Hobby Or Serious Income Producer?

Many expats want to start a business in teh Philippines to give themselves somethign to do during retirement or to earn an income. For many it is a way to play at being a business tycoon. You have the thrill of entrepreneurship, lots of cheap staff to run around calling you “Sir” and so on.

For some though they are serious and they make a serious income from their businesses. Others just do it to provide the wife’s relatives with an income. You can do both. Have an income producing business and give employment to family.

If you want to be a serious operation it pays if you know what you are doing, have done it before and are very well financed and connected. For the rest of us, why not diversify? Too many people try and make a living from the one business. Far easier to make a little amount of money from a lot of little businesses selling to a lot of little (income wise) people.

It is easier to make P5 than 500. Then all you have to do is repeat that P5 ninety nine more times and you’re there! Luckily there are lots of people in the Philippines. You can also run several operations at once and enjoy the aggregate of their profits. Think about it, think outside the western square and within the local mindset and market.

Starting A Business?

If you are thinking of starting a business in the Philippines you should read ‘Making A Living In The Philippines’ for all the details you need to do it safely, legally and to have the best chance to succeed.

First of all there is a great long list of professions and businesses prohibited to foreigners outright. Unless you are employed by a local firm or an international one with Philippines offices, you can’t be a doctor, lawyer, engineer, chemist, pharmacist, vet, nurse, dentist and so on.

Then there are the activities that are totally taboo such as anything to do with weapons and ammunition, nuclear fuels and so forth. They also prohibit licentious and lewd activities so think carefully before investing in that girlie bar in Angeles.

Once all of that is taken into consideration there is the list of business types that require varying percentages of local ownership. Without hundreds of thousands of dollars and in some cases millions of dollars of turnover you can’t even contemplate retail. Forget transportation, fishing, farming and tourism unless you meet strict criteria.

Of course there are exceptions and ways to abide by the rules and still achieve your business objectives but do be careful of using dummy owners and front people because there are separate ‘Anti-Dummy’ laws to add years to your sentence if convicted.

You also need clearances, permits, approvals and all sorts of paperwork because as a foreigner you will be noticed. Someone will resent your becoming competition and get a thrill out of throwing their weight around and showing the ‘Kano’ who is boss in their own country.

Get the book. At US$29.99 in eBook format and US$39.99 in hard copy paperback from Lulu.com it is a very sensible investment.

New Visa For Employers

There is a new visa available for employers who start a business that employs at least ten Filipinos full time. The SVEG or Special Visa For Employment Growth offers similar privileges to the SRRV such as free multiple entry and exits however you don’t have to lodge tens of thousands of dollars with a local bank for six months.

You do need to employ at least ten Filipino citizens at all times and domestic servants, helpers, drivers etc don’t count. The whole point of the visa is to encourage employers to set up shop in the Philippines and employ some of the all too many unemployed and under employed Filipinos. You still need to abide by the existing laws governing the amount of ownership of the business you may hold and the professions and practices prohibited to Foreigners remain in force.