Philippines BPO KPO Registration Incorporation

Philippines Business Process Outsourcing Registration Incorporation

Starting a Back Office, KPO, Business Process Outsourcing or Call Center in the Philippines requires that you register your operations with the SEC. Outsourcing is deemed an export business and can be one hundred percent (100%) foreign owned (Fully Foreign Owned Domestic Corporation). To qualify as an export oriented enterprise at least 70% of its products/services must be exported.

Philippines offers tax incentives for companies providing outsourcing services. The benefits of tax breaks are given to outsourcing business once their application for registration with either PEZA (Philippines Economic Zone Authority) or the BOI (Philippines Board of Investments) has been approved.
The Philippines is recognized as being the leading outsourcing destination for:

• Cartoon 3D Animation
• Call Center (Inbound, Outbound, Chat)
• Website Design and IT Development
• SEO Search Engine Optimization
• Legal Process Outsourcing
• KPO (Knowledge Process Outsourcing)
• BPO (Business Process Outsourcing)
• Architecture (Cad Cam)
• Computer Programming
• Data Entry
• Human Resources (HR)
• Financial & Accounting Outsourcing
• Medical Transcription
• Virtual Assistants

Filipinos are well educated and speak excellent English with minimal accent. By setting up an outsourcing company for others or your own back office operation in the Philippines you will benefit from a highly trainable workforce at salaries which will give you considerable savings.

Dayanan Business Consultancy is at your service to recommend the best corporate structure for your operations in the Philippines and assist with the registration of your company with the appropriate government authorities to avail of tax incentives.

Philippines Incorporation

Philippine Branch Office

Permis d’Opérer aux Philippines

Philippines Business Permits

Dès  l’obtention de votre Certificat d’Incorporation ou de votre Licence d’Opérer en tant que Succursale ou Bureau de Représentation aux Philippines émis par la SEC des Philippines, la compagnie doit s’enregistrer auprès du Bureau du Trésor Public (BIR), obtenir une Autorisation Barangay et le Permis du Maire.

1 – Bureau du Trésor Public (Bureau of Internal Revnue BIR)
Le BIR attribue à votre entreprise un Numéro d’Identification de Contribuable, l’autorisation d’imprimer des reçus officiels et d’enregistrer vos livres et programmes de comptes.

Documents nécessaires pour obtenir votre enregistrement au BIR:
a) Certificat d’Incorporation & Articles d’Incorporation de la SEC, Statuts/Articles de Partenariats
b) Enregistrement du nom commercial auprès de la DTI, si applicable
c) Permis du Maire
d) Contrat de franchise, si applicable
e) Carte d’emplacement de l’entreprise
f) Contrat de bail / Accord / Certificat
g) Formulaire 1903 du BIR (Formulaire de demande)
h) Formulaire 0605 du BIR (Paiement des droits d’enregistrement)
i) Formulaire 2000 du BIR (Paiement des timbres administratifs)

2 – Autorisation Barangay (Barangay Clearance)
Cette autorisation est obtenue du Barangay où votre compagnie est située.
Documents à présenter:
a) Photocopie du Certificat d’Incorporation & Articles d’Incorporation de la SEC, Statuts/Articles de Partenariats
b) Carte d’emplacement de l’entreprise
c) Contrat de bail / Accord / Certificat
d) Formulaire de demande d’Autorisation

3 – Permis du Maire ou Permis d’Affaires Municipal (Mayors’ Permit)
Autorisation d’emplacement
Les documents suivants sont nécessaires pour l’obtention de l’Autorisation d’emplacement:
a) Carte d’emplacement de l’entreprise
b) Autorisation Barangay
c) Contrat de bail / Accord / Certificat
d) Certificat d’Incorporation & Articles d’Incorporation de la SEC, Statuts/Articles de Partenariats
e) Certificat d’Occupation du Bâtiment/Unité
f) Formulaire de demande du Permis d’Exercer

Permis du Maire
Les documents suivants sont nécessaires pour l’obtention d’un permis d’exercer:
a) Certificat d’Incorporation & Articles d’Incorporation de la SEC, Statuts/Articles de Partenariats
b) Autorisation d’Emplacement
c) Contrat de bail / Accord / Certificat
d) Autorisation Barangay
e) Assurance Responsabilité Civile

La procédure et l’ordre peut varier d’une ville à l’autre.
Il sera nécessaire de se rendre au BIR, Barangay et à l’Hôtel de Ville plusieurs fois pour obtenir tous les permis et autorisations requis.

Un Barangay, aussi connu sous son ancien nom espagnol, le barrio, est la division administrative la plus petite aux Philippines et est le terme philippine pour un village ou quartier. Barangays sont encore subdivisé en secteurs plus petits appelés Puroks (une Zone en français). Un sitio est une enclave territoriale à l’intérieur d’un Barangay, particulièrement dans les zones rurales. Les municipalités et les villes sont composés de Barangays. Souvent Barangay est abrégé comme “Brgy”. Ou “Bgy”. Au 31 décembre 2006, on comptait un total de 41,995 Barangays  dans l’ensemble des Philippines.

Business Culture of the Philippines

How to do Business in The Philippines

In the Philippines it is better to deal with people face to face in an agreeable environment.
For Western businessmen time is money and they want to get things done fast, on the other hand Filipinos speak about friends and family, share a few jokes and chitchat a bit before getting down to business. Filipino business culture is about making friends and creating personal relations. Doing business in the Philippines is a blend of the Eastern and Western. Breakfast meetings are popular.

Get the Assistance of a Local Businessman to Move Fast

It is best to get an intermediary who already knows the persons you would like to meet to set your appointments and make an introduction for you. This is especially true in government offices. Mid-morning and afternoon meetings are the preference and always confirm your meeting the day before. Be flexible, on meeting times if a meeting is scheduled for 9am don’t expect everyone to be there before 9:20 or later.

Once everyone has introduced themselves and small talk are over, the meeting will concentrate on the business agenda. There is a high probably that the first meeting will not give any specific results, though if there is an interest in your business proposal a second meeting will be set up. Contracts require more time to be finalized than in the west.

Philippines Business Etiquette Not Fully Eastern or Not Western

Businessmen in the Philippines tend to keep away from direct confrontation. It is essential that you never cause a potential Filipino business partner “loss of face. In a business conversation a “yes” can mean many things depending on its delivery. A polite yes with a smile may mean no this is a way to avoid confrontation.

When addressing someone always use their titles: Attorney, Doctor, Director, Secretary, Under Secretary, General.

It is usual to exchange business cards in the Philippines and done quite informally compared to most other Asian cultures. When a Filipino contact gives you a personal mobile or home phone number which is not on his business card, this is typically a good sign that he would like you to give him a call and wants to further the relationship.

Philippine Bureaucracy and Red Tape

Foreign businessmen should avoid dealing personally if possible with the local bureaucracy. Have a competent member of the staff of your Philippine registered company or a business consultant navigate though the maze of permits for you, make sure he is skilled at smiling and handing out small tokens of appreciation to ensure that your business dealings do not suffer delays.

English in Business

English is the official business language, so most foreign businessmen will not find it difficult to strike up a conversation. Almost all correspondence, contracts, and other documents are written in English. Among Filipinos, however, it is common to hear “Taglish” (a combination of Tagalog, a regional dialect from which the Filipino language is largely based, and English, or shifting back and forth between the two languages) during informal conversations. Body language and hand gestures (e.g., a raised eyebrow, a faint smile, a scratch in the head) are also integral to how Filipinos express themselves. Texting, or sending short messages through mobile phones, has now become a choice medium.

Representative Office Registration

Philippines Representative Office

The process for obtaining a license to transact business from the Philippines SEC to operate a Foreign Company Representative Office in the Philippines is similar to that of the Foreign Company Branch Office.

The required annual minimal inward remittance of funds for a Foreign Representative Office as working capital is US$ 30,000.00 as opposed to a one time minimum remittance of US$200,000.00 of a Foreign Branch Office as mandated by the SEC regulations. Every year the parent company must remit at least US$ 30,000.00 to cover operating expenses.

A Representative Office of a foreign corporation may not derive income from its operations in the Philippines. All of its operating costs must be covered by transfer of funds from the parent company.  Usual activities allowed are dealing with the clients of the parent company, dissemination of information, promotion of company products and quality control of products for export. It is forbidden to offer services to 3rd parties.

A Representative Office does not pay income taxes as none of its income is derived from the Philippines and is not qualified to apply for tax incentives with the BOI or PEZA authorities.

Dayanan Philippines Business Consultants will assist you with the setup and registration of your business with the relevant government agencies for a quick opening of a representative office in Philippines.

Philippines Representative Office Requirements

1 – Application Form

2 – Name Verification Slip (A name search will be done at the SEC to determine if the corporate name has any similarity with an existing corporation already registered with the SEC).

3 – Certified copy of the Board Resolution authorizing the establishment of an office in the Philippines; designating the resident agent to whom summons and other legal processes may be served in behalf of the foreign corporation; and stipulating that in the abscence of such or upon cessation of its business in the Philippines, any summons of legal process may be served to SEC as if the same is made upon the corporation at its home office

4 – Audited Financial Statements as of date not exceeding one year immediately prior to the filing of the application certified by an Independent Certified Public Accountant of the home country and authenticated before the Philippines Consulate/Embassy

5 – Certified copies of the Articles of Incorporation/By-laws/Partnership
with an English translation thereof if in a foreign language (not English)

6 – Proof of Inward Remittance such as a bank certificate of inward remittance in the amount of US$30,000.00

7 – Resident Agent’s acceptance of appointment 9not necessary if agent is the signatory in the application form)

All foreign documents must be authenticated by the Philippines Embassy/Consulate of the home country.

Once the SEC has issued a license to operate, the representative office is required to obtain Philippines local business permits and register with the Bureau of Internal Revenue. The representative office may now apply for work permits and visas for its foreign employees.

Business Consultant Philippines

Success in the Philippines depends on choosing the right business consultant to assist you in studying the Philippines market and developing the correct market entry strategy.

Starting and doing business in the Philippines requires information and knowledge.

DBC specializes in helping foreign companies acquire the specific facts they need to establish their office and find clients and partners. Introduce you to the necessary government agencies to obtain business permits and apply for tax incentives.

Business Plan Consultancy

Whether you are a local or international company DBC’s team of professional consultants has the required expertise to prepare comprehensive Feasibility Studies, Business Planning, Market Entry Strategy Reports, Market Research and Real Estate Development Market Studies.

Business Registration Consultant

DBC has assisted many local and foreign businesses, who wish to start doing business in the Philippines in completing their company registration requirements. Organizing all that is needed to have your Philippines business registration accomplished smoothly and rapidly with the required government agencies. Most companies will need to apply or register with the SEC, DTI, BIR, SSS, Pag-IBIG, and PhilHealth. DBC will explain the different company structures available in the Philippines and advise you on the advantages of each one.

Let DBC be your business consultant in the Philippines