Published date: 15/11/2021
The Philippines is endued with large deposits of natural resources and belongs to the highest ten world producers of gold, copper and chromite. The Philippines is a flourishing nation that is among the fastest-growing economies in Asia due to the economic upsurge during the past year. It continues to push economic development by attracting foreign investment and ongoing integration within the regional and global markets. Before established a company in the Philippines, let’s look at the advantages of doing business in the Philippines.
1. Quality Educated Filipino Workforce
The Filipino workforce is one of the foremost compelling advantages the Philippines has over the other land. With education priority, the literacy rate within the country is 91.6% – among the best. English is taught all in schools, making the Philippines the world’s third-largest English-speaking country.
2. Infrastructure development
Build! Build! Build! has been the slogan of the government for the past 5 years to stimulate the economy. Under this program 214 airport projects, 451 commercial social and tourism port projects, 29,264 kilometers (18,184 mi) of roads, 5,950 bridges, 11,340 flood control projects, and 150,149 classrooms had been completed as of July 2021. According to the government, it will usher in the “Golden Age of Infrastructure”.
3. Liberalized and Business-Friendly Economy
An open economy allows 100% foreign ownership in the majority sectors and supports a Build-Operate-Transfer (BOT) investment scheme that other Asian countries emulate. Government corporations are being privatized and also the banking, insurance, shipping telecommunications and power industries are deregulated. In terms of the Philippines tax system, from July 2020 to 2022, companies are going to be eligible for a reduced corporate tax (CIT) rate of 25 percent as compared to the regular rate of 30 percent. This will be further reduced by 1% annually and shall eventually reach 20% by 2027 onwards. — the very best in ASEAN. In addition to that, the minimum corporate income tax (MCIT) was also reduced from 2% to 1%.
4. Strategic Location
Situated right within the center of Asia – today the fastest-growing region. It’s located within four hours flying time from major capitals of the region. Sited at the crossroads of the eastern and western business, it is a critical entry point to over 500 million people within the ASEAN market and a gateway of international shipping and air lanes fitted to European and American businesses.
5. Hospitable Lifestyle
The Philippines is the second home to expatriates who enjoy the cooperation of the warmest people within the region, the country’s openness to varied cultures and a decidedly global outlook. Expats enjoy accessible and affordable luxuries – business centers, housing, schools, hospitals, shopping malls, hotels and restaurants, beach resorts, and recreation centers.
We hope that the information we shared, may attract you to expand your business in the Philippines. In OCS, we provide company incorporation, overseas business administration, overseas working visa services and etc. You may visit our website for more info.