how to start a business in the philippines essay

Table of contents

Sun, sand, and startups: your guide to starting a business in the philippines.

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Starting a business in the Philippines can be as exciting as a day at the beach, where sun, sand, and startups meet to create a vibrant entrepreneurial landscape. This tropical paradise offers not only natural beauty but also a cost-friendly labor market abundant in skilled and qualified professionals. With access to a larger global market and excellent connectivity with neighboring nations, the Philippines is an enticing destination for budding entrepreneurs. 

Before you can get started, there are some essential steps and strategies you’ll need to know, such as navigating the local regulations to finding the right location and financing options. Read on to learn how to start a business in the Philippines.

Can Foreigners Start a Business in the Philippines?

Yes, foreigners can start a business in the Philippines, and the country welcomes foreign investors and entrepreneurs. However, there are certain restrictions and guidelines to follow that have been discussed below:

Business Ownership: Foreigners can own up to 100% of certain types of businesses in the Philippines. These are typically export-oriented or those involving advanced technology and high capitalization. However, some industries may require a Filipino partner or limited equity participation by foreigners.

Investment Options: To start a business, foreign investors can choose between different business structures, including sole proprietorships, partnerships, corporations, or branches of existing foreign corporations. Each has its requirements and implications for ownership and liability.

Registration and Permits: Registering a business in the Philippines involves several steps. You’ll need to register your business name, obtain necessary permits from local government units, and secure licenses from relevant government agencies. The Philippines’ Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC) are crucial authorities for business registration.

Employment of Foreigners: If you plan to hire foreign employees, you’ll need to secure the appropriate work permits and visas for them.

Why Should You Consider Starting a Business in the Philippines?

If you’re seriously contemplating starting a business in the Philippines there are some major advantages. But there are also some disadvantages you’ll want to know about before making a decision. 

Cost-Friendly Labor Market: The Philippines offers a skilled and educated workforce at competitive labor costs. This can be a significant advantage for businesses looking to cut operational expenses.

Access to a Larger Global Market: With its strategic location in Southeast Asia, the Philippines provides easy access to a vast regional and global market. It’s a gateway for businesses looking to expand into Asia.

Strong Economic Growth: The Philippine economy has been steadily growing, offering a stable environment for businesses. The government actively promotes foreign investments through incentives and support programs.

Cultural Compatibility: English is widely spoken and is the second official language of the country. This linguistic compatibility makes communication with the local workforce easier for foreign businesses.

Disadvantages

Bureaucracy and Red Tape: Dealing with government regulations and bureaucratic processes can sometimes be time-consuming and complex, especially for newcomers.

Infrastructure Challenges: While major cities like Manila offer good infrastructure, rural areas may have limited access to reliable utilities and transportation.

Competition: Depending on your industry, you may face stiff competition from both local and international businesses.

Cultural Differences: Understanding and adapting to the local culture and business etiquette can be challenging for foreigners.

11 Steps to Start a Business in the Philippines

There are a few steps that you need to follow to start a business in the Philippines. Each of these stages plays a critical role in setting up your business for success:

1. Research and Planning

The first step in starting any successful business venture is to do your homework. Begin by identifying your business idea or concept. What product or service will you offer? Next, conduct thorough market research specific to the Philippines. This research will help you assess the demand and viability of your business in the local market. Understanding your potential customers and competitors is crucial at this stage.

2. Develop a Business Plan 

Once you have a clear vision of your business, it’s time to put it all down in a comprehensive business plan. This plan should be detailed and cover various aspects of your business, including your target market, competition analysis, marketing strategies, financial projections, and operational plan. A well-structured business plan not only serves as a roadmap for your business but also helps in securing financing if needed.

3. Pick the Right Location

Location matters in business, and finding the right one is essential. Before deciding on a location, you’ll need to take into account factors like proximity, visibility, and accessibility to your target audience. You’ll need to find a suitable location for your business operations and make sure to secure any necessary leasing agreements or permits required by local authorities. This step ensures that your business has a physical presence in a strategic place.

4. Secure Funding

To make your business dreams a reality, you’ll need to find the cash to make it happen. You can either dip into your personal savings if you’ve got enough stashed away, or you could explore loans, grants, or even investors to fund your venture. Each of these options has its pros and cons, so it’s you’ll want to carefully consider which one suits your business needs and financial targets.

5. Register Your Business

Registering your business is a vital legal requirement that solidifies your venture’s legitimacy. Depending on your chosen business structure , there are specific registration processes in the Philippines. Let’s explore these options:

Sole Proprietorship

A sole proprietorship is the simplest form of business structure in the Philippines. In this setup, you are the sole owner and responsible for all business decisions. Registering a sole proprietorship involves securing a Department of Trade and Industry (DTI) certificate, which legally allows you to operate your business under your chosen business name.

Partnership

If you’re teaming up with others to run your business, a partnership structure might be the way to go. Partnerships can either be general or limited, each with its own set of rules and responsibilities. Registering a partnership requires drafting a notarized partnership agreement and securing necessary permits from local government units.

Corporation

For a more complex and scalable business, forming a corporation might be the right choice. A corporation is a separate legal entity from its owners, offering benefits like limited liability. Registering a corporation involves filing articles of incorporation with the Securities and Exchange Commission (SEC) and complying with various regulatory requirements.

6. Obtain Necessary Permits and Licenses

To operate legally, your business will require permits and licenses. These are typically obtained from local government units (LGUs) and may include Barangay (village) clearance, depending on your business type. Various regulatory bodies may also be involved, depending on the nature of your business. Ensuring that you have all the necessary permits and licenses is crucial to avoid any legal complications down the road.

7. Tax Registration

Ensuring tax compliance is a fundamental responsibility of any business, regardless of its size or industry. Navigating the intricacies of the Indian tax system , which is both complex and subject to frequent changes, requires staying informed about the latest regulations. Here, we highlight some of the essential taxes that businesses in the Phillippines should know about:

Value Added Tax (VAT): VAT is a consumption tax that applies to most goods and services sold in India. The applicable VAT rate varies depending on the specific type of goods or services being sold.

Income Tax: Income tax is levied on the profits earned by both businesses and individuals. The rate of income tax is determined by the amount of income generated.

Employee Withholding Taxes: Employers have a responsibility to withhold taxes from their employees’ salaries. The amount of tax to be withheld is contingent upon the employee’s income level and filing status.

Goods and Services Tax (GST): GST is a relatively new tax system that has replaced VAT and other indirect taxes in India. It operates on a destination-based principle, which means that the tax is paid in the location where the goods or services are consumed.

8. Open a Bank Account

It’s a wise move to establish a dedicated business bank account . This ensures that your personal and business finances remain separate, simplifying financial management. Having a distinct business account also enhances your business’s professionalism and streamlines financial record-keeping.

9. Set Up Your Office

Creating a functional workspace is vital for your business’s daily operations. This involves acquiring the necessary equipment, facilities, and utilities to support your work. Whether it’s a physical office or a home-based setup, you’ll want a workspace conducive to productivity.

10. Hire Your Staff

Depending on the size and nature of your business, you may need to hire employees. It’s essential to understand the labor laws of the Philippines to ensure compliance. This includes providing mandatory benefits and registering employees with the Social Security System (SSS), PhilHealth, and Pag-IBIG. Complying with labor regulations ensures the well-being of your employees and keeps your business on the right side of the law.

11. Promote Your Business

Promoting your business effectively is crucial to getting the word out about your products and services. But how do you go about it? Fortunately, there are various avenues to explore. Alongside traditional marketing methods, the emergence of social media has opened up a wealth of new opportunities for building brand awareness.

Your Path to Success 

As you begin this journey with the allure of the Philippines’ beauty, remember that building a successful business here takes planning, following the rules, and managing money well. 

Now, if you’re looking for expert assistance to streamline your business formation, compliance, and bookkeeping needs, consider doola . With doola’s specialized services, you can simplify your journey as we offer comprehensive support for business formation, helping you secure permits and licenses hassle-free. 

Moreover, our expertise in tax compliance ensures you meet all tax obligations, keeping your business on the right side of the law. And when it comes to bookkeeping, doola’s professionals can help you maintain accurate financial records, ensuring the financial health of your business.

Do I need to have a physical office in the Philippines to start a business?

While a physical office isn’t mandatory, you must have a registered business address in the Philippines for legal purposes.

What are the tax obligations for businesses in the Philippines?

Tax obligations include Value Added Tax (VAT), income tax, and other taxes depending on your business type. Complying with them will keep you legally safe.

Do I need to hire local employees when starting a business in the Philippines?

Hiring local employees may be required depending on your business type or size. Compliance with labor laws and benefits is necessary if you hire locally.

How can I protect my intellectual property rights in the Philippines?

To protect intellectual property, register your trademarks, patents, and copyrights with the Intellectual Property Office of the Philippines (IPOPHL).

What are the typical challenges faced by new businesses in the Philippines?

Challenges include navigating bureaucracy and competition, finding the right location, and understanding local market dynamics. Thorough research and planning are key to overcoming these hurdles.

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Guide to Starting a Business in the Philippines

Learn the essentials of starting a business in the Philippines from business structure to key requirements and step by step process

Meet our consultants

Are you planning on starting your business in the Philippines? The country has one of the fastest-growing economies in Southeast Asia and the GDP is expected to grow by another 6% in 2024.

In this article, we will take a look at the essentials of starting a business in the Philippines including the types of business entities, requirements, and process of registering your business.

An Overview of Common Business Structures in the Philippines

Domestic corporation.

The Domestic Corporation is the most common legal entity for businesses in the Philippines. It is similar to LLC or a private limited company as it is a separate legal entity where the owner’s liability is limited to the amount of share capital.

A domestic corporation can have up to 15 shareholders including foreigners. However, only the corporations with up to 40% foreign ownership are considered Filipino corporations. Companies where foreigners own more than 40% shares are known as Foreign-owned corporations.

One Person Corporation (OPC)

The One Person Corporation (OPC) is similar to a domestic corporation in the philippines except the fact that an OPC has only one shareholder that can only be a natural person, a trust, or an estate..

An OPC has lower capital requirements than a corporation and allows 100% foreign ownership. However, it is subject to extensive compliance requirements.

Sole Proprietorship

A Sole Proprietorship has only one owner. The owner has full control over the business and owns all assets and profits. Unlike a corporation or an OPC, the sole proprietor is personally liable for any debts and losses incurred by the business.

Read our article on types of business entities in the Philippines for more details on legal business entities and their characteristics in the Philippines.

An Overview of Corporate Structures for Corporations in the Philippines

The corporate structure of both domestic and one person corporations has the following: 

• Shareholders
• Corporate officers

Note that this does not apply to sole proprietorships.

No. of Shareholders in a Corporation in the Philippines

As mentioned above, the biggest difference between the two kinds of corporations is the number of shareholders. However, there is also a difference in who can become a shareholder.

Requirements for Directors in a Corporation in the Philippines

The corporation’s shareholders elect the board of directors. Directors must also meet the following requirements:

• Must be a natural person and of legal age
• Must hold at least one share
• Must not have been convicted of a crime punishable by imprisonment for longer than six years
• Must not have violated the Corporation Code within five years before the date of election

Since directors must hold shares, a domestic corporation can have no more than 15 shareholders. Meanwhile, in an OPC, the sole shareholder is also the director.

Corporate Officers in a Corporation in the Philippines

The board of directors assigns the corporate officers. All corporations in the Philippines must have the following corporate officers:

• President. The president acts as the signatory on behalf of the corporation. He or she must be a shareholder and a director. As such, the sole shareholder of an OPC is also the president.
• Treasurer. The treasure is in charge of all financial matters in the corporation. The president of an OPC may also hold this position. However, in such cases, the OPC president/treasurer must pay a surety bond. The amount depends on the company’s authorized capital stock.
• Corporate Secretary. The corporate secretary handles all of the corporation’s administrative and informative work. Many corporate secretarial tasks involve maintaining compliance with laws. As such, your corporate secretary must have in-depth knowledge of laws and regulations regarding corporations.

Emerhub provides your business with a corporate secretary in Philippines who is well versed with the local regulations and helps your company stay compliant. Fill out the form below to discuss your needs with our business advisors.

Minimum Capital Requirements When Starting a Business in the Philippines

The minimum capital requirement for registering a corporation in the Philippines with at least 60% Filipino ownership is Php. 5,000.

How to Start a Business in the Philippines

To start a business in the philippines, you need to register you corporation with the SEC, obtain necessary permits from the local government including the Mayor’s permit and the Barangay Permit, register with BIR for taxation, and register as an employer with SSS, PhilHealth, and HDMF.

Here is a detailed overview of the process of starting a business in the Philippines:

1. Reserve the Business Name

To start the business operations in the Philippines, companies must reserve their business name with the Securities and Exchange Commission (SEC). The business name must be unique and comply with the business naming regulations in the Philippines.

2. Register Your Corporation with the Securities and Exchange Commission (SEC)

Once the business name is reserved, the next step is to register the corporation with the Securities and Exchange Commission.

Following are the required documents to register a company in the Philippines with SEC:

• Business name reservation form along with the payment proof
• Articles of Incorporation and company bylaws
• Treasurer’s Affidavit as a proof for minimum capital payment
• Other relevant documents such as SEC Form F-100 for foreign-owned corporations

Emerhub’s experienced business advisors draft the articles of incorporation and bylaws and obtain the certificate of registration from the SEC on your behalf.

If you plan to register a sole proprietorship, the business registration should be completed with the Department of Trade and Industry (DTI). Our consultants can complete the DTI registration on your behalf in as little as one day.

3. Obtain the Business Permit

After the SEC registration, All businesses must obtain the additional business permits from the relevant local government unit (LGU) and Barangay. These permits include the following:

• Barangay Permit
• Business Permit from the Mayor’s office aka the Mayor’s Permit

These permits help to ensure that your business complies with the local laws and is allowed to operate in the area.

As such, you must have a valid address for your company. Note that there are zoning restrictions on addresses you can use for your business. Our consultants can assist in finding a valid address and secure the necessary permits on your behalf.

If your business can operate without a physical office, you can also use a virtual office address. This is a cost-effective way to get a valid business address. You can use Emerhub’s virtual office address in the Makati central business district.

4. Obtain the Bureau of Internal Revenue (BIR) Registration Certificate for Taxation

To comply with country’s tax laws, businesses in the Philippines are required to register with the Bureau of Internal Revenue (BIR) and obtain the BIR registration Certificate. Keep in mind that you cannot conduct business operations if you are not registered with the BIR.

5. Register as an Employer with SSS, PhilHealth, and Pag-IBIG

Before you can hire employees for your business, you must register your company as an employer with the following government agencies in the Philippines:

• Social Security System (SSS)
• Philippine Health Insurance Corporation (PhilHealth)
• Home Development Mutual Fund (HDMF/Pag-IBIG)

Registration with the above will allow you to make mandatory employer contributions and stay compliant with the employment regulations. Emerhub will take care of employer registration with the SSS, PhilHealth, and Pag-IBIG within 2 working days.

Ready to start your business in the Philippines? Fill out the form below and we will put you in touch with one of our business advisors in the Philippines.

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How to Start a Business in the Philippines

By  Yesh Quijano     August 8, 2023       min read

Table of Contents

Key Takeaways:

• Business Idea: A successful business begins with an idea that matches your skills and market needs.
• Market Research: Understand your competition and potential customers through thorough research.
• Business Structure: Choose the appropriate structure (sole proprietorship, partnership, or corporation) based on your business goals.
• Business Plan: A clear and well-crafted plan is crucial for your business’s direction and attracting potential investors.
• Raising Capital: Explore various funding sources, including grants, loans, crowdfunding, and personal savings.
• Legal Registrations: Registering your business with the appropriate government agencies is essential for legality and smooth operations.
• Technology Use: Employ POS systems and accounting software to streamline business operations and enhance financial tracking.

Does owning a successful business in the Philippines and calling yourself a business owner make your heart beat faster?

Starting a business can be filled with opportunities and challenges, especially in a vibrant economy like the Philippines, a country with an entrepreneurial spirit.

If you’re considering how to start a business in the Philippines, you’re joining the ranks of an estimated 1 million entrepreneurs who launch their ventures here each year.

But where do you start?

From crafting a compelling business idea to navigating the maze of business registration, this guide will take you through each step to transform your entrepreneurial dream into a thriving reality.

Let’s dive in.

Step 1: Come up with a business idea

The spark of entrepreneurship starts with a great idea. But how do you know if your idea has the power to create a successful business in the busy Philippine market?

At Trailblazer, we believe that the  key to a successful business is its ability to solve problems, meet needs, and add value for its customers. To help you find a suitable business idea, ask yourself these critical questions:

• What are my interests or hobbies that I could turn into a business?
• What unique skills or expertise could I capitalize on?
• Is there a hole in the market that my company could fill?
• Who would benefit from what I have to offer?
• What would make my business stand out from the crowd or give it something extra?

There are many business opportunities in the Philippines for people who want to make their mark. To give you an idea, below are the top 5 most popular businesses in the Philippines according to MSMEs (Micro, small and medium enterprises):

• Wholesale and retail trade ; repair of motor vehicles and motorcycles
• Accommodation and food service industry
• Manufacturing
• Other service activities
• Financial and insurance activities

You can also check out DTI’s list of business ideas here.

Remember, each industry has its opportunities and challenges, so it’s essential to base your business idea on a field you’re interested in and know much about.

Step 2: Research the market

Once you have a good idea for a business, the next important step is to research the market. This process will give you a deeper understanding of your potential customers, competitors, and overall industry dynamics. Here are some essential questions to guide your market research:

• Who are my target customers? What are their demographics, needs, and buying behaviors?
• Who are my competitors? What are they doing well, and where are their weaknesses?
• What is the size of my market? Is it growing or shrinking?
• What trends are shaping my industry? How might they impact my business?
• How does my business differentiate itself from the competition?
• What are the potential opportunities and threats in my market?
• What are the pricing models in my industry? Where does my product or service fit in?

Effective market research can distinguish between a business that does well and one that needs help getting off the ground. It gives you essential information to help you make intelligent decisions, shape your marketing plans, and set up your business for success in the busy Philippine market.

Step 3: Decide on the business structure

Your choice of business structure will affect your business in many ways, including taxes, legal liability, day-to-day operations, and the chance it will grow. There are three main ways to set up a business in the Philippines:

• Sole proprietorship. This is the simplest form of business entity, where one person owns and manages the business. It’s the easiest and least expensive to set up, but the owner is personally liable for all debts and obligations of the company.
• Partnership . This involves two or more people agreeing to share a business’s profits and losses. A partnership can be a general partnership, where all partners share equally in rights and liabilities, or a limited partnership, where one or more partners have limited liability but cannot participate in management decisions.
• Corporation . This legal entity is separate from its owners, providing them limited liability. It requires more paperwork and is more expensive to set up than a sole proprietorship or partnership. However, it’s often preferred for larger businesses or those seeking outside investment due to its structure and legal protection.

When choosing a business structure, you should consider your business objectives, how you feel about taking risks, how much money you need, and how you like running your business. It would be best to talk to a business advisor or an attorney to determine each choice’s legal and financial effects. Remember that having the proper structure can give your business in the Philippines a strong base.

Step 4: Business Planning

What is a business plan?

A business plan is a formal written document that meticulously outlines your business goals and how you intend to achieve them. It serves as a roadmap guiding your business toward growth and success. It details what you want to do and explains how you plan to do it, making it an indispensable tool in your entrepreneurial toolkit.

Why do you need a business proposal?

A business blueprint isn’t merely a document; it’s the compass that guides your business journey. Here are a few compelling reasons why you need one:

• Clarity: It helps crystalize your business idea, giving you a clear vision of what you want to achieve and how you intend to do it.
• Strategy: It’s where you establish your business strategies and action plans. From marketing to operations, it’s the document where you detail the tactics to drive your business toward its goals.
• Financing: A well-crafted business plan is crucial for entrepreneurs seeking external funding. It demonstrates to potential investors or financial institutions that you’ve thought things through and have a viable business proposition.
• Benchmarking: It serves as a baseline for tracking your progress and making necessary adjustments as your business evolves.
• Communication: It’s an effective tool to communicate your business vision, mission, and strategies to your team, ensuring everyone is aligned and working towards the same objectives.

What to avoid in your business plan

As important as a business plan is, it’s just as important to know what to avoid when writing it. Here are a few mistakes that people often make:

• Overly optimistic projections: It’s great to be hopeful, but unrealistic sales and revenue forecasts can harm your credibility. Always base your predictions on reliable data and plausible assumptions.
• Ignoring the Competition: No business operates in a vacuum. Ensure you’ve thoroughly analyzed your competitors, understanding their strengths and weaknesses.
• Lack of Clarity: A business strategic plan is not the place for jargon or ambiguity. Keep your language straightforward and your objectives clear.
• No Marketing Plan: A great product or service is part of the story. Ensure you have a robust marketing strategy to reach your target audience.
• Skipping the Executive Summary: The first section potential investors will read is a business synopsis. Skipping or not giving it due importance could make or break their interest.

Business plan format

The format can vary, but here’s a typical outline:

• Executive Summary
• Company Description
• Market Analysis
• Organization and Management
• Service or Product Line
• Marketing and Sales Strategy
• Funding Request (if applicable)
• Financial Projections

We encourage you to review the Department of Trade and Industry business format for further guidance.

6 steps to a great business plan:

To create a great business operational plan, follow these six steps:

• Begin with a clear, concise executive summary that gives an overview of your business.
• Provide a thorough company description that explains what your business does, who it serves, and what differentiates it.
• Conduct a comprehensive market analysis that shows your understanding of your industry, competition, and target audience.
• Detail your business structure, management team, and key personnel.
• Explain your product or service, its benefits, and how it meets the needs of your target market.
• Outline your marketing and sales strategy, demonstrating how to attract and retain customers.

A well-crafted business model doesn’t just guide you as you build your business; it also helps stakeholders, including potential investors, understand your vision and the market potential of your venture in the Philippines.

Step 5: Raise your capital

To bring your business idea to life, you’ll need capital. Your business plan should help you figure out how much money you’ll need to start and run your business until it turns a profit. Here are some places you could get money:

• Small business grants. Small business grants are funds given to a business that doesn’t have to be paid back. Some government agencies and private organizations in the Philippines offer grants to help micro businesses, especially those in specific industries or regions.
• Small business loans. These are loans specifically designed for small businesses. Banks, microfinance institutions, and government agencies like the Development Bank of the Philippines (DBP) offer loans with terms favorable to startups.
• Personal Loans . These are loans that individuals obtain for personal use but can also be used to finance a business. They can be accessed from banks and other financial institutions, though interest rates may be higher than for small business loans.
• Crowdfunding. This involves raising small amounts of money from many people, typically via the Internet. Platforms like Kickstarter or local sites like The Spark Project allow you to pitch your business idea to potential backers.
• Friends and Family. Often, friends and family are willing to invest in your business by giving you a loan or buying a share.

Remember that each way to get money has its advantages and risks. Before choosing the best funding source for your business, it’s essential to carefully think about what you need, how much it will cost, and how easily you can pay it back. Starting a business in the Philippines, like anywhere else, requires money. Make sure to plan and raise yours wisely.

Step 6: Choose a strategic business location

Location can make or break a business. The right place can give your business the exposure it needs, bring in the customers you want, and affect your operating costs. When starting a business in the Philippines, thinking carefully about a strategic location is essential.

Think about what your business is about. For example, a retail store would benefit from high foot traffic, while a manufacturing business may need ample space for equipment and easy access to transport links.

Here are some factors to keep in mind:

Demographics

Ensure your location aligns with the demographics of your target market. The area’s population size, income level, and lifestyle habits can significantly affect your business’s success.

Accessibility

How easy is it for customers and employees to reach your business? Look at the transport links, parking availability, and overall convenience.

Competition

Are there similar businesses nearby? Sometimes being close to competitors can be beneficial, but other times it can lead to market saturation.

Can your business afford the rent or purchase price, utilities, taxes, and other expenses associated with the location?

Local Laws and Regulations

Different areas may have specific zoning laws and business regulations. Make sure your business activities are allowed in the chosen location.

Growth Potential

Does the location offer room for business growth?

Remember that a good location can give your business an edge. Take your time researching, look at more than one site, and ask a professional for help if needed. Choose carefully because your location is more than just an address—it’s where your business objectives come to life.

Step 7: Business registrations and permits

Once you’ve secured your capital and chosen your location, it’s time to legitimize your business. This involves applying for the necessary permits and licenses to operate legally in the Philippines.

Apply For Business Permits and Licenses

Businesses require different permits, but all companies need a mayor’s or business permit from their local city or municipality.

• Department of Trade and Industry (DTI): Acquiring exclusive rights to your business name necessitates registration with the appropriate agency. This step is mandatory for sole proprietors. You can complete your registration at any Department of Trade and Industry (DTI) Regional or Provincial office. A directory of these offices is available on the Contact Us page. Alternatively, you can register online at www.bnrs.dti.gov.ph . For those outside Metro Manila, applications for Business names can be filed at the nearest DTI regional or provincial offices. The provided link can access the Sole Proprietorship Business Name registration application form. Download, fill out the form, and present it to your local DTI office for walk-in applications.
• Securities and Exchange Commission (SEC): For a Partnership or Corporation to be recognized as a legal or judicial entity, it’s critical to register with the Securities and Exchange Commission (SEC). Register at: Head Office: Secretariat Building, PICC Complex, Roxas Boulevard, Pasay City, 1307 Trunkline No.: (+632) 8818-0921 Email: [email protected] Website: www.sec.gov.ph  (for online registration)
• Cooperative Development Authority (CDA): All cooperatives must register with the CDA per Republic Act 6938/6939. You may register at: Cooperative Development Authority (CDA) 6/F Benlor Building, 1184 Quezon Avenue, Quezon City Tel. No.: (+632) 373.6895 Website:  www.cda.gov.ph
• Local Government: Besides the Mayor’s Permit, your local government unit may require you to obtain a Barangay Clearance from your local barangay office. This confirms that you’ve asked permission to operate your business in the community. The process of registration can differ across various cities and municipalities. To access a comprehensive list of Local Government Units (LGUs), kindly refer to the Department of Interior and Local Government website or visit http://lgu201.dilg.gov.ph/ .

Register with the Bureau of Internal Revenue (BIR)

All businesses must register with the BIR to obtain a Tax Identification Number (TIN), register their books of accounts, secure BIR-printed invoices and receipts, and know their tax type and due dates.

Register with the Social Security System (SSS), PhilHealth, and Pag-IBIG Fund

Once you hire employees, you must register your business with the Social Security System, the Philippine Health Insurance Corporation (PhilHealth) , and the Home Development Mutual Fund (Pag-IBIG Fund) .

These provide your employees with benefits, healthcare, and housing loan programs.

Register with the Department of Labor and Employment (DOLE)

You must register your business with DOLE if you employ five or more workers. This ensures you comply with the country’s labor laws and standards.

Step 8: Open a business bank account

Having a separate bank account for your owned business is not just a good idea—it’s a must. It keeps your business transactions different from your own. This makes it easier to do your taxes and gives you a clearer picture of your business’s financial health.

Here’s how you can open a bank account for your business in the Philippines:

How to Choose the Right Bank

Consider the bank’s reputation, where its branches are, fees, minimum balance requirements, and services like online banking and credit card processing.

Here are some additional tips for choosing a bank for your business:

• Get quotes from multiple banks. This will help you compare rates and fees and find the best deal for your business.
• Consider the bank’s reputation. Read online reviews and talk to other business owners who bank with the bank you are considering.
• Make sure the bank has the products and services you need. Not all banks offer the same products and services. Ensure your chosen bank has the right products and services for your business.
• Talk to a banker. A banker can help you understand the bank’s products and services and answer any questions.

Prepare the Required Documents

The requirements may be different from bank to bank, but your business permit, SEC or DTI registration , barangay clearance, and TIN are likely to be needed by most banks. If you’re a business, you may also need your articles of incorporation and a board resolution saying that you want to open a bank account.

Application Process

The next step is to go to the bank in person and complete an application form. Once you’ve picked a bank and completed your paperwork, you can do this. The bank will review your papers and ask you a few questions.

Initial Deposit

You’ll be asked for an initial deposit once accepted. The amount is different at each bank.

Here are some of the best banks in the Philippines for businesses to consider, along with their advantages:

• The largest bank in the Philippines has an extensive network of branches and ATMs, providing convenience and accessibility.
• Offers a wide range of business banking products and services, including loans, deposits, and treasury services.
• They are known for excellent customer service, ensuring a positive banking experience.
• Competitive rates can benefit businesses seeking favorable terms for their financial transactions.
• The second-largest bank in the Philippines, providing stability and reliability.
• Offers innovative products and services, demonstrating a commitment to staying up-to-date with industry trends.
• Strong focus on customer service, aiming to deliver high client satisfaction.
• Third-largest bank in the Philippines, providing a sense of stability and reliability.
• Strong financial performance, indicating a solid track record and financial strength.
• Commitment to corporate social responsibility can appeal to businesses looking to align with socially responsible institutions.
• Leading commercial bank in the Philippines, signifying its prominence and market presence.
• Strong financial performance, indicating stability and sound management.
• Commitment to customer service ensures businesses receive reliable and efficient banking services.
• Government-owned bank with a focus on supporting Philippine businesses and promoting economic development.
• Offers loans and financial services tailored to meet the specific needs of businesses and borrowers.
• Long history of supporting Philippine businesses and providing expertise in the local business landscape.

Below are some of the best digital banking options for businesses in the Philippines , along with their advantages:

• Offers a variety of business banking products and services, including high-interest savings accounts, business credit cards, and business loans.
• Known for its innovative products and services, indicating a focus on providing modern and convenient banking solutions.
• Strong commitment to customer service, ensuring a positive and personalized banking experience for businesses.
• UnionBank Digital
• Offers a range of business banking products and services, including high-interest savings accounts, business credit cards, and business loans.
• Demonstrates a commitment to corporate social responsibility, appealing to businesses that value ethical practices.
• Tonik Digital Bank
• Provides a high-interest savings account with a guaranteed 6% interest rate, offering an attractive opportunity for businesses to earn higher returns on their savings.
• Known for its simple and user-friendly platform, making banking operations convenient and accessible.
• Competitive interest rates are favorable for businesses looking to maximize their savings.
• EastWest Bank SME Digital
• Offers a range of products and services tailored to small and medium-sized businesses, including business checking accounts, business loans, and business credit cards.
• Known for competitive rates, indicating favorable terms for financial transactions.
• A convenient online banking platform provides businesses easy access and efficient banking operations.
• RCBC EasyInvest Provides a digital banking platform for businesses to invest in stocks, bonds, and mutual funds.Known for low fees, offering businesses cost-effective investment opportunities.Easy-to-use platform, enabling businesses to navigate the investment process smoothly.

Remember that a business bank account is more than just a place to store your earnings. It’s a tool that can help you manage your cash flow, make transactions easier, save for the future, and build a financial history for your business in the Philippines. Think of it as an essential part of your business.

Step 9: Set up an accounting system

When running a business, it is essential to have an effective accounting system in place. It helps you keep track of your income and costs, ensure you’re following the law, and make intelligent business decisions. Here’s how to set up your business’s accounting system in the Philippines:

Choose the Right Accounting Method

Decide if you’ll use cash accounting (recording transactions when cash changes hands) or accrual accounting (recording transactions when they occur, regardless of payment). Small businesses often start with cash accounting due to its simplicity.

Choose the Right Accounting Software

To make things easier, use accounting software. The right software for you will depend on your needs, budget, and business size. QuickBooks, Xero, and FreshBooks are all popular choices.

Set Up Your Chart of Accounts

This list of accounts will categorize your transactions. Common accounts include assets, liabilities, equity, income, and expenses.

Document Your Financial Policies

Documenting your financial policies helps ensure consistency and transparency in handling your business’s financial matters.

Maintain Regular Financial Reviews

Review your financial statements regularly to see how your business is doing financially and make intelligent choices.

Remember that setting up an accounting system might seem hard initially, but it’s necessary if you want to manage your business’s finances well. If you need help, consider hiring an accountant or bookkeeper. Your business will be more likely to make money if you work hard at this step.

What is POS?

A POS, or point of sale system, combines software and hardware that allows businesses to complete transactions and simplify critical day-to-day business operations. Essentially, it’s where a customer pays for goods or services at your store.

Here’s how a POS system can help businesses improve their accounting systems:

• Seamless Transactions: A POS system can process payments quickly and accurately, reducing the risk of manual errors that can throw off your books.
• Real-Time Tracking: It provides real-time updates on your sales, inventory, and customer information, ensuring your accounting system always has the most recent and accurate data.
• Inventory Management: A POS system keeps track of your stock levels, automatically updating inventory records in your accounting system. This means you always have a clear picture of what’s selling and what’s not, helping you make smarter inventory decisions.
• Detailed Reports: A POS system can generate detailed sales reports, revealing patterns and trends vital for business planning. These insights can be invaluable for forecasting, budgeting, and other accounting tasks.
• Streamlined Operations: It can integrate with your other business systems, like your accounting software, creating a seamless flow of information across platforms. This integration simplifies your accounting process, making it easier to manage and reducing the chance of errors.

A POS system is more than just a cash register; it’s a powerful tool that can significantly enhance your accounting efficiency by providing a more transparent, real-time overview of your financial status and helping drive your business toward success in the Philippine market.

Step 10: Create a website

In this digital age, your business needs to have a website. It not only makes you more known, but it also gives you an edge over your competitors. Here’s how to make a website for your business in the Philippines:

Choose a Domain Name

Your domain name is how people know who you are online. Ensure it’s short, easy to spell, and fits your business well. Use a domain registrar you can trust to buy the domain you want.

Example of a domain name: trailblazer.com.ph

Choose a Web Host

A web host gives your website the technology to be seen online. Choose a host based on how much storage, speed, and support your business needs.

You may visit this site to learn more about web hosting.

How to Make Your Website

When designing your website, put the user experience first. It should be easy to use, look good, and work well on mobile devices.

Create Essential Pages

Your website should have at least a home page, an “about” page, a page for products or services, and a “contact” page. Include clear calls to action to help people know what to do next.

Optimize for SEO

SEO, short for Search Engine Optimization, is a technique to make your business website easier to find online. It’s like putting a big, bright sign on your store in the digital world. When people search for products or services you offer, SEO helps your website appear closer to the top of their search results on Google or other search engines. This makes it more likely that people will visit your site and potentially become your customers.

You use relevant keywords throughout your website to help rank higher in search engine results. Remember to put your keywords in the titles and descriptions of your meta tags, too.

Test and publish

Before you make your website public, make sure it works on different devices and browsers. When everything is ready, click “Publish.”

Update Regularly

Keep your content fresh and up-to-date by updating it often. Updates not only keep people interested, but they also help your SEO ranking.

Websites are more than just online business cards. It’s a powerful marketing tool that can drive sales, build credibility, and make your brand known digitally. So, make a site that shows what your business is about and helps your customers.

Step 11: Market and promote your business

Once your business is ready, it’s time to make some noise! Effective marketing can boost your visibility, attract potential customers, and grow your business. Here’s how to market and promote your business in the Philippines:

Online Marketing Strategies:

Social media

Use sites like Facebook, Instagram, LinkedIn, and Twitter to connect with customers, share your content, and promote your products or services. Engage with your audience often to build loyalty and relationships.

Email marketing

Have people who visit your website sign up for your email list so you can send them updates, special offers, and other helpful information. It’s a great way to remind them of your business.

Content marketing

Regularly add valuable and relevant content to your blog or YouTube channel. This can boost your SEO ranking, show that you are an expert in your field, and bring more people to your site.

Paid advertising

Pay-per-click advertising on Google AdWords or Facebook Ads to reach potential customers.

You can incorporate these successful and proven online marketing tactics into your business strategy.

Offline Marketing Strategies

Attend industry conferences, trade shows, or local community events to meet people in your field. This can help you make valuable business connections and attract people who might buy from you.

Print Media

If you want to reach more people, you could use brochures, flyers, or ads in local newspapers.

Promotions and Events

To attract new customers, host events, or offer special deals.

Partnerships

Work with businesses similar to yours to help promote each other.

Remember that marketing isn’t about selling. It’s about getting the right message to the right people. Be consistent, develop new ideas, and listen to your customers’ words. Your marketing efforts in the Philippines may take a while to pay off, but if you are patient and keep at it, they can make a big difference in the success of your business there.

Final Thoughts

There you have it – a complete guide on how to start a business in the Philippines.

Starting a business in the Philippines may seem complicated, but it can be an exciting journey with the right plan and attitude.

Remember that every successful business started with an idea that took time to plan and carry out.

Get educated, keep your mind open to learning, and stay strong even when things get complicated.

Your business journey will never be easy, but each obstacle will bring you closer to your goal.

Let’s make that idea for a business happen today. Trust the process, believe in your vision, and your business will grow.

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

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Starting a Business in the Philippines 101: Your First Steps

• July 6, 2017

As you know, the Philippines is becoming one of the  fastest-growing nations in Southeast Asia . There’s no doubt about it — starting a business in the Philippines is probably your success-in-the-making. However, like any other venture in another country, starting a business in Asia’s tiger cub economy can be quite challenging if you don’t know what or how to start. You would need to secure the right business permits and register your business to the right government agency.

First of all, you have to remember these important agencies to help you complete all your legal requirements in starting a business in the Philippines.

• Department of Trade and Industry (DTI)
• Securities and Exchange Commission (SEC)
• Bureau of International Revenue (BIR)

There you would have to register, acquire all the necessary permits, and submit all the requirements needed to put up your business here.

——————————————————————————————————————————–

Related Page:  Outsourcing Support for Your Business

What’s the first step?

Identify whether your business is either a single proprietorship enterprise, a partnership, or a corporation. If you want to register as a single proprietor, you would have to go to DTI. For corporations and partnerships, you can obtain your certificate of registration at the SEC.

What’s next?

Your document requirements will actually depend on the type of business you own, but some of these may include the following:

• Lease contract or property title
• Building and occupancy permits
• Zoning clearance
• Public liability insurance
• Barangay clearance
• Fire safety clearance

And of course…

Related Article:  Starting a Business in the Philippines: Your Employees

Don’t miss the Bureau of Internal Revenue

Regardless of what type of business you are going to establish, going to the BIR is a must for all. Here you would have to obtain your tax identification number (TIN). All your official receipts, invoices, and account books must be registered here. Remember: you would have to register and pay all applicable fees in the specific BIR office that covers your business address.

As mentioned above, other special fees may be required for your specific business needs. Registering to these agencies are essential if you want to proceed with your business venture — hassle-free. If you fail to register or submit to these requirements, your business might be closed, and worse, imprisonment.

For tips and guides for starting a business in the Philippines for foreigners, stay tuned to the EV blogs!

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How to Be Successful in Business in the Philippines

Last Updated – Jan 22, 2024 @ 10:43 am

Starting your own business is a shot in the dark. It will push you out of your comfort zone, and challenge you in ways you never thought were possible. But despite the hardships that come with creating your own business, a lot of Filipinos are still doing it.

In 2020, the Department of Trade and Industries tallied a staggering 839,444 business registrations between January and early November. This signals a 32% jump from 2019 1 .

What’s more surprising is that according to the Philippine Statistics Authority, a whopping 99.51% of the 957, 620 business enterprises in the country are MSMEs. 2  

Unfortunately, all these businesses don’t see the end of the tunnel. Over 70% of businesses in the country closed due to the pandemic, and this number is not unique to the Philippines. 3

In the US, 20% of small businesses fail within their first year. The number climbs to 50% in the fifth year, and after a decade, only a third of these businesses remain operating. 4  

Considering these numbers, the inherent risks that come with starting your own business are truly not for the faint of heart. To help protect your interest, you must know the most common culprits that cause businesses to fail. This way, you can expect and prevent the obstacles that may come in the future. This article will help you increase your chance of achieving entrepreneurial success. 

Common Reasons Why Businesses Fail in the Philippines

A lot of entrepreneurs get uncomfortable when they are forced to talk or learn about failure. However, ignoring the most pressing reasons why businesses fail will only get you in trouble.

Considering the alarming rate of businesses closing in their first decade, you need to study this section well. 

Problems with cash flow

Without cash, it would be impossible for your business to run. All establishments need cash flow so they can float through various sales cycles – high or low.

An empty bank account is one of the major reasons why a lot of great businesses fail because the sad reality is, cash is truly king in the world of business, and not everyone can turn to lenders when cash is strapped.

No market fit or insufficient demand

You can’t possibly create a business without being sure that there is a demand for your product or service. Before launching, make sure you have concrete data on your customer profile and existing competition.

More than that, you also need to have your Unique Selling Proposition or USP. All these are invaluable to help you make better decisions that translate into sales. 

If your business is riding on a trend, always be ready to adapt when the trend naturally fizzles out. 

Run out of capital or funds

This is by far one of the major reasons why a lot of businesses that show potential close in their first few years.

A lot of entrepreneurs underestimate how expensive it is to run a business , especially since you want to meet all internal and external expenses such as rent, staff salary, equipment, and raw materials.

When you don’t have access to capital , whether it’s in the form of debt finance or personal savings , your business will lack the fuel it needs to survive. 

Did not have the right team or employees

You’ll be surprised at how the right people can help your business thrive. When you don’t prioritize your recruitment process, you will end up hiring unreliable staff that will simply drag your business down. 

Keep in mind that all entrepreneurs should be good leaders. They must foster a healthy, happy, and loyal team that is motivated to push the company forward. 

Edged out by the competition

If there is already too much competition in your industry, and you’re late to the game, it’s like putting your one foot in the grave.

Starting your business and cementing your brand reputation is hard enough, but if you have to fight an uphill battle due to intense market saturation, you’ll end up draining your resources. 

Related: Complete Guide to Business Development

9 Steps for Building a Successful Business in the Philippines

Starting your business venture and seeing it grow is one of the most rewarding things in the world. While the process may seem hard and intimidating, it can be boiled down to 9 simple steps. 

1. Define exactly what you want to achieve

When it comes to starting your business venture, you first need to ask yourself what your goals are. Make sure that you are setting SMART goals from the beginning. SMART means:

S pecific M easureable A chievable R esult-Driven T ime-bound

It is important to ask yourself three vital questions when setting up your goals . What does your business idea look like in the next 5 years?

What can you do now to test your long-term goals? And lastly, what is the major and enduring purpose of your business? 

So instead of writing you want to have a successful business in a few years as a goal, specify it to “earn Php100,000 per month in two years.” 

Related: How to Improve your Business

2. Develop an entrepreneur’s mindset

There is no doubt that being an entrepreneur is one of the most exciting things you can be. But how do entrepreneurs think and behave?

First, they spend time with successful people. If you want to be the best, you need to surround yourself with the best. Become part of a group where you can learn and share ideas. These people should also support you and motivate you to make the best entrepreneurial decisions. 

More than that, you also need to practice your ability to make quick decisions and stay focused even when everything around you is not working well.

Related: Essential Business Skills

3. Identify your Product Market Fit (PMF): Address a real market need

Product Market Fit is a scenario where your target customers are purchasing, using, and telling their peers about your products in numbers that are enough to sustain your profitability.

When you skip this process, you’ll miss out on a great product that can satisfy the market. 

Before developing any product, make sure you have the feasibility study to back up that enough people are willing to pay for it. 

Also Read: How to Validate your Business Idea

4. Create a business plan that outlines everything from launch to operation

Your business plan will serve as the steering wheel of your business venture from the day you launch it, to the day it grows. A great business plan will guide you on what you need to do in every stage of your business. 

Thankfully, making a business plan for the next 5 years is not as hard as you think. Instead of treating it as a one-time document, picture it as an ongoing project that is made up of mini-plans that cover sales, marketing , operations, pricing, and other aspects of your business.

5. Prepare everything you’ll need to launch your business

Before launching your business idea, you need to do your assignment. This involves researching your industry, finding out about your competition, and mapping out your financial plan . 

This sounds like a lot of work but if you forgo this duty, you’ll end up being unprepared to take on the market. When you feel like you need to do a thousand things at once, do not hesitate to outsource .

If you can’t afford to hire help, delay your launch until you have settled everything. Here’s a checklist of what you should know before launching your business venture:

• Vision and mission
• Financial plan
• Tax obligations
• Business plan
• Business processes

6. Set up strong systems & workflows

Can you imagine how long it would take for a fast-food chain to serve your burger if they did not have a clear business process and workflow ?

Setting up these things will enable you to communicate better with your employees, and get things done more effectively. This leads to better customer satisfaction. 

7. Build a great team

Great businesses have high-performing teams that can communicate well with each other. As an entrepreneur, your goal should be to cultivate a strong team and encourage employees to work with each other towards the same goal.

A great team is goal-oriented, committed to their roles, has diverse experiences, and is open to learning. When teams have these qualities, as well as a shared set of goals and values, they can help the business grow.

To ensure that your team works together seamlessly and performs to the best of their abilities, you need to demonstrate great leadership skills . 

8. Keep detailed records

Without keeping a detailed record of your transactions, you will be running your business venture through guesswork.

It is recommended to follow this step so you know exactly where your business stands, as well as the challenges you will be facing. This way, you can create the right business strategies to overcome certain challenges.

9. Provide excellent customer service

It takes more than an awesome business idea and capital to ensure business success. You also need to ace your customer service .

A study by NewVoiceMedia revealed that 51% of customers will not do business again with a company after a bad service experience. 1

Considering this, meeting your customer’s satisfaction is mandatory if you want to enjoy more sales opportunities in the future.  

8 Tips for Achieving Success in Any Business

There is no clear recipe for success, especially in business. Before you bring your business idea to life, you need to be armed with tips that will increase your chances of being successful.

1. Have a clear vision of what you’re trying to achieve

When it comes to running a business, you need to have two clear visions: short-term and long-term. Your short-term vision will help you get through day to day operations.

On the other hand, your long-term vision will be the driving force that will help you navigate the long and arduous journey of running your business. 

2. Find out what makes your product, service, or brand unique

No matter what industry you belong to, you are probably dealing with intense competition. Your USP will help set you apart from other businesses that offer the same products and services as you.

If you don’t figure out what your USP is, you’ll simply blend into the background. 

Your USP can be many things. It can solve a problem, take away your customer’s pain point, or satisfy a need. For instance, there are many shampoo products customers can choose from today.

If you want to be unique, you can sell shampoo bars made from wholesome ingredients to limit plastic waste. 

3. Learn how to market effectively

When starting a business, you can’t expect to have thousands of customers by simply telling your relatives and friends that you launched a product.

You need to dive deep and develop effective marketing strategies to get the word out about your business. 

With marketing, you will reach and connect with your target customers, and set the pace for how your business will run.

Failing to understand the importance of traditional and digital marketing means you will lose out to your competition, and miss out on targeting opportunities. 

4. Know your competition

You may think there’s no need to learn about your competition because you’re not a competitive person, but finding out who your competition is, what they are offering, and how much their services are will help you make your brand stand out more.

When you know your competition, you can price your products competitively, respond to marketing campaigns with your unique initiatives, and have the upper hand when it comes to bringing relevant information to your customers. 

5. Find Opportunities

Once you launch your business, you may think there is no need for you to study the market anymore. However, examining the current market condition will help you find more opportunities for sales.

Finding opportunities involves working on an existing concept and improving it.

For instance, if you noticed that most of your customers are using mobile, you can leverage the power of mobile-optimized websites to get you more leads and conversions. 

6. Stay focused on your goals

Staying focused is one of the most valuable qualities of any business owner. However, how can you maintain your focus if you have to worry about your marketing, sales, expenses, and managing your staff all at once? 

Writing your goal always helps. Make sure to keep your goal list visible so you will always be reminded of the reason why you are working.

Aside from that, set milestones. It can be extremely frustrating to not see results when you are only focusing on your long-term goal. By ticking off small tasks, you will stay more motivated. 

7. Have a plan for growth

In the previous section, we tackled the importance of a business plan not only for your day-to-day operation but also for your growth. 

Your business growth plan outlines your strategy. This can be something as simple as phrases and bullet points, or an in-depth document. After executing your plans, track your progress, and adapt based on your findings. 

Growth is vital for the long-term sustainability of your business. It does not only help you get new sales, but also acquire new assets, attract better talent, and offer more useful products.

8. Build relationships with customers & other businesses

Forging relationships is mandatory for business owners, especially with your customers. Your target marketing will be more comfortable with your brand if they feel valued.

Keep in mind that repeat customers are more profitable than new ones, so take time to nurture them by asking them for feedback, showing genuine interest in their experiences, and encouraging them to converse with you. 

Your customers are not the only ones you should build relationships with.

You must also make sure you develop a good relationship with other businesses . To do this, routinely communicate with your suppliers , offer help, and ask for feedback. 

What Successful Businesses have in Common

It can be demotivating to think that the odds of your business lasting for more than a decade are slim based on evidence. To help you get a better picture of what you should work on, we’ve rounded up the characteristics successful businesses have in common.

1. A Strong USP

Competition is tough – that may not come as a surprise to you. But if you don’t find a way to ace your competition and stand out, your customers won’t patronize your products. Therefore, business success would be out of the picture. 

Whether it’s hiring the best staff , offering great customer service, selling the lowest-priced items, or finding unique raw materials, there are countless wants to make your business shine from your competition. 

2. Efficient Businesses & Operational Processes

When you don’t prioritize streamlining your business and operational processes, you will simply be wasting effort, time, and money. 

So how can you develop your business and operational processes?

First, examine your current processes. If your teams are wasting their time and resources on things that do not matter in the long run, chances are, it needs a drastic improvement. Do not be afraid to ask your team managers and employees for suggestions. 

Additionally, automate as many tasks as you can. This way, you can decrease the risk for error, and finish tasks at a faster rate. 

Related: Best AI Tools for Business

3. Well-maintained Accounting

Improving accounting & bookkeeping processes in your business will not only lead to better efficiency but also loss prevention and higher revenue. 

Whether you run a small business or a huge corporation, you should streamline accounting processes, but how exactly can you do this?

First, automate repetitive tasks. Technology is your friend, and all departments of your business can benefit from it, even accounting. 

If you don’t have time to do accounting yourself, or cannot afford to hire a full-time accountant, you can outsource this service . Having a reliable accountant on your team will help you gain valuable insight into your growth. 

4. Excellent Marketing Tactics

If you look at all successful entrepreneurs in different industries, you will notice that they have a heavy focus on marketing. 

Marketing goes beyond spending thousands of pesos on Facebook and Instagram ads. It also involves planning how you can make a connection with your target customers.

Even if you don’t have a huge budget for marketing, that is not an excuse to skip it. Instead, it’s a reason to work harder to create more valuable content for your customers.  

5. A Well-Built & Effective Team

Just because you posted a vacant position on a local job board does not mean the best talent will immediately knock on your door.

As observed in the top businesses in the country, they value their employees by giving them competitive salaries and benefits.

When the team is well compensated and experiences the benefits of work-life balance, employees will work better towards achieving their goals. 

6. Focuses on the Customer

If you don’t want to be another faceless brand, you need to be fully committed to making your customers happy. 

The most profitable business is not afraid to do the leg work in keeping in touch with their customers. Their target market is always at the center of all their initiatives and development processes.

7. Gets helpful insight from advisors and mentors

Even if you have decades of experience in running a profitable business, you still need the help of trusted advisors and mentors to help you make more informed decisions.

When you have a successful entrepreneur on your side, someone can challenge your vision. They are also the best ones to ask if you are at a crossroads on how to run your business.  

8. Resilient & Adaptable

The pandemic has taught millions of Filipinos that adapting to unexpected situations is integral for survival. For instance, many restaurants now offer al fresco dining and delivery options to increase orders. 

If you want to become a successful entrepreneur, you need to be prepared to pivot from your current strategy and try new things. This can include launching a new product, changing your raw materials, or expanding your list of offers. 

• NewVoiceMedia

About MJ de Castro

MJ de Castro is the lead personal finance columnist at Grit PH.

MJ started her career as a writer for her local government’s City Information Office. Later on, she became a news anchor on PTV Davao del Norte.

Wanting to break free from the shackles of her 9-to-5 career to live by the beach, she pursued remote work. Over the years, she has developed a wide specialization on health, financial literacy, entrepreneurship, branding, and travel.

Now, she juggles writing professionally, her business centering on women’s menstrual health, and surfing.

Education: Ateneo de Davao University (AB Mass Communication) Focus: Personal Finance, Personal Development, Entrepreneurship, & Marketing

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How To Start a Business in the Philippines

Starting a business in the Philippines offers excellent opportunities for entrepreneurs. With its robust economy, strategic location, and skilled workforce, the country has become an attractive destination for local and foreign investors. However, navigating through the process of starting a business can be complex. This comprehensive guide will walk you through the essential steps and considerations to successfully establish your business in the Philippines.

1. Registration Process:

To register your business in the Philippines , you need to follow these general steps:

• Business Name Registration: Choose a unique business name and verify its availability with the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC) for corporations. Submit the necessary documents and pay the required fees.
• Barangay Clearance: Obtain a barangay clearance from the local barangay (neighborhood) where your business will be located.
• Mayor’s Permit: Apply for a mayor’s permit (business permit) from the city or municipal hall where your business will operate. This requires submitting various documents such as proof of business registration, location clearances, and tax-related requirements.
• Tax Registration: Register your business with the Bureau of Internal Revenue (BIR) for taxation purposes. This includes securing a Tax Identification Number (TIN) and understanding the applicable tax obligations.
• Social Security System (SSS), PhilHealth, and Pag-IBIG: Enroll your employees in the mandatory government social security, healthcare, and housing programs.

2. Business Structures:

Business Structures According to Philippine Laws:

Sole Ownership : Sole ownership, also known as sole proprietorship, refers to a business structure owned by a single individual. In the Philippines, this type of business is subject to an eight percent tax imposed on self-employed individuals. Sole ownership businesses are required to register with the Department of Trade and Industry (DTI) in accordance with Philippine law.

One Person Corporation (OPC): One Person Corporation differs from Sole Proprietorship in terms of the level of risk involved. Similar to a Domestic Corporation, an OPC limits the liability of the sole shareholder to the extent of their share capital. Under this structure, the assets of the company are separate from the personal assets of the business owner, ensuring that creditors can only pursue the company’s assets. OPCs must comply with the regulations set by the Securities and Exchange Commission (SEC), whereas Sole Proprietorships must abide by the laws of the DTI.

Domestic Corporation : Domestic corporations have a distinct legal entity separate from their stockholders and other corporations involved. They can be likened to a Limited Liability Company (LLC) or a Private Limited Company (PLC) due to their control and characteristics as defined by the Corporation Code of the Philippines. Stockholders of a domestic corporation are liable only up to the extent of their share capital. Similarly to an LLC, a domestic corporation has its own liabilities and must fulfill its financial obligations according to the law.

Partnership : A Partnership consists of a minimum of two owners who share both the responsibilities and income of the business. Partnerships need to be registered with the Securities and Exchange Commission (SEC).

Foreign Corporations:

Branch Office (BO): A branch office serves as an extension of a corporation based outside the Philippines, carrying out its business activities within the country. The Philippine branch office must comply with the regulations of the Securities and Exchange Commission (SEC) in the Philippines, as well as those of the country where the parent company is located.

Regional Operating Headquarters (ROHQ): A regional operating headquarters is established to provide services to the affiliates, branches, or subsidiaries of a foreign-owned company in the Philippines, the Asia-Pacific region, and other foreign markets. However, an ROHQ is not allowed to engage in solicitation or advertising of goods and services on behalf of its parent company or any of its affiliates, branches, or subsidiaries, either directly or indirectly.

Regional Area Headquarters (RHQ): Regional area headquarters are incorporated to manage the affiliates, branches, and subsidiaries of a multinational company in the Asia-Pacific region. RHQs are not permitted to generate revenue or conduct business operations within the Philippines. The operational expenses of a regional area headquarters are funded through inward remittances from its parent company.

Representative Office (RO): refers to an establishment in the Philippines by a multinational company to enhance its local corporate presence. Its primary responsibilities include disseminating information, marketing products, ensuring quality control, and facilitating communication. It is important to note that a representative office does not possess a distinct legal identity from its parent company. Moreover, generating revenue within the country is strictly prohibited for an RO, as it transfers all operational expenses and liabilities to its head office located in another country.

Foreign individuals are allowed to own and operate businesses in the Philippines in accordance with Philippine laws.

3. Corporate Bank Account Setup:

Opening a corporate bank account is crucial for your business operations. To set up a corporate bank account in the Philippines, you will typically need the following:

• Business Registration Documents: Present your business registration documents issued by the SEC or DTI.
• Identification Documents: Provide valid identification documents of the company directors, officers, and authorized signatories.
• Tax Identification Number (TIN): Obtain a TIN for the business and provide it to the bank.
• Other Bank-Specific Requirements: Different banks may have additional requirements, so it’s advisable to inquire directly with the bank of your choice.

4. Company Office Address Setup:

When establishing a business in the Philippines, you need a physical office address . Options include:

• Lease a Commercial Space: Rent or lease a physical office space, which may require a longer-term commitment and higher costs.
• Virtual Office: A cost-effective solution that provides a professional business address, call handling services, and occasional access to meeting rooms.Serviced Office Spaces: Fully furnished and equipped office spaces with flexible lease terms, ideal for startups or businesses requiring a temporary office setup.

5. Visas for Foreign Workers:

If you plan to employ foreign workers in your Philippine business, you should be aware of the following visa options:

• 9(g) Visa : This is a working visa for foreign nationals employed by Philippine companies. It requires sponsorship from the employer and approval from the Philippine Bureau of Immigration.
• Alien Employment Permit (AEP): This permit is needed for foreign nationals working in the Philippines and is typically obtained by the employer.
• Special Work Permit (SWP): Issued to foreign nationals performing short-term work or specific activities in the country.

6. Estimated Employee Salary Range:

The employee salary range in the Philippines varies depending on factors such as industry, location, job level, and skills. On average, entry-level salaries start around PHP 15,000 to PHP 35,000 per month, while managerial positions can range from PHP 40,000 to PHP 100,000 per month. These figures are approximate and subject to market conditions and specific job requirements.

7. Estimated Office Space Cost:

The cost of office space in the Philippines depends on the location, size, and type of space. Here are some general estimates:

• Traditional Office Space: Rental costs vary significantly, with rates ranging from PHP 500 to PHP 2,000 (and higher) per square meter per month in Metro Manila. There are usually additional costs for fitting out the office space.
• Virtual Office: Costs can range from PHP 2,000 to PHP 10,000 or more per month, depending on the package and location.
• Serviced Office Spaces: Prices typically start from PHP 5,000 to PHP 20,000 per person per month, offering flexible lease terms and fully equipped workspaces.

8. Problems that can happen when registering your business:

While registering your business in the Philippines, you may encounter some challenges, such as:

• Complex Regulatory Procedures: Navigating through the bureaucratic processes and understanding the legal requirements can be time-consuming and overwhelming.
• Documentation Requirements: Gathering the necessary documents and ensuring their accuracy can be a cumbersome task.
• Language Barrier: If you are not fluent in Filipino or English, communication barriers with government agencies and officials may arise.

Conclusion:

Starting a business in the Philippines requires careful planning, adherence to legal requirements, and navigating through complex procedures. Triple i Consulting is an experienced consultancy firm that can provide invaluable assistance in registering your business. Their expertise in business registration and local market knowledge can help streamline the process and ensure compliance, allowing you to focus on growing your business successfully.

Remember, proper research, guidance, and compliance with local regulations are essential for a smooth business establishment in the Philippines. With determination and the right support, you can embark on a rewarding entrepreneurial journey in this vibrant Southeast Asian nation.

If you’d rather not handle these laborious (and sometimes confusing) tasks on your own, there’s another option available to you. You can reach out to us through the following methods: Contact Us Here , complete the form provided below, dial +63 (02) 8540-9623 to speak with us directly, or send an email to  [email protected] . By doing so, you can schedule an initial consultation with one of our experts specializing in business registration in the Philippines.

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7 Steps on How to Start a Business in the Philippines

Iris Perez | March 16, 2020

Really? Not working for a preview? Starting a business may it be big or small, is a huge commitment of time, effort and resources to nurture and grow a business. Every day business owners face a  list of struggles  and decisions in running their business. There is no secret formula or trick overnight to make a successful business.  

However, here are 7 steps on how to start a business in the Philippines and you will be on your way to a successful business: 

Step 1: Choose a Business Idea 

Start by thinking about which business you want to start. Concentrate on your current skills, experience, and follow your passion to choose the right business idea for you. The business idea must also fit your lifestyle. 

Step 2: Conduct market research 

Knowledge is power. Knowing what is in the current market and the competition of the kind of business you want to tackle on. Understanding your potential customers’ needs and habits furthermore you as a business can provide it to them. Make notes on the questions that you will ask must be beneficial information for your business. How to obtain the best answers through online research, groups/communities, and surveys.  

Step 3: Create your business plan and goals 

Starting your business plan early on because it will be your strong foundation for your new business. You will need it if you are intending on partner up with investors. In your business plan, you will write the details of your goals and how you plan to achieve them.

Step 4: Prepare your finances 

When starting a business here in the Philippines you need to have a capital. To finance your start-up costs to purchase pieces of equipment, supplies, tools, as well as to cover monthly ongoing costs for six to 12 months before you make a profit.

Step 5: Choose your business structure 

Determining your business structure is important since it will define the costing, tax, ownership, and jurisdiction requirements of your business. We would recommend seeking professional advice from an accountant or financial adviser.

• Sole proprietorship The sole proprietorship is the simplest type of business structure. It simply refers to a person who owns the business and is personally responsible for its debts. In other words, the owner and the business are the same entity.
• Partnership A partnership involves two or more people going into business together with a view to making a profit. There are two kinds of partnership: general and limited. In a general partnership, business partners share unlimited liability for the debts and obligations of the company. On the contrary, limited partnerships are called as such since some partners will have unlimited liability, while others will have liability equal only to the amount of their capital contribution.
• Corporation Corporations are owned by a minimum of five (5) and a maximum of 15 shareholders. Each of the incorporators must hold at least one share in the corporation, and their liability is limited only to the amount of their capital share. A corporation can either be stock or non-stock company regardless of nationality. Such a company, if 60% Filipino – 40% foreign-owned is considered a Filipino corporation; if more than 40% foreign-owned, it is considered a domestic foreign-owned corporation. Stock Corporation is a corporation with capital stock divided into shares and authorized to distribute to the holders of such shares dividends or allotments of the surplus profits based on the shares held. Non-Stock Corporation is a corporation organized principally for public purposes such as charitable, educational, cultural, or similar purposes and does not issue shares of stock to its members. 

Step 6: Apply for licenses and permits 

Being a business owner, you should recognize and be familiar with legal compliances because it is an integral part of any business. 

Here’s the list of government agencies that you need to register your business : Sole Proprietor Business a. Department of Trade and Industry (DTI) b. Local Government Units – Barangay and Mayor’s Office c. Bureau of Internal Revenue (BIR) d. Social Security System (SSS) e. Department of Labor and Employment (DOLE) f. Home Development Mutual Fund (HDMF) g. Philippine Health Insurance Corp. (PhilHealth)

Partnership and Corporation a. Securities and Exchange Commission (SEC) b. Local Government Units – Barangay and Mayor’s Office c. Bureau of Internal Revenue (BIR) d. Social Security System (SSS) e. Department of Labor and Employment (DOLE) f. Home Development Mutual Fund (HDMF) g. Philippine Health Insurance Corp. (PhilHealth)

In addition, certain businesses are required to secure a special clearance, permit or license from selected government agencies. 

Registering your business legally in the Philippines may be complicated at first but there is always a help desk available.

Step 7: Build your team 

Hiring the right people for your startup business is crucial. You need to have a skillful, hardworking and trustworthy team to drive your business to success. Remember, employees, are the most valuable asset for your business. 

If hiring too many in-house employees is expensive for your startup business, you might want to consider outsourcing such as your  accountant, bookkeeper  or even your IT team. 

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Bigasan Business 2024: How To Start, Capital, Profit (Plus, Tips To Succeed)

Rice has been a staple of the Filipino diet since time immemorial . Therefore, opening a bigasan business or a rice retail business in the Philippines can be a profitable venture for you if the conditions are right.

As with any other food business, there are two ways to make this happen. Either start your own rice retailing business or franchise an already-established brand .

Each has pros and cons, so you should weigh your options carefully before venturing into this type of business.

Let this short article be your guide.

Table of Contents

What is a bigasan or rice retail business.

A bigasan is a retail store that sells a variety of rice. In the Philippines, this is typically done through a simple storefront where bags of rice are opened as a display for customers. The name of the variety of rice and the corresponding price are shown on each bag.

Customers need only tell the store’s staff what variety and how much rice they buy. The staff will then put the requested amount in a bag and weigh it before the customer. After the customer pays for it, then the transaction is complete.

There are specialized rice businesses that sell only rice, but there are also retail outlets, such as sari-sari stores , that carry rice as part of their selection of products.

Bigasan Business at a Glance

How much capital you need to start a bigasan business depends on your business model. Capital investment may start from ₱50,000 (retailer) to ₱300,000 (franchise).

2. Customers

Residences, restaurants, hotels, and other establishments that sell rice meals.

3. Competitors

Usually, just other rice businesses. The supermarkets have a different client base since rice from supermarkets is usually at least 50% more expensive.

4. Who Is It For?

People who prefer to run a simple retail store with an already established market.

5. Pros & Cons

• Steady demand since Filipinos eat rice every day
• It requires minimal marketing because consumers are already familiar with the product
• Straightforward business with the potential to make a living out of it
• Rice is vulnerable to pest attacks, especially if stored improperly
• The quality of rice deteriorates after three months; it spoils easily
• Challenging to be different from competitors aside from the price

How Does a Bigasan or Rice Business Make Money?

Rice businesses typically buy their rice bags from a wholesaler. They then add a markup or “patong” to the cost of the rice. After that, they decide the price per kilogram to sell the rice to their customers. Whatever they earn from selling the rice becomes the income from the rice business.

Note that having a sizable margin is challenging unless you buy in bulk. That’s why it’s typical for a rice business to have a high capital requirement.

Where Can I Find a Rice Supplier?

If you are not getting a franchise, you must find a rice supplier yourself. This could be a wholesaler, a rice mill, or a farmer. You are more likely to know the best places to get rice if you search your area. However, here’s a quick list of well-known rice suppliers in the Philippines:

• DanJethro Grains by A&V Rice Mill – an independent rice mill in Mapandan, Pangasinan, operating since 1993.
• Wil-Lys Cereal Trading Corporation – located in Solana, Cagayan. They sell many varieties, including export-quality rice.
• JDL Nueva Ecija Rice Dealer – also known as Jorem Palay Buying Station, this supplier has been selling farm-fresh rice from Lupao, Nueva Ecija, for 30+ years.
• Primavera Rice Mills – selling quality rice for 46+ years now; among the top rice suppliers for restaurants and fast-food chains in Metro Manila. They are located in Guiguinto, Bulacan .
• RMR Rice Mill – is a popular wholesaler among rice retailers. They are located at Wakas Intercity, an agricultural bagsakan , in Bocaue, Bulacan.

If there is no viable rice supplier in your area, you may want to look for a franchise instead. Here’s a quick list of rice retail franchises you can contact:

• GRAINSMART – has more than 800 franchise branches nationwide. Aside from rice, they also have gas and water refilling business franchise packages. Their head office is located in Quezon City, Metro Manila.

Update: Bigasanko.com has been removed from the list due to an inactive social media page.

How To Start a Bigasan Business in the Philippines: 9 Steps

1. research your market and competitors.

You can’t expect to start a bigasan or rice retail business and succeed right away. You first need to know about your area’s potential customers and competitors.

Find out the typical kinds of rice people in your area buy. How much do they pay for it? If you do start a rice business, then can you also sell it at the same or a cheaper price?

Next, you need to learn any information you can about your competitors. How many are there, and where are they located? If there are too many rice retailers, you may want to rethink starting one yourself.

2. Choose a Location Frequented by Your Target Market

Find a location where it’s convenient for your customers to buy from you. Examples would be groceries or wet markets ( “palengkes” ) where people are already conditioned to buy rice.

You also have to ensure enough space to store and display the sacks of rice in your chosen location. It’s also ideal that you can keep the rice there safely so the product will be protected from heat, pests, and even floods.

3. Choose the Right Rice Supplier

With your research in hand, you now have to find a supplier for the rice typically bought in your area.

You have the option to:

• Find a wholesaler or rice mill that can deliver to your area
• Become a rice business franchisee

List all available suppliers and cultivate a long-term relationship with them. This way, you can avail of discounts when buying in bulk and provide your customers with a wide variety of rice.

Your goal is to get a price to remain competitive in your area. If you can find an excellent supplier, starting a rice retail business will be much cheaper than becoming a franchisee.

However, becoming a rice business franchisee has benefits that justify the additional cost. They already have an established way of getting a rice supply, so getting started’s much easier. You can also learn how to run a successful bigasan from them.

4. Secure a License From the National Food Authority (NFA)

Once confident that you can successfully run a rice retail business in your chosen area, you must start with government compliance .

The law states that the National Food Authority (NFA) must approve every corn or rice business in the Philippines, whether commercial or NFA rice/corn.

If you plan to open numerous outlets, you need one license for your primary/principal store. All other outlets will be considered as branches.

To get the license, go to the NFA office that has jurisdiction over where you plan to establish the rice business in the Philippines.

Get the application form from the licensing officer (LO).

Submit the accomplished form and pay the application fee of ₱100. The license fee varies depending on your capital.

5. Ensure That You Have the Required Equipment and Facility To Start the Rice Business

An NFA personnel will personally visit your store to check for the following:

• Calibrated weighing scale
• Price tags (the price of the rice per kilogram)
• White-painted rice boxes
• Signboard (45 cm wide and 75 in long) showing your business name, NFA control number, and the words “Licensed Grains Retailer” or “Wholesaler”
• Classification, variety, and grade of the rice grains you’re going to sell

Once approved, the NFA inspector will issue you a notice of inspection. Bring this with the official receipt and proof of compliance with deficiencies (if any) to the NFA office to get the license.

For franchisees of Grainsmart , you don’t need to file for a license because it’s already included in their packages. The downside is that you need to shell out higher capital to start the franchise business –a minimum of ₱298,000 for Grainsmart.

6. Register Your Business

Register the bigasan business with the Department of Trade and Industry (DTI) if you’ll operate it as a sole proprietorship or the  Securities and Exchange Commissions (SEC) for rice businesses run by a partnership or corporation.

You must also register with the BIR and get a business permit from your municipal or city hall. After that, your business registration is complete. Just note that you must file monthly, quarterly, and annual taxes . You also have to pay fees to your LGU quarterly or annually.

7. Set Up Your Bigasan & Store Your Rice Properly

Taking care of your rice starts from the supplier and ends only when your customers buy it. When transporting rice, separate it from other goods and make sure they’re all appropriately covered. 

Otherwise, prolonged sun exposure will cause the rice to lose moisture and shrink by up to 3%. The insufficient covering may also expose it to flying weevils ( bukbok ), especially if the transport vehicle passes by rice fields.

Once it arrives at your store, handle it with care. Don’t throw the rice bags, or the grains might break.

Keep the storage space clean and sanitized to prevent infestation of rats, molds, weevils ( bukbok ), and other pests.

Use the “first-in, first-out” inventory method to ensure that every sack of rice sold is high-quality and doesn’t exceed its shelf life. Remember, rice quality decreases significantly after three months. Any rice that spoils will dramatically impact the profitability of your rice business.

8. Promote Your Bigasan

You should know what’s essential for your customers when choosing a bigasan. Communicate that you can deliver that critical benefit.

You can be as creative as possible when promoting your bigasan locally and online. Talk to your neighbors—partner with other businesses. Join chat groups for the local community. 

There are many ways to promote a bigasan business. As long as your target customers are there, you should also promote there.

9. Be Strict With Your Inventory & Records

A common reason why a rice retail business might fail is because of poor inventory and record management. A few kilograms of lost or damaged rice can wipe out more than a day’s worth of your income.

So make sure to be very strict in taking care of your inventory. You should also record everything that goes in and out of your store. 

If you don’t know how to do your records correctly, you can use the template for the sari-sari store inventory and sales record provided here . It’s the same concept, but you only have to list down your rice’s different varieties, brands, and weights.

Tips & Warnings

• Set aside a regular budget for the rice supply. Some dealers won’t deliver rice to retailers unless they order a minimum amount of rice from them.
• Try to avoid selling any rice on credit, especially for residential clients. It might be unavoidable for business clients; however, deal only with reputable businesses. Bad debts can severely impact your operations.

Go back to the main article: Best Small Business Ideas in the Philippines with High Profit 

Written by Rod Michael Perez

in Business and Finance , Juander How

Last Updated May 3, 2024 11:34 AM

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

Browse all articles written by Rod Michael Perez

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5 New Tips How to Start a Small Business in the Philippines

How to start a small business in the Philippines , or how to start a business in the Philippines with small capital? Starting a tiny low business within the Philippines is becoming an accessible venture for several Filipinos, irrespective of age.

Some entrepreneurs start young with barely any capital at their disposal, using their skills and abilities to supply goods or render services, and marketing their business on social media. Others, meanwhile, find that after years of employment, they now have enough savings to speculate in a plan that has been brewing in their heads.

That being said, not all businesses guarantee success. There are a variety of various reasons for a little business to falter several months after its inception. To avoid immediate failure, it’ll be helpful for any budding business owner to grasp the way to start atiny low business the proper way.

The Three Types of Business Organisations

First off, let’s undergo the fundamentals of starting a business in the Philippines; that is to  identify your enterprise. Here are the 3 ways to structure a business:

Sole Proprietorship

It is the simplest variety of enterprise you’ll find within the Philippines. Being the only proprietor, the business becomes an extension of yourself, including your net worth.

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This makes it riskier compared to the opposite forms of business organisations, because sole ownership means you’re accountable for managing all assets and liabilities. Small businesses often follow this business model.

Partnership

It refers to the joint collaboration between two or more parties, wherein they share resources and various assets in growing the business. This suggests that liabilities and revenue are shared and distributed accordingly likewise.

Corporation

It is often the sort of business organisation for larger companies, because it allows a bunch of people to control as one entity and participate as shareholders, effectively providing the business certain tax benefits. Corporations are often further defined as S corps, C corps, LLCs, and non-profit corporations.

Three Most Common Types of Small Businesses

As the demand for products and services still grows, more and more small businesses are shoring. In fact, over 99% of registered businesses within the Philippines are micro, small, and medium enterprises.

You can grow your finances by starting a business venture and being your own boss. Here are the three main styles of businesses to consider:

These businesses involve the exchange of labour, or the performance of an action, at a set rate between the business and a client. Examples include banks, barber shops, and digital marketing agencies. This also means you can try how to start a small food business in the Philippines even in your own home!

Read also: 5 Homemade Food Business Ideas You Can Start Immediately

Merchandising

This involves the buying and selling of products, wherein the business sources the products at wholesale costs and delivers them at retail prices. Examples include groceries and malls, sari-sari stores, and online stores.

Read also: Fastest Growing Online Business In The Philippines

Manufacturing

This involves the assembly of certain goods through business sourcing and processing raw supplies, materials, or ingredients to supply the products available. Some examples include food and beverages, like bread, snacks, milk, and soda; and a good range of products, like soaps, shampoo, and other trending items.

A small business may be any of those three, and given the impact of the pandemic on the socioeconomic welfare of the many Filipinos, it’ll be informed study and consider which sort of products or services may be most profitable. 

Putting off a auto loan to start out a transportation or courier service business or applying for an equity credit line to produce rental space are possible options for attiny low business with long-term returns.

Do You Want to Manage Multiple Marketplace Just by Single Person?

Of course you can! You can handle multiple stores from all marketplace just by single dashboard. Cut your Business’s cost, and Boost your Efficiency at the same time.

When starting a little business within the Philippines during these challenging times or starting a business in the Philppines for foreigners, it’s important for any business owner to be financially educated. Like most investments, there are risks involved in running a business. Knowing the way to manage debt, as an example, can play an impactful role within the growth and survival of a business.

Learn how to manage your money with resources from Metrobank’s Money Basics to assist make sure that you’re financially equipped to begin a business. Additionally, be at liberty to send a message or contact Metrobank today for any questions on the way to apply for a loan.

How to Start a Small Business in the Philippines

How to start a small business in the Philippines ? A business often starts with the seed of a concept. However, for this business idea to achieve success, you have got to nurture and make sure of this seed so it can grow and bear fruits. 

How to start a business in the Philippines 2022 ? Here are some main steps on the way to start a little business within the Philippines:

Planning the Business

How to start a business in the Philippines ? While these could appear an excessive amount of for attiny low business, carefully entertaining all possible scenarios is practising due diligence as an entrepreneur.

After completing these project studies and evaluating the results, you’ll be able to proceed with preparing a business plan. A business plan may be a compilation of various documents detailing everything about the business: its structure, goals, and the way it works.

Even if you want to apply the way how to start a small business at home, you also need to do the research, including names of your brand, brand niche, and more. 

Funding Your Business

Next step of how to start small online business in the Philippines is funding your business. An important note to contemplate when starting atiny low business is to avoid putting yourself in debt to speculate, especially after you don’t seem to be liquid enough to pay back a loan just in case the unfortunate happens and therefore the business doesn’t determine.

Naming Your Business

How to make business in Philippines and how much money do you need to start a small business in the Philippines? Actually, it all depends on what kind of business you intend to do. Okay, once funding is nice to travel, it’s time to make your mind up on the name of your business. It helps to think ahead, as your business name can eventually transform into a brand that represents what the business and also the organisation is all about.

As consumers don’t want to affiliate themselves with businesses of ill reputation, choosing a brand for your small business can spell the difference between success and failure.

Business Registration

With all the requirements to start a small business in the Philippines or the required information complete, you’ll make your small business official by registering it. Whether or not you run a web shop and no physical store exists, these documents serve to legitimise your small business.

Operations and Marketing

The last step to confirm you’re equipped to begin atiny low business is fulfilling operations and implementing your marketing strategies.

Going digital may be a rapidly growing trend in recent years, and with the quarantine restrictions set in situ because of the pandemic, it’s become more beneficial for little businesses. Utilise the available and relevant social media platforms to plug your small business and reach your target market.

Read also: What is a Good Online Business to Start in the Philippines ?

Starting a small business in the Philippines, irrespective of size or organisation structure, offers a chance to find out and grow as a person. But it’s always noteworthy to grasp that there’s a fine line separating business success from bankruptcy. To secure your future, work towards building a savings fund first and clear your books of debt.

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How to Start a Business in the Philippines: Procedure & Requirements

• Author Drew Donnelly, PhD
• December 16, 2019

Hire borderless talent with Horizons

Starting a business in the Philippines is an exciting prospect full of hope and good wishes for the opportunities to come. Its growing economy, expansive growth in the service industry, vibrant culture and preferable climate have attracted many investors to this vibrant locale. You are not alone in recognizing this opportunity in front of you.

Approximately 13,000 new businesses have opened each year in the Philippines since 2006 .  

However, there are a few things that you should know about this country before making your investment.

Our local experts at Horizons discuss the framework for starting a business in the Philippines. We are also available to discuss your specific situation during an initial consultation, so don’t hesitate to reach out to us.  

Start your business in the Philippines with Horizons.

Types of business structures in the philippines.

The Philippines recognize a few different corporate structures , such as:

Sole Proprietorship

A sole proprietorship is a business owned by one individual who is personally liable for any of the debts of the business. The individual and business are considered a single entity.

Partnership

A partnership is a professional association between two or more people. In the Philippines, you can choose whether to structure the partnership with limited or unlimited liabilities. Limited liability partnerships limit the potential liability of a partner up to the amount of their investment. Larger partnerships are required to register with the Securities and Exchange Commission.

Corporation

Another recognized business entity is a corporation. This business structure requires that you have at least five shareholders. The liability of shareholders is limited to the total amount of their invested capital. Corporations must be registered with the Securities and Exchange Commission.

Other Options

If you have an existing business outside the Philippines, you may consider other options, such as establishing a local branch office or representative office . While these are not technically separate legal entities, they may allow you to expand to the Philippines without making a major investment.

However, these offices may be limited on the type of work that they can complete and whether they can generate profit. 

What to know before starting a company in the Philippines

Keep in mind that there will be various costs associated with the registration process. You may incur additional fees for notarizing your documents, receiving legal advice or taking care of other aspects of the registration process.

The process to register a business in the Philippines is different for foreigners than it is for local residents.

When registering your business, you often need multiple copies of the same documents, so be sure you submit adequate numbers of forms where applicable to avoid unnecessary delays .

Additionally, the process to register your business will be very different depending on what type of business structure you select.

Guide to Starting a Business in The Philippines

Step by Step Procedure and Requirements (Legal Documents)

Starting a business in the Philippines involves many steps, so it can be a time-consuming process. Here are some of the steps that may be involved in the process:

1. Search for and Register Your Name  

The first step is to see if your chosen business name is available. You can search for the name on the Business Name Registration Site by submitting a priority list of three names for your business if your first selection has already been taken by another business.

Once you have paid the fees and your name selection is approved, you will receive a certificate that is valid for five years.  

2. Notarize Documents

You will need to notarize certain official documents of your company, including your articles of incorporation and the treasurer’s affidavit. Your notarized documents will be submitted in a later step.

3. Apply for Company Incorporation

You will need to submit a variety of forms and other evidence to the Securities and Exchange Commission. The type of documents that are necessary will depend on the type of business you are establishing. For example, for a sole proprietorship, you will submit:

• The business name registration application
• Your passport or special investor residence visa with a passport photo attached
• Proof of minimum inward payment

To register a partnership, you will also need the business name registration application, as well as your articles of partnership that have been signed by at least two directors. You might also need permits, depending on the type of business you are establishing.  

To register a foreign-owned company, you will need to submit the following documents:

• Completed application form
• Notarized articles of incorporation and bylaws
• Written proof agreeing to change the business name
• Board resolution that authorizes the opening of a branch or office in the Philippines
• Financial records

The Securities and Exchange Commission reviews the submitted documents and issues a pre-approval of the application.

The business must pay the required fees and provide proof of payment. Then, a waiting period is put into motion so that the necessary documents can be prepared, including the incorporation certificate and supporting documents.  

The business receives a Taxpayer Identification Number after the SEC approves incorporation.

However, the business is still required to register with the Bureau of Internal Revenue to determine the taxes that it will be subject to, to pay an annual registration fee and to obtain approval to print invoices and receipts.

You are responsible for paying tax on your business, as well as making proper withholdings and contributions to the tax system from employee salaries.  

4. Pay Fees

The SEC will issue payment fees after the business applies for company incorporation. The name approval and registration fees must be paid at a bank and evidence of proof of payment submitted to the online system.  

Most companies will be responsible for paying the following fees:

• PHP 100 for the name verification fee
• PHP 1,000 for the registration of the bylaws
• PHP of 150 + 320 to register stock and transfer stock required for new corporations
• A filing fee of .2% of the authorized capital stock or the subscription price of the subscribed capital stock, whichever is higher but not less than PHP 1,000
• Legal research fee of 1% of the filing fee but not less than PHP 10
• PHP 10 for the legal research fee for the bylaws

5. Register with Other Agencies

The business will likely be required to register with other government agencies, such as the Social Security System and the Home Development Mutual Fund. You may also have to register your business with the Department of Trade and Industry and the local Barangay Office.

If you have employees, you must register with the Philippine Health Insurance Corporation. You are responsible for paying a fixed amount for each of your employees into a health insurance fund, which is then used if the employee becomes injured or gets sick.  

6. Obtain Your Business Permit

You may also be required to obtain a business permit from the local municipality. The fees for your business permit are typically .2% of the value of the authorized capital stock. You may also need to obtain additional permits, such as for:

• Fire safety and inspection
• Location clearance
• Electrical inspection

A Mayor’s permit may also be necessary.

The specific types of permits you need are based on the nature of your business .

Associated fees for these permits depend on the nature of your business and land area your corporation will occupy. These fees range from PHP 7 to PHP 5,000, with several being PHP 50 or less.

Before receiving a permit, your business will most likely have to undergo an inspection.  

7. Obtain Barangay Clearance  

You need to obtain a clearance and pay the annual community tax at the local Barangay where your business is located. Submit the following to obtain your clearance:

• Application form
• SEC Certificate of Incorporation and approved articles of incorporation and bylaws
• Location plan or site map and the lease for your office
• Pay the applicable fee, which ranges from PHP 300 to PHP 1,000 in Quezon City but may be higher or lower in other areas

8. Purchase Special Books of Accounts

You must have special books of accounts to register with the Bureau of Internal Revenue.

They are readily available at bookstores throughout the country. Alternatively, if a business has a computerized accounting system, it can register this system the BIR.

The BIR has a special team that inspects and evaluates these systems within 30 days from the date of registration.

Apply with the Bureau of Internal Revenue for Certain Authorizations

You must register your pre-registered TIN with the Bureau of Internal Revenue and report all internal revenue taxes that you expect to be liable for. You must submit the following documents to the BIR:

• Completed application Form 1893
• Completed payment Form 0605
• Securities and Exchange Commission Certificate of Incorporation
• Contract of lease
• Documentary stamp tax return on the original issuance of shares and payment form
• Mayor’s permit or business permit application
• Applicable fees

9. Register with the Social Security System

Submit the following documents to obtain your final registration with the Social Security System:

• Employer registration Form R-1
• Employment report Form R-1A
• A list of your employees that includes information about their positions, monthly salary, date of employment and date of birth
• Notarized articles of incorporation, bylaws and SEC registration

Once your documents are processed, you will receive your SSS employer and employee numbers. The SSS offers training to help teach you about your obligations.

10. Register with the Philippine Health Insurance Company

Complete your final registration with the Philippine Health Insurance Company by submitting the following documents:

• Employer data record Form ER1
• Report of employee-members Form ER2
• Registration with the Bureau of Internal Revenue and the Securities and Exchange Commission
• Copy of your business permit

You will receive copies of forms that provide proof of membership until you receive your employer and employee numbers within 90 days.

11. Register with the Home Development Mutual Fund

Complete final registration with the Home Development Mutual Fund by submitting the following documents:

• Employers data form
• Specimen signature form
• Copy of your Securities and Exchange Commission certificate of incorporation
• Copy of your approved articles of incorporation and bylaws
• Board resolution or secretary’s certificate showing the duly designated authorized representative

After you submit these documents and make your first payment into the fund, you will receive your certificate of registration and your HDMF number.

12. Submit Printer’s Certificate of Delivery of Receipts and Invoices

After your receipts and invoices are printed, you will receive a Printer’s Certificate of Delivery of Receipts and Invoices from the printer.

You must submit this to the Bureau of Internal Revenue within 30 days from the date you received it. You must also submit the following documents to the Bureau of Internal Revenue:

• Your books of accounts
• Your registration certificate for Value Added Tax
• Your registration with the Securities and Exchange Commission
• BIR Form W-5
• Certified photocopy of the ATP
• Notarized sworn statement

You must also submit a copy of the PCD to the BIR RDO that has jurisdiction.

Your business will be responsible for paying a basic and additional community tax.

The basic tax depends on the structure of your business while the additional tax is based on the assessed value of any real property your business owns in the Philippines.

Where to Find Help with Starting a Business in the Philippines

Horizons provides comprehensive business services to help those who are starting a business in the Philippines . Our innovative solutions allow you to open a business in the Philippines in record time at an affordable price. Contact us today to learn more.

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6 Golden Tips For Starting A Small Business In The Philippines

Starting a small business in the Philippines may seem a simple and great idea. However, there are still many factors to keep in mind if you want your business to last and grow.

Here, we listed 6 tips to keep in mind when you’re starting a small business in the Philippines.

1. be innovative.

There’s tough competition in small biz and if you want to make it, you have to be unique. There are many businesses that used humble ingredients or simple ideas and made it innovative to create a unique product. Examples of creative business out of humble ingredients that made it big are lechon kawali chips , easy banana sticks , healthy veggie chips , and many more.

2. Consult a Business Lawyer or Tax Expert

Many small businesses often disregard their legal liabilities until it piles on them. Many aspiring entrepreneurs often venture into business without understanding taxes, permits, and also penalties. When you disregard these responsibilities and are faced with huge penalties, this could affect your business finances. So, it’s best to start consulting an expert or a business lawyer at the start.

3. Choose A Good Business Name

Choosing a business name makes a big impact on your business. It’s normal to name your business after your name or someone special, but make sure it’s easy to remember. Your business name should be catchy but also memorable. It should also make the customers easily understand what your business is all about. Make it short but with an easy recall.

Come up with at least 3 potential names and verify if it’s already been used. Then, register your business name under the Department of Trade and Industry (DTI).

4. Be Consistent With Your Brand

Branding is also important when it comes to marketing your business. It will speak for what your business stands for and find your target market. Identify if you want to go for something chic and fashionable, or affordable and family-friendly. Be consistent with your logo, language, colors, and typeface.

5. Find Reliable Suppliers & Partners

If your business is dependent on suppliers, make sure they are reliable and trustworthy. Before starting a business, make sure your partners will be able to keep up with your business demands. This is very critical when planning a business because changing your suppliers in the middle of business might affect your products’ quality and consistency. So, take all the time in researching.

6. Have A Contingency Plan

While hardwork and determination are important, resiliency can take you a long way. Learn to weather the storms of business. There are times when the business is profitable while there are also lean months.

For many, the practical application of being resilient in business is having a contingency plan. This includes having insurance, extra funds and savings, backup source of income, and also a comprehensive exit plan if everything fails.

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Business Tips Philippines: Business Owners and Entrepreneurs’ Guide

Business Tips Philippines, an online entrepreneurship, management & marketing guide for Filipinos, business owners, leaders & entrepreneurs around the world.

20 Tips to Start a Small Business in the Philippines

November 29, 2016 Vic 1 Comment

The Philippines needs more entrepreneurs. Our country needs entrepreneurial people to start an economic revolution. So if you are planning to start a business or build a start-up company in the Philippines, here are some simple yet important and inspiring tips to guide you on your start-up business.

#1 Plan for a successful business. Don’t just dream to have your own business, but plan to have a successful business. If you only dream to have a business, then what will you do next if your dream to have your own business comes true? Don’t be clueless of the real thing!

#2 Start the right business idea. Choose a business idea not because it’s what’s hot right now but because it’s what will make you fire up for a long time. Be creative and unique!

#3 Get yourself trained. Attend training, workshops or seminars about how to start your chosen business. This will help you learn from experienced business coaches and industry experts. Check out Business Coach monthly schedule of business seminars.

#4 Learn how to save money first. Don’t jump to start a business to make money, but save enough money first to make a business that can stand for at least 3 years without worrying about your cash flow. If you don’t know how to save money, it will be difficult for you to earn money.

#5 Get ready for taxes. Be financially prepared to cover your early expenses, particularly rent, salaries and taxes. Take note that tax rates in the Philippines are one of the highest in ASEAN. However, don’t make it an excuse to defy our tax laws. Be a good taxpayer and have a good night’s sleep.

#6 Consult with a tax professional. Seek the advice of an accountant or tax professional to know how you can save taxes and avoid future tax penalties while doing business in the Philippines. Tax is a burden, but don’t be reactive — be proactive!

#7 Go to Go Negosyo Center. Visit the nearest DTI Go Negosyo Center in your area to check if your small business is eligible to be registered as a Barangay Micro-Business Enterprise (BMBE) to avail benefits, such as income tax exemption and financial assistance.

#8 Register with SEC or DTI. Start registering your business with the Securities and Exchange Commission (SEC) if it is a corporation or partnership. If it’s a sole proprietorship, register your trade name with the Department of Trade and Industry (DTI) .

#9 Register with the BIR. Register your business with the Bureau of Internal Revenue (BIR) . Attend a BIR briefing to know your tax duties and obligations.

#10 Complete your basic business registrations. Get a Mayor’s business permit and employer’s registration at the Philippines Social Security System (SSS) , PhilHealth and Pag-Ibig Fund .

#11 Comply with DOLE. Register your business with the Department of Labor and Employment (DOLE) . This is mandatory for businesses with at least 10 employees.

#12 Get your secondary business license. Get a secondary business license if your business is required to do so. For example, if your business is about manufacturing food, you have to secure a Food and Drug Administration (FDA) registration.

#13 Join associations. Join industry-related associations to get benefits, such as technical and marketing support from the association. You will also learn many important things from its members.

#14 Get a Facebook Page for your small business. Creating a Facebook business page is free. So grab it! With a Facebook page, you can create and run affordable advertising to increase your followers, engagements, brand awareness, customers and sales.

#15 Invest in a company website. With a budget of P20,000 or less, your company can already hire a web developer to build a professional and powerful website for your business. A website is vital to implementing your online marketing campaigns. It’s also a great strategy to reach more customers and provide extra services to them. Contact us at Optixor, Inc. if you are interested to have a website for your business.

#16 Hire a salesperson. If you’re not good at persuading potential customers to buy products from you, consider hiring a business development manager or sales associate. A business start-up needs to generate sales as much as possible. Thus, find someone who can do that sales talk.

#17 Give importance to your inbound marketing. No matter how great your salespeople are if you do not provide real value, your business will not be built to last. Therefore, focus on the quality of your product and provide that extra services to make your customer happy and loyal to your business. Remember that the best marketers or salespeople you could have are your satisfied customers.

#18 Make your employees happy. Without a valuable product, your sales talk will falter. Without productive workers, you won’t have quality products. Hence, never ignore the welfare and development of your workers or employees. Being a small business is not an excuse to look down on any worker. Hence, make sure that every worker will become an integral part of your business so that as they grow, the whole business also grow, and vice versa.

#19 Get rid of the clutter. Simplicity, minimalism and good housekeeping will not only save your office space but will also save your money and time. Buy only the important things you need to save money and space. Invest time to organize your stuff to avoid losing more time in the future looking for things which are difficult to find because of your clutter.

#20 Be a survivor. Doing business in the first three years is tough. There are many good expectations that you will not surely meet. There are also unexpected predicaments that will come along your way. But all of them are just normal. They key to succeed in your business is to be a survivor. As time will pass, you will gain more skills, knowledge, wisdom and experiences which will make you a better entrepreneur. So keep inspiring and motivating yourself as you keep on inspiring your customers and workers.

I hope you get some useful insights on the random tips I’ve given above. If you have questions and comments, feel free to share them on the comments below.

Victorino Q. Abrugar is a marketing strategist and business consultant from Tacloban City, Philippines. Vic has been in the online marketing industry for more than 7 years, practicing problogging, web development, content marketing, SEO, social media marketing, and consulting.

May 21, 2019 at 8:34 am

The content is very informative. Thank you for sharing these tips in running a small business.

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How to Start a Business in the Philippines: Easy Tips from DTI

Running a business is a great way to supplement your income , helping you to generate extra cash. It’s a better option compared to running a side hustle each month. It also helps you earn more, giving you security that most jobs can’t exactly provide. 

Also Read:  Business Ideas for Filipinos to Consider in 2022

In the Philippines, in particular, businesses are looking up, all thanks to the growing economy brought about by increasing urbanization, growing middle-income class, increasing awareness of wealth building benefits, and booming young population. Plus, the developing information and industrial technologies and the current social conditions are making it the era of Internet-based industries — one that the current generation of Internet babies knows very well. 

Table of Contents

Why put up a business in the Philippines?

Aside from the rich natural resources and diverse and dynamic culture, there are many reasons why the Philippines is becoming such an attractive place to start a business venture, both for Filipinos and foreigners. 

Here are some of them:

Strategic Location

The country is located at the very heart of Asia, at the crossroad of all the major capitals. It stands as the ideal gateway and critical entry point for eastern and western traders, making it an ideal location to put a business. Even in times of war, the strategic location of the Philippines is of great importance, which is good for its fast-growing trade and commerce.

Strong and High-Quality Manpower Resources

Filipinos have been known for its workforce. The Philippines not only have the highest literacy rate in the region, it’s also the world’s largest English-speaking nation, housing an entire population of fluent English speakers. These and more makes the Philippines a good place to do business in the region.

Openness to New Opportunities

With its history of colonization, Filipinos are well-trained to accept changes. They are also short-oriented and resilient in that they accept whatever fate throws at them, sometimes even with smiles and songs.

  Filipinos are Confident Consumers

Work hard and play hard is a motto that Filipinos live by. They aren’t the richest consumers, but they are among the biggest and most confident spenders in the region. They like spending money on many things like new clothes, vacations, investments and home improvements. A survey conducted by Nielsen showed that the Philippines as the top ranked spenders globally, outranking even the United States.

Developing Infrastructure

The Philippines has well-developed communication, transportation, and business and infrastructure links, along with improved facilities and liberal shipping and aviation that makes it easier to do inter-island business transactions.

Unlimited Business Opportunities

The Philippines has designated special and economic zones in various areas. These are areas for business ventures. Within these areas, they offer special privilege for investors and business owners to create a competitive space that offers a good opportunity for new businesses to grow and flourish.

How to start a small business in the Philippines

There is a lot to gain and not much to lose when starting a business in the Philippines, but how does one really get started? The Department of Trade and Industry (DTI) listed a few things to consider, along with the steps to putting up a new business.

So, if you think you’re ready to start a business, here’s what you should consider first before you actually do, according to DTI:

Look within and think about whether you can do it.

According to DTI, it is a must to ask yourself: Do you have what it takes? 

Starting a business takes dedication and effort so it is important to know whether you have the staying power. Otherwise, don’t even think about starting a business. You’ll most likely end up losing money if you do.

Look Outside: What’s holding you back?

Knowing why you haven’t started a business yet is equally important. But, more than the hindrance, you also need to see everything that could help you when you do put up a business. That way, you’ll have a better understanding of the business landscape of your venture. 

Decide on your product or service line and the type of business you want.

Now that you know your strengths and weaknesses, it’s time to find the best product or service line that you want to sell. To do that, we listed the top industries you’d want to consider, if you haven’t decided on it yet.

Here are the best industries to start a business venture in:

Travel and Tourism

As a nation with world-renowned beauty and lavish tourist destinations, the Philippines has all the natural  resources for a business in this industry. Plus, the beautiful destinations ensure that there will always be a huge demand for services, packages, offers, facilities, accommodations, trips, transport, food and beverage and other travel-related services.

Agriculture

As a tropical country with massive agricultural land, the fertile soil of the Philippines offers various fresh produce and livestock that can be exported, making it a great industry for a business venture.  

Manufacturing

Given the country’s huge manpower and low labor cost, the Philippines is a good place for a manufacturing business. This includes creation of products related to food and beverage, petroleum, transport, and industrial equipment, textile and others.

IT, BPO, and Business Services

With the Philippine government exerting efforts to develop the country’s Information Technology (IT) sector, the Business Process Outsourcing (BPO) companies continue to flourish. 

Real Estate

Real estate remains to be a flourishing and sustainable industry, as the population keeps increasing. The number of home seekers and travelers ensure that there will always be a demand for property spaces and offices. 

Despite the currency inflation rate and other economic downturn brought by various conditions, overall spending and consumption remains high in the country. Online shopping and delivery are also on the upward trend, as many of the Filipino shoppers turn to their smartphones for their shopping fix.  

Like retail, the healthcare industry is also on the rise as the current generation switches to a healthier lifestyle, making it a good industry to venture into.  

Subcontracting industries

You may also start a subcontracting business, providing services for bigger companies or offering specialized services to smaller ones.

Some of the other factors you can look into when choosing the type of business or product line you’d want to venture into include your interest, its suitableness to your skills, hobbies, or work experience, and your capabilities. 

Just remember, regardless of the industry or business type that you decide to venture into, the best way to get your business off the ground is to:

• Make sure that you are offering an innovative and unique product or service that is not yet in the market, but can satisfy the needs or provide a solution for specific problems of your target customers.
• Benchmark successful businesses. Do not forget to look at what successful businesses do and create something better. 

Write your business plan.

Like any normal venture, you’d want to know everything about selling whatever goods or services you intend to market, hence, you’d want a clear business plan.

If you’re writing your business plan, make sure you include the following parts:

• Marketing Aspects 
• Technical (Production) Aspects 
• Organizational Aspects 
• Financial Aspects

Raise capital.

Naturally, starting a business requires capital. That said, you need to ensure you’d have enough capital before you get on with it. If you don’t, then it’s time to raise capital. After all, you’ll need money to cover for equipment, tools, supplies, and materials, and ongoing costs and it is ideal to have a budget that would be enough for six to 12 months, at least.

To ensure that you are raising enough capital, you may:

• One-time startup costs: Market research, branding, licenses and permits, initial inventory, grand opening event, etc.
• Ongoing costs: Rent, marketing, employee salaries, taxes, etc.
• Allocate some of your capital to the backup funds. This is because startup businesses generally take time to get off and you need to make sure that you can sustain your business despite the loss.

Seek other sources of assistance, if necessary.

If you need assistance, then there are agencies that offer free ones. DTI, for one, has projects that are geared towards helping budding entrepreneurs with their business ventures.

Choose your business location.

Location is an important factor in any business so it is imperative to consider where you will set up your business. A good location may ensure success and a poorly chosen area for your business operation may just send you into a downward spiral, causing wastage of monetary capital.

Register your business.

Registering your business is an important process when setting up one. To get started, simply follow the steps listed below:

Choose a name for your business.

Business branding starts with naming. That said, it is important to choose a business name that not only describes what you offer, but is also easy to recall for your consumers. Make sure to shortlist at least three business names in case your first choice is not available.

Verify if it’s still available for you to use.

Once you have selected at least three potential business names for your business, verify if it’s trademarked or if another business is already using it. 

If it’s still available, register your business name.

Via DTI, for sole proprietor (offline):

• Go to the Negosyo Center in the city/municipality/province where the business is located.
• Accomplish the unified application form for Business Name Registration.
• Once done, submit the documents to the Receptionist/Information Officer for business name.
• The receptionist/information officer will turn over the documents to the Business Name Registration Section (BNRS) of the DTI Office for appropriate same-day processing and will request the client to refer to said section and wait for further instructions. 

*For Negosyo Centers equipped with Philippine Business Registry (PBR) kiosks, the receptionist/information officer will refer the application to an in-house Business Counsellor who shall provide the assistance to register through the PBR System.

      5. The information officer releases the approved registration/permit/license to the client’s representative.

Via DTI, for sole proprietor (online):

If you prefer to go online, you may check about registering your business at the DTI website. Simply visit http://dti.gov.ph.

Via CDA, for cooperatives:

If you are registering a cooperative or if you have other related concerns, then you’d want to visit the Cooperative Development Authority. You may also visit their website at http://cda.gov.ph.

Via SEC, for partnerships and corporation:

For registration of partnerships and corporations, then you’d want to go to the Securities and Exchange Commission (SEC). Or, you may visit their website at http://www.sec.gov.ph or https://crs.sec.gov.ph/ for the online company registration system.

Create your brand identity.

Once you have a registered business name, you’d want to build up your brand so people can resonate with it. One way to do that is to breed familiarity and affinity. To do that, you’d want to decide on these elements that would form the very foundation of your brand identity.

As the face of your business, you must ensure that the logo you will use is easily recognizable, regardless if you’re using a logotype or a logomark.

Your word choice determines your brand personality, mood, and tone. Going full English signifies aspirational or premium values. Taglish, on the other hand, may mean that your business has a relaxed tone, while pure Tagalog may show that your brand is grounded and in touch with the common people.

Colors decide how good your visuals would be, as they convey feelings, emotions, and strengthen brand associations.

The typeface also helps determine the personality of your brand. Serif fonts like Garamond and Times New Roman may prove that your brand is formal, regal, or premium. Sans serif fonts, like Helvetica and Arial, are considered safe choices for businesses with straightforward offerings. Rounded and curly fonts, however, may mean that your business is chill, light, and fun.

Once you have decided on the elements of your brand identity, create a brand bible for your graphic designers to use when creating your promotional materials. A brand bible ensures that your branding elements look consistent across different materials.

Apply for Licenses and Permits

In the Philippines, even small-scale businesses need permits, on top of the registration certificate, to prove that they’re running a legitimate enterprise. This not only builds brand credibility, but it will also ensure that you don’t get in trouble with the law later on.

Here are the permits needed when starting a business in the Philippines:

Barangay clearance issued by the barangay hall

A Barangay Business Clearance is one of the permits that you need to secure when registering a new business in the Philippines. It’s also a requirement when renewing your expired Mayor’s Permit or Business License, changing a new business location, and changing a new business commercial name so it is in your best interest to secure one before you start operating your business. This certificate 

To do so, you will need the following:

• Latest Community Tax Certificate (Cedula)
• DTI Business Name Registration
• Barangay Business Permit Fee

Once you have all the required documents, then simply follow these steps:

• Go to the Barangay Hall or the Office of the Barangay Captain

Visit the Barangay Hall or Office of the Barangay Captain of the place where you plan to set up your business. 

• Pay your Business Clearance fee

Depending on the business type, the processing fees for the Barangay Business Clearance ranges from 200 to 1,000 pesos depending on the location of the business or the type of the city where your business is registered.

• Claim your Barangay Business Permit

Wait for your barangay business permit to be released. You will be asked to sign a confirmation that you received your certificate and the date when you claimed it.

Documentation and processing of clearance will only take a while, and it will be finished after only a few minutes, depending on the number of transactions in your local barangay when you got there.

Mayor’s permit/Business permit issued by the municipal or city hall

The Mayor’s permit is one of the major requirements of the Philippine government when registering a business. The permit is issued in the municipality/city or local government unit (LGU) of the company or individual’s principal place of business.

To secure a Mayor’s permit, you will have to visit the nearest Municipal’s office or local government unit (LGU) where your business is located.

Tax Identification Number and BIR registration documents

As a business entity, you will be subjected to assessment and collection of all national internal revenue taxes, fees and charges by the Bureau of Internal Revenue’s (BIR). For these purposes and to avoid forfeitures, penalties and fines. When you register, the BIR will furnish your business with its own tax identification number (TIN) and the authority to print receipt, invoices, and others. 

For more information, you may reach out to [email protected] or you may visit their website at www.bir.gov.ph.

 SSS, PhilHealth, and Pag-IBIG registration as an employer and for new employees

As a business owner, you will be hiring employees to help support the operation of your business. That said, you will also need to register as an employer with the Social Security System (SSS) , Philippine Health Insurance Corporation (PhilHealth) , and Home Development Mutual Fund (Pag-IBIG Fund) . These are mandatory benefits for all employees and employers who do not pay for these benefits may end up getting fined later on.

 Special permits 

Depending on the nature of your business, you might need special permits to operate in the Philippines. A good example of such is the registration with the Food and Drug Administration (FDA) for food businesses and with the Bangko Sentral ng Pilipinas (BSP) for pawnshops, remittance centers, and other financial institutions.

Some of the other permits that may be required from you include:

• BMBE Registration

Any business involved in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services whose net value does not exceed 3 million is a Barangay Micro-Business Enterprise (BMBE) according to the BMBEs Act of 2002. That said, they are entitled to certain government incentives like:

• exemption from the payment of income tax for income arising from the operation of the enterprise, 
• exemption from paying the minimum wage, 
• special credit window of government financing institutions that will service the needs of BMBEs such as technology and marketing assistance.

To register an enterprise as a BMBE, please prepare the following documentary requirements:

• Certificate of Business Name Registration from the Department of Trade and Industry (DTI), or
• Certificate of Registration from the Securities and Exchange Commission (SEC), or
• Certificate of Registration from the Cooperative Development Authority (CDA)
• Accomplished application form for BMBE Certificate of Authority

If requirements are completed, please follow the procedure for registration of BMBE Certificate of Authority:

• Go to the nearest Negosyo Center in your province, city, or municipality;
• Submit the documentary requirements for the DTI, through the Negosyo Center, to evaluate the application for purposes of determining the eligibility and qualification as a BMBE;
• If the applicant is eligible and qualified, the DTI shall issue the BMBE Certificate of Authority within fifteen (15) working days from receipt of application with complete requirements.

The registration and issuance of BMBE Certificate of Authority is free. However, the DTI Negosyo Center may request additional requirements like ID-sized photo, government-issued valid I.D., Mayor’s Permit, etc.)

If you are venturing into the food business, you will need a license to operate (LTO) and certificate of product registration (CPR) from the Food and Drug Administration (FDA). To learn more about it, you may visit their website at http://www.fda.gov.ph

For support related to packaging technology, design, labelling, testing and other packaging-related concerns, you may reach out to the Packaging Technology Division of Industrial Technology Development Institute, of the Department of Science and Technology (DOST).  You may visit their website at http://www.itdi.dost.gov.ph

If your business will require you to apply for an Environmental Compliance Certificate and the Certificate of Non-Coverage (CNC), then the office you need to reach out to is the Environmental Management Bureau of the Department of Environment and Natural Resources (DENR). They can be contacted through their website, http://www.emb.gov.ph

Hire/train personnel .

Lastly, once you have all the required licenses and permits you need to operate your business, it’s time to start training your staff and imbue in them the core values that you want your business to have. Start a learning and improving process with the team so you can develop a habit of productivity and creativity in the workplace. 

Market your business.

The last step to ensure that you are not setting out for a losing venture is to have an operation and marketing strategy in place. To ensure that your business will get off the ground, you will have to implement your marketing strategies, utilize all available and relevant resources, and make sure you are reaching out to the right target. You don’t want to waste your efforts and money so make sure you pay extra attention to this last step. 

For more help, you may check out this guide to the  10 Tips to Turn Small Business ideas Into a Profitable Venture .

So, do you think you’re ready to start a business?

Starting a business can be a scary venture, however, it is also a good step towards securing your future. It’s normal to get scared when trying out something new, but make sure that you are prepared enough so you don’t set yourself up for a sure loss.

With this guide, we hope we were able to help you prepare, so, go ahead, be scared and set up that business. To borrow a few words from Rhys Ifans, “If it is not scary, it is not worth doing.”  

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Doing business in the Philippines Report

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Introduction

There are some important issues that one needs to consider before embarking on a mission to do business in a given country. Such issues as social, economic, and political environment of a country would be worth of consideration by a prospective investor.

The current paper intends to explore the possibility of doing business in the Philippines. It will emphasize on the social, economic, and political situation in the Philippines.

In addition, the culture, language, customs and protocol of the Filipinos shall be addressed, as well as their business etiquette, business culture, negotiation techniques, and meeting protocols.

The Filipino culture is heavily influenced by forces outside the Asian region including Mexico, and the United States. The influence of Islam in the Philippines has been somewhat limited, unlike such other Asian countries as Indonesia and Malaysia (CIA-The World Factbook 2011).

Filipinos have embraced many western values under the auspices of the Roman Catholic Church that has a large following in the country. The Filipinos have a strong sense of dignity and personal pride.

Business Structures

Most companies in the Philippines are family controlled. Business structure is largely hierarchical with the owner-managers possessing a lot of power. However, western business practices are slowly being embraced (Communicaid 2009).

Having good contacts with the top management is crucial as they are responsible for making most decisions. When making initial business contacts with Filipino organizations, only the senior people in your organization should meet with senior representatives from the Filipino organizations as sending lower ranking officials would be considered an insult.

Management style

The Filipino culture is characterized by paternalistic management style due to the strongly hierarchical culture. On the other hand, it is important for managers to become acquainted with some of the strong Filipino attributes that underline personal relationships in the Philippines.

To start with, the Filipinos are wary of being embarrassed for their actions, or for failing to live up to society’s expectations (Communicaid 2009). To criticize an individual in public is frowned upon, as it amounts to an insult.

Filipinos are not very particular about time, and most business meetings start late. As such, western business representatives can get frustrated with the slow progress of meetings and negotiations. Small talk is common before the start of a business meeting and it is during this time that the relations-building process between the two parties is established (Barcelon 2011).

Filipinos are nonconfrontational because they strongly believe in getting along with others smoothly. They frown on any form of negative talk. Moreover, Filipinos rarely contradict other people openly.

Therefore, a meeting might appear to be moving smoothly even when there is no apparent progress. When establishing new business contacts, gifts are often welcome as they are a sign that negotiations have been concluded satisfactorily.

Filipinos strongly believe in team spirit. People make sacrifices for their fellow team-members and those who appear to criticize team-members are severely dealt with (Communicaid 2009).

It is important to treat every team member with respect and dignity because in case you insult one of the team members, the other team members could feel insulted as well.

Communication style

English is the business language in the Philippines and as such, communication is not a problem for most western business people. Because the Filipino communication style is heavily influenced by the country’s Asian roots, western business people are therefore advised to desist from using coded and diplomatic language as this could complicate communication (Nolan 1996).

Like most other Asian countries, Filipinos find it very hard to say ‘no’ as this could be interpreted as being unfriendly or confrontational. Overseas visitors should also be wary of the Filipino body language.

For example, the Filipino may smile as a way of hiding annoyance, embarrassment, or disagreement, and the western business people can take this as a sign of pleasure or agreement. Once an agreement has been reached, it is always advisable to wait for requests for information or a contract before proceeding.

Women in business

Although the Filipino culture acknowledges the role of women in business circles, they should not be seen to dominate their male counterparts. Gender bias in the Philippines is almost nonexistent.

Personal grooming is important in the Philippines, both at business and social gatherings. Filipinos have a tendency to judge somebody based on their appearance. During business meetings, it is always advisable for men to dress in a suit and tie, while women are expected to dress modestly (Taglaw 2007).

Formally evening wear is also acceptable at most of the good restaurants in manila, but one is always advised to check the dressing code well in advance

• Many Filipino organizations are hierarchically structured.
• The Filipinos strongly believe in saving face.
• It is common for business meetings in the Philippines to start late.
• Filipinos are nonconfrontational, but do not interpret their politeness as a sign of agreement.
• Foreign business representatives need the assistance of local to help them wade through the bureaucracy hurdle.
• Gifts are acceptable in business meetings as they signify agreement in negotiations.

Cultural, social, and economic climate

The Filipino culture is a blend of western and eastern cultures, with a strong influence by the Malay culture. Economically, the country’s nominal gross domestic product was estimated at $ 216.1 billion in 2011 (Barcelon 2011).

Poverty influences the country’s social climate. For example, nearly 30 % of the population lives below the poverty line.

Successful entertaining

Business entertainment is common in the Philippines. The arrangement for business lunches and dinners takes place over the phone and it is customary for the inviting party to pay (Torres 2006).

The informal atmosphere of business entertainment enables everybody to relax. Dress code differs widely, and tipping is also highly anticipated.

Facts and figures

The Philippines consists of more than 7,000 islands on the coastline of Southeast Asia. The Philippines has a population over100 million, most of who lie in the lower middle income category. In addition, the Philippines has a land area of approximately 298,171 sq km, and a life expectancy of 71.66 years (CIA-The World Factbook 2011).

Manila, the capital city, has a population of 11 million, and is also the largest city in the country. Other large cities in the Philippines include Cebu City, Davao, and Zamboanga. The country’s monetary unit is the Peso.

Doing business in the Philippines calls for an understanding of the social, economic and political climate in the country. The Filipino culture is characterized by paternalistic management with a strong hierarchical culture.

Many of the leading companies in the Philippines are family controlled. Business meetings start late, and the Filipinos strongly believe in team spirit. English is the business language in the Philippines, while gender bias in the Philippines is also almost nonexistent.

Reference List

Barcelon E. 2011, Doing business in the Philippines . Web.

CIA-The World Factbook 2011, Philippines. Web.

Communicaid 2009 , Doing Business in the Philippines | Philippine Social and Business Culture: A Philippine Overview. Web.

Nolan J. 1996, Philippines business: the portable encyclopedia for doing business with the Philippines , World Trade Press, California, USA.

Taglaw 2007, Doing business in the Philippines. Web.

Torres Q. 2006, Doing business in the Philippines. Web.

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IvyPanda. (2019, April 6). Doing business in the Philippines. https://ivypanda.com/essays/doing-business-in-the-philippines/

"Doing business in the Philippines." IvyPanda , 6 Apr. 2019, ivypanda.com/essays/doing-business-in-the-philippines/.

IvyPanda . (2019) 'Doing business in the Philippines'. 6 April.

IvyPanda . 2019. "Doing business in the Philippines." April 6, 2019. https://ivypanda.com/essays/doing-business-in-the-philippines/.

1. IvyPanda . "Doing business in the Philippines." April 6, 2019. https://ivypanda.com/essays/doing-business-in-the-philippines/.

Bibliography

IvyPanda . "Doing business in the Philippines." April 6, 2019. https://ivypanda.com/essays/doing-business-in-the-philippines/.

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Ease of doing business in the Philippines

H ow difficult is it to do business in the Philippines in comparison to other economies? One way to answer this complex question is to look at the annual ease of doing business ranking issued by the World Bank in its Doing Business 2020 report.

This index ranks almost all of the world’s economies according to how easy it is to do business. It is based on a study of laws, regulations and practices in a given country, taking into account the following factors: starting a business; dealing with construction permits; getting electricity; registering property; getting credit; protecting minority investors, paying taxes, trading across borders; enforcing contracts; and resolving insolvency.

In other words, the rankings are used as an indicator of the simplicity of business laws and regulations, and the level of protection for businessmen and their property rights. As such, the rankings are often cited by legislators as a catalyst for the issuance of new laws and regulations to facilitate ease of doing business.

In the Doing Business 2020 report, the Philippines ranked 95 th out of 190 economies. Although this ranking was a significant improvement from last year’s performance, the Philippines still ranks last among the founding members of the Association of Southeast Asian Nations. Singapore is ranked second, Malaysia 12 th , Thailand 21 st , and Indonesia is in 73 rd place.

According to the World Bank, it takes an average of 13 procedures to start a business, nine procedures to register property, and 22 procedures to build a physical establishment in the Philippines. Once the business has been set up, the company makes 13 annual tax payments. If a contract is broken and a business needs to resolve a dispute with its customers or suppliers, it takes an average of 962 days to resolve an issue through our courts.

These inefficiencies have long been sought to be corrected by different congresses. Fortunately, the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 was signed and became effective on 17 June 2018. The Implementing Rules and Regulations (IRR) were passed on 17 July 2019.

The IRR seeks to provide simple and straightforward regulations for entrepreneurs, micro, small and medium-sized businesses and ordinary citizens:

• All government agencies and offices in the Executive Department, including local government units (LGUs) and government-owned or controlled corporations that issue licences, clearances, or permits (LCPs) to business entities, are covered.
• Each agency/office must submit a Citizen’s Charter, which outlines a comprehensive checklist of requirements, step-by-step procedures, and a schedule of fees.
• There are prescribed processing times for LCPs – a maximum of three working days for simple applications, seven working days for complex applications, and 20 working days for applications that require technical evaluations and other conditions, subject to qualifications.
• Each agency/LGU must adopt a zero-contact policy where interactions between applicants and government employees are limited. Electronic submission of requests and requirements is preferred.
• Upon lapse of the processing time, the submission of complete documents and payment of all fees, the LCP is automatically deemed approved or extended.
• The IRR prescribes penalties for: (1) refusal to accept applications/requests and to act on them despite complete submission of documents and payment of fees; (2) failure to give written notice of disapproval; (3) imposition of additional irrelevant requirements or costs; (4) failure to render service during regular working hours and within prescribed processing times; (5) failure or refusal to issue receipts; and (6) colluding with fixers. The penalties range from administrative liability and six months suspension to criminal liability, dismissal and perpetual disqualification to hold public office, imprisonment for up to six years and a fine of not more than US$40,000.
• A Unified Business Application Form will be used in processing new applications and renewals. This consolidates all the information for an application such as local taxes and clearances, sanitary permits, zoning clearances and the like. In the same vein, there are streamlined procedures for securing fire safety clearances.
• The IRR establishes a National Policy on Anti-Red Tape and Ease of Doing Business. This refers to a comprehensive business registration and regulatory management policy to improve competitiveness and ease bureaucratic and regulatory burdens on businessmen. It also adopts a whole-of-government approach, where agencies focus on providing integrated and streamlined public services.
• Finally, the IRR creates an Anti-Red Tape Authority and Advisory Council. Essentially, these bodies implement the IRR and craft policies on business registration and regulatory management.

Any significant improvement in the ease of doing business in the Philippines requires a whole-of-country effort. The efforts by legislators, government agencies and private corporations are a welcome start to improving the business climate. Hopefully, these efforts will significantly reduce the entry barriers to businesses, which, ultimately, will lead to economic efficiencies for the benefit of the ordinary Filipino.

Paula P Plaza is an associate in the Litigation and Dispute Resolution Department of ACCRALAW Offices.

Contact details: Tel: +63 (2) 830-8000 Email: ppplaza@ accralaw .com

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How to Start a Samgyupsal Business in the Philippines

By Ameena Rey-Franc

How to Start a Samgyupsal Business in the Philippines :

Filipinos have undoubtedly fallen in love with the rich flavors of Korean barbecue. Whether you are an avid KDrama fan or not, chances are you have feasted your eyes on the delicious Korean food that has successfully penetrated the Philippine Market – samgyupsal or samgyeopsal. With various KBBQ restaurants getting swarmed by enthusiasts, it’s no wonder why many are wanting to start their own samgyupsal restaurant.

So in this guide, we’ll be sharing the steps on how to start a samgyupsal business in the Philippines, the pros and cons, a list of suppliers, and some helpful tips when starting out this popular Korean barbecue restaurant.

What is Samgyupsal/Samgyeopsal?

Samgyupsal or samgyeopsal  is a popular dish from Korea that consists of thick slices of meat. Samgyeopsal actually translates to grilled pork belly. Meat that has been grilled is usually eaten with grilled onions or garlic and wrapped in fresh lettuce or perilla leaves. Side sauces include ssamjang (soy bean paste and chili gochujang) and gireumjang (sesame oil, salt, and pepper).

Filipinos’ love for meat is another reason why this eat-all-you-can Korean barbecue restaurant is very popular. Plus, offering it at a reasonably low price and in unlimited servings adds to its overall appeal.

According to Course Hero , when Filipino diners were asked about their current favorite choice of food, one recurring answer was samgyeopsal, sometimes shortened to “samgyup.” Thus, samgyupsal continues to be part of the top lists of local food trends in the Philippines for the long term.

In 2018, samgyupsal in the Philippines became very popular as many restaurants that have been established offered this eat-all-you-can concept. With prices that usually range between PHP 500 to PHP 2,000 per person coupled with good interior designs, it is no surprise why many Filipinos are enjoying it.

1. Conduct a market research

One thing you should know is that most Filipinos prefer to consume ready-to-eat meals because of their time-strapped lifestyles and fast-paced world. Because of such hectic schedules, they tend to eat “fast foods” that satisfy their cravings and hunger pangs at an affordable price. And since Samgyupsal became very popular and is served with many different side dishes at cheap prices, Filipinos are loving it up until this day.

For starters, here are some elements at play that will influence your business’ success:

• Who are your customers? 

Do most people in your area know what samgyupsal is? If not, do you think they’d be interested in trying out food from a foreign culture?

• What is the market like? 

Is there an existing demand for samgyupsal-lovers? Are you located near corporate offices or well-known fast food joints? Will a home delivery through various shipping couriers work? 

• Who are your competitors? 

Are there nearby samgyupsal restaurants near your chosen area? How much do they charge per person? What are their existing promos or effective marketing strategies to get customers flocking to their diners?

Knowing your target market will remove the fog of confusion if a samgyupsal business will be profitable in your chosen area and will keep you from blindly pursuing an entrepreneurial venture.

2. Evaluate Your Capital

The next step on how to start a samgyupsal business in the Philippines is evaluating how much you’ll need. Depending on the outcome of your market research, you may either need to stretch your budget or spend as little yet to still earn competitively.

As a rough estimate, you may need to shell out around Php 200,000.00 which includes the ingredients (meat products and side dishes), basic kitchen utensils, grill pan and stove, marketing and advertisements, and allowance for experiments and testing the business plan. This amount is applicable if you choose a samgyupsal home delivery business plan similar to Samgyupsal sa Bahay . Else, you would still need to add rental costs and paying fees for obtaining the  required documents and business permits .

3. Identify the things you need

Here are some of the ingredients and equipment you’ll be needing but are not limited to the following:

• Pork (Php 80 to Php 250; 400g to 500g)
• Chicken (Php 80 to Php 250; 400g to 500g)
• Beef (Php 80 to Php 250; 400g to 500g)
• Braised Tofu
• Potato marbles
• Grill pan (starts at Php 200, depending on size)
• Butane (Php 30 to Php 65 per bottle)
• Meat slicer (can range from Php 12k to Php 50k depending on the size)

There are also many different side dishes in line, some of these are:

• Oi Muchim (Spicy Cucumber Salad)
• Hobak Bokkeum (Stir-fried Zucchini)
• Gaji Namul (Steamed Eggplants)
• Sukju Namul (Seasoned Bean Sprouts)
• Oi Bokkeum (Stir-fried Cucumbers)
• Watercress Namul
• Mu Saengchae (Spicy Radish Salad)
• Gamja Jorim (Braised Potatoes).

Of course, you need to learn how to price your samgyupsal effectively. To keep customers coming back, your product should be budget-friendly for your target market while still making a profit for you and your business. If you’re in need of some good food pricing strategies, here’s our guide on How to Compute & Price Food Products (w/ example) Philippines .

Samgyupsal suppliers in the Philippines

• Jia’s Samgyupsal Meat Supplier: Known as a one-stop-shop for Korean food cravings, they offer samgyupsal meats (plain or marinated), side dishes, sauces, dips, grill pan, stove, butane, as well as ramen and noodles.
• AB FROZEN FOOD TRADING : Located in Makati, their products range from different cuts and quantities of flavored beef, pork, and bulgogi, to all sorts of in-demand Korean products such as ramen, seaweed, and soju.
• Samgyupsal Direct Supplier : A Facebook group that welcomes all resellers and direct suppliers of Samgyupsal and Korean food. You can find sellers of butane and meat slicing machines here too.
• ALFA : As a member of several meat organizations in the Philippines, ALFA offers a variety of samgyupsal pork as well as belly fat trimmings.

Advantages and Disadvantages of starting a Samgyupsal Business in the Philippines

• Filipinos’ love for pork, beef, and chicken is one reason why thIs business is very popular and offering it as an eat-all-you-can at a reasonably low price will make them come back again and again.
• You can save money from, among other things, by not having to hire a complete waitstaff since you will let customers choose and cook their own food.
• Can be in a home delivery service where customers will buy the ingredients from you and will rent the pan grill and stove.
• With the right marketing strategies, negotiations with suppliers and inventory handling, this type of business can yield a high profit. For tested and proven strategies, check out our list of 20 Ways to Promote & Market Your Business in the Philippines
• Ingredients are those that easily expire. Handling the inventory wisely is a must to avoid wasting stocks.
• Can be easily copied and has similarities with other competitors
• Samgyupsal can be one of those trends that might die down after a few months or years if you don’t diversify
• The series of samgyupsal franchises give you more rivals on getting customers to your store.

Tips When Starting a Samgyupsal Business in the Philippines

Location is a crucial part of business planning, but with the Philippine market slowly becoming saturated with Korean barbeque restaurants, choosing the right location to establish your store is important. It’s recommended to do a SWOT analysis too when choosing your targeted area.

Ventilation

Install as many ventilation devices as you deem necessary. Air conditioners and electric fans are needed to cool down the restaurant specifically during peak hours when all the grilling pans are being used.

You need to find a supplier that will provide affordable products without sacrificing quality as offering low prices to your customers is the main competition with similar businesses. Also, make sure to have more than one supplier handy so just in case your primary supplier fails to comply with your order, you have the second supplier as a backup.

Side   dishes

While pork and beef are the highlights of Korean barbeque restaurants, the side dishes are also important. Filipinos want to get their money’s worth, and if they see that they will get a heaping serving of meat and sumptuous side dishes, they will naturally flock to your place. You may want to conduct a survey, whether online or face-to-face, about the top five side dishes your target market wants and initially, have those in your menu. Once your business grows, you may opt to offer more varieties of side dishes.

Come up with ways on how to stand out. As one Reddit commenter shares, perhaps you would want to use charcoal instead or opt for home delivery of both the meat products and the equipment so in case another pandemic lockdown arises, your business can run remotely.

As a rule of thumb, the cost of ingredients should not exceed 30% of your selling price. For example, if your selling price is Php 100.00, the cost of ingredients should not exceed Php 30.00.

• Related Post : How to Compute & Price Food Products (w/ example) Philippines

Cutting down on costs

Charging a fixed amount for leftovers is one strategy to keep costs low. This gives the customers the initiative to avoid food waste out of fear of paying more. Another way is by ordering ingredients, especially meats, in bulk to help defray costs.

As Cyrus Cruz, strategist and restaurant consultant , shares, “ The two most important elements to consider when opening an all-you-can-eat restaurant are the capacity of the dining room and the number of possible seat turnovers per meal. For example, a table of four in a successful buffet restaurant must turn over at least two times per meal”

Is a Samgyupsal Business profitable in the Philippines?

Some have acknowledged that they have gotten their ROI in a matter of 3 months. Of course, while that is still a case-to-case basis, starting a samgyupsal business in the Philippines is not a super complicated one to operate as there are tons of suppliers and a booming market of samgyup enthusiasts.

With overwhelming long lines and a high demand from groups of people who want to have their much-needed Korean barbecue meal as much as they can, consider this ideal for the business: many will still choose samgyupsal when you ask them where they want to eat.

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Recognized as one of the Top Finance Blogs in the PH. Ameena Rey-Franc (founder of TTP) is a former Banker and BS Accountancy graduate turned Blogger, Keynote Speaker, and entrepreneur. Currently an RFP delegate, she is also the Author of a book about Financial Resilience and has held seminars for reputable companies like GrabFoodPH, Pru Life UK, VISA, JPMorgan Chase& Co., Paypal, Fundline, Moneymax, and many more. The Thrifty Pinay's mission is to empower women to LEARN, EARN, and be FINANCIALLY-INDEPENDENT no matter what life stage they are in.

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