Expand Business in Philippines
Global Upside helps businesses expand into Philippines by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with laws and regulations in the Philippines.
The hiring and incorporation processes in Philippines are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Philippines. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
The Philippines is an island country situated in the basin of the Pacific Ocean close to the equator. The economy of the Philippines is considered to be one of the most dynamic economies in the East Asia Pacific zone.
- Philippines ranks as the 35th largest economy in the world in terms of nominal GDP.
- Philippines ranks as the 13th largest economy in Asia.
- Philippines ranks as one of the world’s largest producers and exporters of coconut and its products.
- Philippines has the largest reserves of copper, gold, and zinc in the world.
- Philippines has large and unexploited mineral wealth which is estimated to be more than US$ 840 billion.
Subsidiary is a local stock enterprise, either entirely or partially possessed (yet constrained) by a foreign company. It has a different and unique legitimate entity from its parent. It is governed by its board of directors, which practices all corporate force, manages all business, and controls all property of the firm. The directors are stockholders by investors from the investors themselves. Officers are chosen by the directors, and they perform their obligations levied on them by law and the ordinances of the organization.
Branch Office (BO) is an expansion of, and not a different and unique establishment from, the foreign company. It executes business activities of the administrative office and gets payment from the Philippines. A resident specialist is allocated to whom summons and other lawful procedures might be served for the benefit of the foreign company.
Representative Office (RO) is an extension of, and not a different and unique establishment from, a foreign company. It manages the clients of the head office in the Philippines however does not derive salary from the country and is completely sponsored by its head office. A resident specialist is assigned to whom summons and other lawful procedures might be served for the benefit of the foreign company.
Regional or Area Headquarters is a management branch of a global organization and, in this way, not a different and unmistakable legal establishment. It is incorporated to regulate, connect, and integrate the global firm’s subsidiaries, partners, and branches in the Asia-Pacific zone. It is not permitted to work together or derive salary from sources within the Philippines. Its activities must be completely financed by the method of internal settlements from its head office.
Regional Operating headquarters is a management branch of a global firm and, hence, not a different and unique legal establishment. It is set up to perform qualifying administrations to the global organization’s affiliates, subsidiaries, or branches in the Philippines, the Asia-Pacific area, and other unfamiliar markets. It is barred from offering its administrations to establishments other than the preceding. Furthermore, it is restricted directly or indirectly, to promote or market products and ventures for the global organization or any of its subsidiaries or affiliates. It is permitted to receive remuneration from sources within the Philippines.
Partnership is an establishment that has legal character discrete and unique from its accomplices. For the most part, each accomplice is considered as a specialist of the organization and their demonstrations are official, except if in any case given in the Articles of Partnership. A foreign corporation might be an accomplice in a domestic association simply after such foreign organization gets a permit to execute business in the Philippines.
It takes a minimum of 4 to 8 weeks to incorporate a legal establishment in the Philippines.
According to the Labor Code of the Philippines, the prime source of employment law, there are:
- Regular employees
- Fixed-term employees
- Seasonal employees
- Project employees
- Temporary employees
- Probationary employees
The employment contract must mention the following information:
- Names of both the parties – employer and employee
- Job description
- Job details
- Working hours
- Overtime pays
- Service incentive leaves
- Statutory leaves
- Holiday benefits
- Separation and retirement pay
- Weekly offs
- Termination and notice periods
In the Philippines, salaries are usually paid bi-monthly, i.e., on the 15thand the 30th of every month. Additionally, employers need to provide the employees with a pay slip which can also be issued online and all payroll records need to be kept for a minimum of 5 years.
The Philippines Financial Reporting Standards (PFRS) has approved the IFRS accounting standards and is required both for domestic and overseas companies.
The Republic Act No. 10173, also known as the Data Privacy Act of 2012 (the ‘Data Privacy Act’) regulates general data protection laws in the Philippines. In addition to this, the Implementing Rules and Regulations of the Data Privacy Act or IRR was also declared in 2016.
In general, the Data Privacy Act and the IRR permit the handling of individual information subject to (i) obedience with the prerequisites of the Data Privacy Act and different laws permitting revelation of data to the general population; and (ii) adherence to the standards of clarity, authentic reason and proportionality.
Anti-Bribery & Anti-Corruption Law
1. Bribery of Public Officials:
For Individuals: with an intention to commit crime
i) Prision mayor for up 8 years and 1 day to 12 years’ imprisonment.
ii) A fine up to 3 times the value of the bribed gift.
iii) A penalty equivalent to the crime settled upon if a crime is committed.
For individuals: an unjust act
i) Prison correcial for up 2 years, 4 months and 1 day, to 4 years and 2 months’ imprisonment.
ii) A fine up to 2 times the value of the bribed gift.
For individuals: abstaining from an official obligation
i) Prison correcial to Prision mayor for up 4 years, 2 months and 1 day, to 10 years’ imprisonment.
ii) A fine up to 3 times the value of the bribed gift.
For legal entities:
i) The primary license will get revoked.