Inside the Philippines, there are 3 business property

Inside the Philippines, there are 3 business property options - sole proprietorship, joint venture, and a corporation. Which is best for foreign people will depend upon the size of the business, the residency status, and whether you are betrothed to a Philippines citizen.

1 . Only proprietorship - this is the preferable organization structure for a small business if you are wedded to a Philippines citizen. It provides complete 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 simple to register with the government.

2 . Alliance - this is a business owned simply by two or more partners. One with more than Pesos 3, 000 capital has to signup with the Securities and Exchange Returns. All the partners have personal responsibility for the affairs of the business. Its like two sole proprietorships linked together. There are certain benefits for two Filipino citizen partners, but there is no benefit to you as a foreigner.

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

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

The minimum capital requirement is Pesos 5, 500 and it is regulated by the Securities and even Exchange Commission. The shareholders'

the liability is simply limited to their amount of typically the share capital. There must be at least five (5) incorporators, each of which should hold at least one share. So what you have to do, for example, is issue 56 stocks to your spouse, 4 shares to her relatives, and 40 shares to be able to yourself.

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