Within the Philippines, there are 3 business ownership

Within the Philippines, there are 3 business ownership options - sole proprietorship, relationship, and a corporation. Which is best for foreign people will depend upon the size of the business, your own residency status, and whether you are married to a Philippines citizen.

1 . Lone proprietorship Corporation Sole - this is the preferable organization structure for a small business if you are wedded to a Philippines citizen. It provides total authority in your spouse's name and he/she owns all the assets. However, your spouse also will owe and answer personally to all liabilities or suffer all losses. It is easy to form and to register with the government.

2 . Joint venture - this is a business owned simply by two or more partners. One with more than Pesos 3, 000 capital has to register with the Securities and Exchange Charge. All the partners have personal legal responsibility for the affairs of the business. It is like two sole proprietorships become a member of together. There are certain benefits for two Filipino citizen partners, but there is no advantage to you as a foreigner.

3. Organization - this is my preferred kind of ownership if the business is going to be everything larger than a small hobby type company. For a small business, you are better off merely being in a sole proprietorship.

For that business of any significance (such as a real estate ownership business, a franchise, a significant manufacturing or foreign trade business), this is definitely the preferred way of ownership, and you as the foreigner may retain up to 40% ownership, through having yourself as the sole examine signer on the bank account, you efficiently control the corporation.

The minimum capital requirement is Pesos 5, 000 and it is regulated by the Securities in addition to Exchange Commission. The shareholders'

liability is simply limited to their amount of typically the share capital. There must be at least several (5) incorporators, each of which must hold at least one share. So what you are doing, for example, is issue 56 gives you to your spouse, 4 shares with her relatives, and 40 shares to yourself.

Minimum up front capital for your corporation is 25% of the activated stock, and a minimum of 25% on the authorized stock must be subscribed at the moment the corporation is registered.