like for the purchase of an authorized condo or for a long term lease.  There is specific language that must be used in any condo or land titling.  One positive thing about the SRRV Visa is that it gives you the authority to work without needing a work visa, something you can not do on a Tourist Visa.

No matter what type of visa you are on you are subject to the whims of the BI in any country.  All expats should tread lightly and respect any and all government employees.

With a SRRV Visa I personally don't see a problem with your plan.  You can purchase a vehicle no problem as long as you use cash, they don't need to see your passport for purchase, just a valid ID from anywhere.  If you use financing any bank can put constraints on the purchase.  Doing a lease to a company should also be no problem, just be sure the lease agreement is drawn up by a Filipino lawyer you trust.

Good luck.

I agree Hobbit, the one thing I did look into and find out was this: "according to a PRA rep I chatted with"

I wanted to put US 20k in on the SRRV classic, I asked if I can convert this money to my lease that I hold, 25 + 25. No, apparently you need to have a minimum of US 50k to convert into an investment, that's fine I said as eventually I will get my money back. Then the fun starts.
The title that is in my partners name has to be changed to reflect that the PRA hold a caveat so if ever sold and I want to stay on the SRRV then I need to put the 50k back in one of their banks, same for the lease, the documents need to be rewritten likewise in case I sell the lease.

Like most things here very little is straight forward or simple and as we do need to come to terms with the way things are done.

Cheers, Steve.

hi Hobbit112....Thankyou for your comment ...Its very much appreciated...Yes I have now come across a website that verifies what you say  IE   It CAN NOT be used for living costs/expenses. ... Which is a concern to me ...I am seriously thinking of getting a Lawyer here to advise/fill in both Documents for me ...the SRRV and the DFA 11 form....If they are able too? Regards Ron

Hi my quotes are copy/pasted so how come i have one that definately states.... If you are 50 years old or above, you only need deposit $20,000 or, if you have a monthly pension of at least $800, a $10,000 deposit will suffice. This money can be used for living expenses or investments as well.....I copy pasted it ..I will try and retrace my history and find which website it was....
And thanks so much for the help...I feel at long last I am making progress....Cheers Ron

murihikukid :

Hi my quotes are copy/pasted so how come i have one that definately states.... If you are 50 years old or above, you only need deposit $20,000 or, if you have a monthly pension of at least $800, a $10,000 deposit will suffice. This money can be used for living expenses or investments as well.....I copy pasted it ..I will try and retrace my history and find which website it was....
And thanks so much for the help...I feel at long last I am making progress....Cheers Ron

If you're interested in conversing with an experienced and helpful PRA  (SRRV) authorized rep (no fixers). Just PM me and i will send her contact information to you.

Regards.

TeeJay....Thanks for that offer ...That would really help me ....Because I am sure the forms that need to be filled in could prove to be very daunting... even for a lawyer ........ Cheers Ron.

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