Doing Business with Philippines

Exporting goods to the Philippines involves several key steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand the Philippines’ import regulations and product standards.

2. Identify Your Product’s HS Code

   • Determine the Harmonized System (HS) code to understand tariffs and regulations.

3. Prepare Documentation

   • Gather necessary export documents: commercial invoice, packing list, certificate of origin, and bill of lading.

4. Check Tariff and Non-Tariff Barriers

   • Verify any tariffs and ensure compliance with the Philippines’ non-tariff measures.

5. Select a Reliable Freight Forwarder

   • Choose a logistics provider experienced in shipping to the Philippines.

6. Comply with Labeling and Packaging Regulations

   • Ensure your products meet local labeling and packaging standards.

7. Arrange for Insurance

   • Secure insurance to cover potential shipping risks.

8. Submit Customs Declaration

   • Work with your freight forwarder to submit the necessary customs declaration.

9. Pay Applicable Duties and Taxes

   • Calculate and pay any required import duties and taxes.

10. Track and Confirm Delivery

    • Monitor the shipment to ensure it reaches the destination safely.

Key Contacts

• Philippine Bureau of Customs
  • Website: Bureau of Customs
• Department of Trade and Industry
  • Website: DTI Philippines

Importing goods into the Philippines involves several key steps. Here’s a detailed guide:

1. Research Import Regulations

   • Familiarize yourself with the Philippines’ import laws and product-specific regulations.

2. Obtain Necessary Licenses

   • Determine if your products require special import licenses or permits.

3. Classify Your Goods

   • Identify the Harmonized System (HS) code for your products to understand tariffs and duties.

4. Prepare Documentation

   • Gather required documents: commercial invoice, bill of lading, packing list, and certificate of origin.

5. Choose a Customs Broker

   • Hire a licensed customs broker to assist with the import process.

6. Comply with Labeling and Packaging Standards

   • Ensure products meet local labeling and packaging requirements.

7. Submit Customs Declaration

   • File a customs declaration with the Bureau of Customs.

8. Pay Duties and Taxes

   • Calculate and pay any applicable import duties and taxes.

9. Arrange for Transportation and Delivery

   • Coordinate with a logistics provider to transport goods to their final destination.

10. Track and Confirm Receipt

    • Monitor shipment progress and confirm delivery upon arrival.

Key Contacts

• Philippine Bureau of Customs
  • Website: Bureau of Customs
• Department of Trade and Industry
  • Website: DTI Philippines

Incorporating a company in the Philippines involves several key steps. Here’s a detailed guide:

1. Choose a Business Structure

   • Decide on the type of company, such as a Corporation or a Sole Proprietorship.

2. Reserve a Company Name

   • Reserve your company name with the Securities and Exchange Commission (SEC).

3. Prepare Incorporation Documents

   • Draft the Articles of Incorporation and By-Laws.

4. Deposit Initial Capital

   • Open a bank account and deposit the minimum required capital.

5. Register with the SEC

   • Submit the incorporation documents to the SEC for approval.

6. Obtain a Business Permit

   • Apply for a business permit from the local government unit where your business will operate.

7. Register with the Bureau of Internal Revenue (BIR)

   • Obtain a Tax Identification Number (TIN) and register for applicable taxes.

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

   • Ensure compliance with employee benefits and contributions.

Costs

• Name Reservation Fee: Approximately PHP 100
• SEC Registration Fee: Varies based on capital, generally around 1/5 of 1% of the authorized capital stock or a minimum of PHP 2,000
• Business Permit Fee: Varies by location

Key Contacts

• Securities and Exchange Commission (SEC)
  • Website: SEC Philippines
• Bureau of Internal Revenue (BIR)
  • Website: BIR

Setting up a manufacturing plant in the Philippines involves several key steps. Here’s a detailed guide:

1. Conduct a Feasibility Study

   • Analyze market demand, location, and resource availability.

2. Choose a Business Structure

   • Decide on the type of business entity, such as a Corporation or Partnership.

3. Register the Company

   • Register your business with the Securities and Exchange Commission (SEC).

4. Secure Financing

   • Arrange funding through loans or investors.

5. Select a Location

   • Choose an industrial area with access to infrastructure and resources.

6. Obtain Necessary Permits and Licenses

   • Apply for construction permits, environmental clearances, and industry-specific licenses.

7. Design and Construct the Facility

   • Hire architects and contractors to design and build the plant.

8. Purchase and Install Equipment

   • Acquire machinery and ensure it meets safety and operational standards.

9. Hire and Train Employees

   • Recruit skilled workers and provide necessary training.

10. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.

Key Contacts

• Department of Trade and Industry (DTI)
  • Website: DTI Philippines
• Board of Investments (BOI)
  • Website: BOI Philippines
• Securities and Exchange Commission (SEC)
  • Website: SEC Philippines

Registering a trademark in the Philippines involves several steps. Here’s a detailed guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique by searching existing trademarks in the Intellectual Property Office of the Philippines (IPOPHL) database.

2. Prepare Your Application

   • Gather necessary details, including the trademark design and the list of goods/services it will cover.

3. Submit the Application

   • File your application online or at IPOPHL with the required forms and documents.

4. Application Examination

   • IPOPHL will examine the application for compliance and potential conflicts with existing trademarks.

5. Publication for Opposition

   • If approved, the trademark is published in the IPOPHL e-Gazette for a period during which others can oppose it.

6. Receive Registration Certificate

   • If no oppositions are filed, you receive the official trademark registration certificate.

Costs

• Application Fee: Approximately PHP 1,800 for small entities or PHP 3,600 for large entities (additional fees may apply for each class of goods/services)

Key Contacts

• Intellectual Property Office of the Philippines (IPOPHL)
  • Website: IPOPHL

Resolving commercial disputes in the Philippines involves several key steps. Here’s a detailed guide:

1. Consult Legal Counsel

   • Engage a lawyer experienced in Philippine commercial law for guidance.

2. Attempt Negotiation

   • Try to resolve the dispute amicably through direct negotiation with the other party.

3. Mediation

   • Consider mediation with a neutral third party to facilitate a resolution. Mediation can be sought through the Philippine Mediation Center.

4. Arbitration

   • Use arbitration for a binding resolution if both parties agree. The Philippines recognizes arbitration as an effective dispute resolution method.

5. Litigation

   • If other methods fail, file a lawsuit in the relevant Philippine court. Prepare for a formal legal process.

6. Enforcement of Judgments

   • Ensure the decision is enforced through relevant authorities.

Costs

• Legal Fees: Vary depending on the complexity and length of the dispute.
• Court Fees: Required for litigation and depend on the case specifics.

Key Contacts

• Philippine Judicial System
  • Website: Supreme Court of the Philippines
• Department of Justice
  • Website: DOJ Philippines

When considering business in the Philippines, it’s important to understand various factors:

Social and Cultural Factors

• Language: English and Filipino are widely spoken; English is often used in business contexts.
• Business Etiquette: Building relationships and trust is crucial. Meetings often begin with informal conversation.

Political Factors

• Government: Presidential Republic.
• Stability: Generally stable, but it’s important to monitor political developments.

Economic Factors

• Currency: Philippine Peso (PHP).
• Investment Opportunities: Key sectors include technology, agriculture, and manufacturing.

Foreign Exchange

• Exchange Rate: The Peso can fluctuate; monitoring currency markets is advisable.
• Regulations: Some exchange controls exist; consult local financial experts.

Rule of Law

• Legal System: Based on civil law; provides a framework for business operations.
• Intellectual Property: Protections align with international standards.

Infrastructure

• Transport: Developing infrastructure with ongoing improvements in roads and ports.
• Utilities: Generally reliable, but plan for contingencies.

Key Contacts

• Department of Trade and Industry (DTI)
  • Website: DTI Philippines
• Bangko Sentral ng Pilipinas (BSP)
  • Website: BSP