How to Establish Your Business in the Philippines

Type of company:

• Foreign Branch
• Foreign Representative Office
• 100% fully foreign owned Domestic Corporation
• 60/40 owned Domestic Corporation

There are available consultancy firm that can assist and help assess those who need investment vehicle best for the owner and the company. Such services will be provided:

• Procedure
• Planning
• Registration to relevant Philippine government agencies (e.g Securities and Exchange Commission, Department of Trade and Industry, Bureau of Internal Revenue, etc.)

Added services will be as follows:

• Determine Capital Requirement
• Assist in the opening of local bank account
• Register and secure company name with Securities and Exchange Commission or with Department of Trade and Industry
• Identify Shareholders, Directors, Nominees and Incorporator
• Draft Articles of Incorporation and By-Laws
• Process documents with Securities and Exchange Commission, Board of Investment, Philippine Economic Zone Authority, Bureau of Internal Revenue, Social Security System, etc
• Process Mayor Permit and Business Permit
• And whole lot more depending on capacity of the firm and where in the Philippines it is intended to establish its office/s.

Please be advice to get only credible and honest consultancy firm to avoid loss of time and money. The consultancy firm will also mention the existing realities and limitation with concerns to facility, national economic status, negative reports and things to expect.

Eligible businesses may then register their businesses with Philippine Economic Zone Authority, Board of Investment, etc. Incentives such as income tax holidays and special tax regimes are available to foreign investment.

Most foreign investors usually start through a Domestic corporation or a Branch. We recommend to register as corporation as there are administrative regulations. Branches, which may be more advantageous tax wise, cannot be used if the activities to be undertaken are included in the Foreign Investment Negative list. Corporations can accommodate Philippine ownership.

Forming or registering a corporation has to comply with the following requirement:

• Minimum of 5 incorporator, each of whom must be actual persons and hold at least a single share in the company.
• Majority of the incorporator must be Filipino.
• A Corporation must have between 5 and 15 directors, each of whom must have at least one share of stock.
• Majority of the directors (or trustees) must be Philippine residents.
• All Domestic Corporations (those incorporated in the Philippines) must obtain their license with the Securities and Exchange Commission
• Philippine Securities and Exchange Commission requires the following:

- Has to reserve and register a company name
- Has to submit proposed Articles of Incorporation and By-Laws in compliance with the Corporation Code of the Philippines
- Proof of minimum capitalization required to every industry or business the corporation is engaged in
- Has to have the minimum paid-up capital requirement for a corporation or where the foreign equity exceeds 40% is US$200,000, which must be remitted into the Philippines
- Must employ at least 50 employees.

All other details related to start-up, branch establishment and export oriented firms will be explained further by the consultancy firm. The issuance of a certificate of incorporation from the SEC signifies the commencement of corporate existence and juridical personality for a company.

Businesses must also register with the following agencies:

• Bureau of Internal Revenue
• Social Security System
• Home Development Mutual Fund
• Philippine Health Insurance Corporation
• And the local government unit where its principal office will be located.

If the business wish to operate as sole beneficial owner of the business, it should be registered to the Department of Trade and Industry and with the Beureu of Internal Revenue and must also register its business name with the Department of Trade and Industry through the Bureau of Trade Regulation and Consumer Protection.

Other details will be explained further by the consultancy firm or the entrepreneur. You can inquire directly to Department of Trade and Industry.

Vicky Wallace and Her Bee Farm in Bohol Philippines

Image is excerpt from Google Images

Who would have thought that a high earning US base Filipino Nurse and a mother would trade all she owned in America, in exchange of her one chance to establish a community building organic farm in Bohol Philippines. Better known as Bohol Bee Farm.

The lady in the spot light is “Vicky Wallace,” a New York based nurse-turned-farmer.” I loved what she said…

“You make good money in the States but you have to ask yourself what is it all about.” I had three jobs. I hardly saw my kids. So after the school year there ended, I brought them here.”

She also said that returning to the Philippines to start a business was one of the best decisions she made in her life.

Rough Start for Vicky

As always, the non-traditional are the ones persecuted for their unorthodox vision. It was when Vicky’s husband died in 1988. She began to rethink of her priorities as a mother and in life. As mentioned, it wasn’t an easy decision to make. Nonetheless, Vicky was firm on her decision, no matter what other people said. Let me quote her mother’s own words, , ‘Why are you dragging your kids to the Philippines, ‘as if it was a bad thing,” she relates. Good thing Vicky did not give up. Now, Bohol Bee Farm is a blessing not just to her family but to the whole province of Bohol as it also attracts tourist and it branch out to other possibilities and entrepreneurial opportunities. Let me again quote another words of Vicky…

“But I never regretted my decision. What kept me going was the thought that I didn’t want to live a life where my children grew up not knowing who I was because I was always working, and later their children would grow up the same way.”

“What kept me going was the thought that I didn’t want to live a life where my children grew up not knowing who I was because I was always working, and later their children would grow up the same way.”

Vicky bought lands where she invested some of her earned money, of which they settled in of it. She started selling vegetables to her children’s classmates. Later the parents married to foreigners went to the farm themselves and harvest their preferred vegetables. She also expanded to homemade bread. Her success in homemade bread starts when she baked breads that suits customer’s tastes. She observed that foreigners don’t like it sweet. In the contrary, locals love their kamote bread, which is slightly sweeter. Bee Farm’s herb bread is a hit to foreigners and hopes to win Filipinos tastes soon. There’s no stopping this lady as she also offered muffins and crafts, something she learned in the US.

More of Bohol Bee Farm on their site…

http://www.boholbeefarm.com/

Old Kano - From Farm Animals to Organic Farming

One thing I like about National Geographic and Discovery Channel is their highly informative exploration in almost all aspects of human lives and the environment. But still, they could not tell it all as this world alone is too big for a show as theirs. Hope with this site of mine, I was able to relay some of the not so famous places I visited. Thus, in my own way I could pay tribute as well to some pioneers in their own fields.

At this point, allow me to uncover an organic farm in Silang, Cavite Philippines (near Tagaytay City) named, “Old Kano.”

Google map link: hhttp://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=SILANG+CAVITE+PHILIPPINES&sll=37.0625,-95.677068&sspn=25.565517,56.513672&ie=UTF8&hq=&hnear=Silang,+CALABARZON,+Philippines&t=h&z=11

The word “Kano” is a colloquial term for American. I would like to show some of the pictures I’ve taken before I proceed…

Allow me to tell you the story. Old Kano farm has a total lot area of 12,747 square meters along the province of Silang Cavite Philippines. The couple Mrs. Julieta and the late Mr. Fred Ammann owned this farm.

The couple actually started in Caloocan City (Metro Manila) where their actual business is selling of rabbits, turkey and other farm animals to some restaurant businesses in Manila. If I were not mistaken, the couple acquired the farm lot to expand their business they started in Caloocan. By that time, the Old Kano farm was not yet as known today. As days goes by, Fred Ammann started to sow some plot of “Dill” (exotic herbs) out of plain hobby. As this farm is along the way to the famous tourist destination Taal volcano view at Tagaytay City, an unexpected visitor one day came and he simply could not ignore the bed of “Dill.” He is Mr. Werner Berger. He bought some and asked how many he could grow. Mr. Berger came back but this time he brought with him the head chef then of Manila Peninsula, Mr. Alfred Moser. The man did not just order 30 kgs of dill every week but ask what else he grow. Mr. Fred handed a seed catalog to Chef Moser. The rest is history.

Out of a Mr. Fred’s plain hobby turned into a chance of a life time. Although not that big as what others have made, Mr. Fred sow more that a seed of dill but a legacy of practical organic farming in the Philippines that could sprout into more bigger and high modern organic farms in this land.

Now, Old Kano farm has abandoned farm animal selling and only produces a lot of salad crops, edible flowers and some exotic vegetables produced exclusively at the farm. They supply to many hotels and restaurants mostly in Metro Manila.

Old Kano was the pioneer on organic farming. Some of their offer are as follows: green ice, romain, lolo rosa, red lettuces, tatsoi, mizuna, cucumber, new zealand spinach, baby carrots, endive, french beans, kohlrabi, red raddish, cherry tomatoes , turnips tokyo, and stripped egg plants. Among the 18 varieties of herbs they produce are purple basil, sweet basil, cilantro, dill, marjoram, mint, Italian oregano, Italain parsley, arugula, rosemary, sage, sorrel, mexican tarragon, thyme, thai pepper, the habanero pepper, the cayenne. Their also produce tatsoi fine leaves, mizuna fine leaves, rocketa fin leaves, fennel fine leaves, kohlrabi fine leaves, sorrel fine leaves, mesclun leaves mix with lettuce leaves, mustard and radish sprout.

I was able to talk to one of the worker. I admire how they continue what Mr. Fred’s legacy under Mrs. Julieta (Mr. Fred’s wife). I fell in love with this farm though you could see how time has dilapidated many of the facilities. How I wish I could acquire this Old Kano farm to continue the vision of Mr. Fred and elevate it into the next level. I am more than willing to joint venture with an foreign partner with knowledge in farm technology advancement to put up both a farming school and modern farm as what Kim Yong Ki has done to Canaan Farm-School in South Korea without forgetting the vision of Mr. Fred. I know I could improve its façade to make it also friendly for visitors and tourist as it is also done in Thailand and in other known agri farms. Global commodity trading is now pointing to organic so this and other farms is sure winner if given the right investment and improvements.

Wealth Behind Moring Tree

If you can read between the lines, you will notice that 2010 and beyond is really the Asian Century. It’s not a coincidence that the tallest building is now in Dubai, earlier in Taiwan and Malaysia. Same with Manny Pacquiao and other Asian competitor, they seem to open the curtain for Asia to be recognized again.

If you are that observant, many industrialized countries these days are silently buying vast agricultural lands in many parts of South East Asia like the Philippines. I my self could not believe how large from the farm land areas and properties are already in the hands of foreigners from USA, Europe and the Middle East. The threat of global warming is eminent and it will surely affect global food supply. This is the obvious reason why they are preparing. And if you are into investing, you should now consider agriculture before others overtake you. If you are that observant, global trade is now pointing to organic and people are getting concious of the products they buy especially on food. Even Coca Cola and Pepsi and large food multinationals are already investing on agricultural products as coconut, etc.

If you already heard, Moringa is now being eyed by many as one of the best source of organic products from alternative fuel (biofuel), organic food products (both for human and animal consumption), cosmetics ingredients, best for malnutrition control, etc. Scientist is calling it, the wonder tree. Come to think of it, moring (or “malungay” in the Philippines) is easily grown in the Philippines and can be planted almost anywhere and by anyone. Many do not know it yet but moringa is anticipatedly be indemand in the next couple of months and years, per study made by American scientist. They made a conclusion that moringa is better than jatropa and other organic raw materials. Proof of its worth is the two big moringa processing plants being established by American and Europeans somewehre in Mindanao and the Visayas (Part of Philippines). More of its benefits via youtube link below:

http://www.youtube.com/watch?v=LJoDQhDhZqY&feature=player_embedded

The demands of moringa are getting bigger and bigger every day. But I noticed the need for product development is somehow lacking. In this regard, I conceptualized a business plan that is focus on moringa research and development, in collaboration with a contact college dean and consultants. I believe that this facility is necessary to further develop products being sought both in the global market. My inspiration is the International Rice Research Institute which is also located in the Philippines. With my involvement and desire to continually serve the poor and my being involve with various NGO (Sight and Life Switzerland, World Bank, etc.), I was able to develop a credible business plan proposal. If the facility is to be funded and be established, hunger control programs by various global NGO will be supported on a cost-effective manner.

http://www.youtube.com/watch?v=KqPBmERC7OU&feature=player_embedded

Hope Sight and Life Switzerland and/or United Nations and and the like will notice or support us. I am very much willing to be in partnership with them on their advocacies.

The business plan proposal is available upon request to investor/s. I could be reached through my direct e-mail denissalvatierra@yahoo.com

Below is the business concept for those may be interested:

What we will offer?

We intend to study further moringa products for development and research and trade

Products as healthy option:

• Powderized
• Moringa granule/cube seasoning
• (concentrated moringa)
• Textured vegetable meat
• Vitamin and oother medicinal derivatives
• Moringa blend beverages
• Cosmetics ingredients
• Moringa Oil

Mission

• Promote the use of moringa as healthful option for rural and urban living
• Provide ways to reduce poverty
• Develop environmental awareness and contribute to greener earth

Vision

The Philippine Moringa providing the world’s need for organic food, medicines, and making a greener Earth.

Motivation:

Concern for national and global issues related to hunger, poverty and environmental problems.

Quotation:

“Invention is the mother of necessity.” Thorstein Veblen

Core Competencies.

• This firm will be the first in the Philippines and in South East Asia.
• Our pilot projects are the missing link to moringa product trade.
• Moringa are common in the Philippines and are easily planted.
• I expect government support as this business will create jobs and livelihood opportunities.
• Our research effort and anticipated discoveries will surely create jobs and open opportunities for more business to be open.
• Our recommended location are both better area for scientist and farm observatory due to its environmental benefits (cool climate and fertile soil along Tagaytay, Philippines). We are also considering other options as Davao, Palawan, Bicol, etc.
• There are 2 big moringa processing plant now being built at Mindanao. Philippines have increasing supply of moringa harvest due to continuous encouragement by government.
• What will differentiate us from the rest is our intention to hire foreign scientists/experts on moringa. We also intend to seek support from the likes of Sight and Life Switzerland, United Nations, Word Food Program, and other global NGO.

Products.

Moringa base products:

• Food (human & animal consumption)
• Cosmetics ingredients
• Industrial raw materials as Biofuel
• Others

Benefits from Moringa:

Pods

• Human Food
• Medicine

Seeds

• Edible Oil
• Cosmetics and Skin care raw materials
• Perfume
• Oil lubricants
• Water purifier
• Animal Feeds
• Fertilizer
• Medicine

Leaves

• Human Food / Cooking Ingredients
• Natural Fertilizer
• Medicine
• Domestic Cleaning Agent

Flower

• Medicine
• Health Drink

Roots, Bark and Gum

• Medicine
• Alley cropping
• There’s more

Many scientists call it a miracle tree because of its wondrous benefits. Locally, Filipinos calls as “Malunggay.” Other nationalities called it Horseradish and Drumstick. It has higher oil content of 40% compared to other source. It has one of the most nutritious sources of food raw materials known to men.

Target Market.

Local Customer:

• Moringa Processing Plant
• Local pharmaceutical companies
• Moringa products Manufacturing
• Other Industry requiring research
• Publication Industry
• NGO
• Concerned Government Agency

International Customer:

• Global NGO facilitating moringa requirement to other countries
• Moringa Oil importer in US and other industrialized countries

Note: The proponent intends to supply moringa products in the near future, in partnership with local cooperatives and suppliers of moringa products, in collaboration with its partner trading firm, “Sembawang Trading.”

Market Trends.

According to global trends and studies made, these sectors have high demands:

· Food consumption

· Processing High-end

· Cosmetics

· Biofuel

EU is growing at a CAGR of 7.3% and US at 3.5% over 2003-2006 consumption/processing period.

USA domestic production capacity necessitates increased Market Overview imports. Prices per liter for comparable oils higher than expected price of Moringa. Gap being formed for vegetable oils in this market due to shift to biodiesel

Competitive Differentiation.

As to moringa research firms in the Philippines and abroad, the treat is minimal because the competition is not that stiff and only few are on this line.

The proponent is planning to get the services of SAP for a cost effective systems and procedure in its adherence to high standard.

Intellectual Property Strategy.

This firm will register its products/ services ability for copyright.

Management Team.

The team to be formed will surely be globally competitive as it will be a fusion of intellectuals in agri-research and collaboration between different nationals and cultures.

Immediate Requirement:

We are in need of Funding and Investment

More details at full Business Plan upon request at denissalvatierra@yahoo.com.

You need not release a lot of money for investment on this, but better if you can be our partner in acquiring a farm for moringa and build environmental friendly office-laboratory facility. All we need at the moment is to start the business (later, investors will be approached):

Target location for the farm and office-laboratory facility is at Tagaytay Philippines (not that far from International Rice Research Institute and University of the Philippines Los Banos Laguna.

This will not just create jobs and help in the organic industry, it will control hunger problem especially in Africa and other poor countries of the world.

Note: We intend to build office-laboratory made of used container van. Actual floor plan lay-out is available upon request.