Setting up an LLC in the USA is so easy.  
Anyone can pay a lawyer $500 and have an LLC up and running in a week (including a minor or a foreign citizen or…whoever).
Or you can do it yourself and pay the local state fee of $20-$100.
So simple my kids have their own LLCs for businesses they run.

Not so in the Philippines.

I got an interesting email recently asking whether you need to set up a company in the Philippines. Like, you apply for a business permit and set up shop there.

The reason they’re asking is that they want to grow their team. A Filipino entity would show that the business is stable and serious. It might help with recruiting new OFS. Setting up shop in the country shows you’re committed to hiring in the Philippines.

I’ve seen other people do it but we don’t.

Here’s my experience:

1. In order to own a business in the Philippines you have to be a Philippines citizen. It’s not like in the US where you just set up an LLC and have to have a registered agent.  You actually have to have a Filipino citizen be part owner.

2. We tried for a year and a half to set up a business there. It was really hard. So much red tape. So many hoops to jump through.  Really difficult.

3. About 10 years ago I had a friend who successfully did it. Here’s how.
– he traveled to the Philippines
– he got $15,000 (USD) cash
– he had a team member he trusted to be the citizen owner
– he had a connection with someone in the local government
– he paid $15,000 to get his business set up in 1 week. Basically, it was bribe money for multiple people to get them to look the other way and put him at the front of the list.
– he got an office and outfitted it (like $10k USD)
– he got pictures of his whole team set up in this nice office space
– 2 years later his business completely changed and he shut it all down.

Kudos to those who managed to do it. We never pushed through with it. The process was just so long and problematic and opened up our business to a lot of new/different liabilities. In the end, we gave up. 

But that doesn’t mean you can’t show stability and commitment in other ways. 

Offering them a full-time, salaried job with paid leave is a good start. You can also offer your OFS benefits like healthcare or share in their SSS and Philhealth payments. Giving them a yearly raise and bonuses also shows that your business is stable, and you’re committed to your employees. 

Don’t over-complicate things.


PS. Want a simple way to find a great OFS?  My system attempts to make the fastest, simplest, and most sure way to find and hire a great OFS.