I’ve talked before that setting up shop in the Philippines is really hard, and that’s still the case today.
People sometimes want advice on how to set up a legal entity in the Philippines and my advice is
DON’T.
It’s really difficult, and the Philippines government is not trying to make it easier.
But if you want to set up shop in the Philippines just because you want your OFS to work in the same place without going through the paperwork and government red tape, you might want to consider renting from a co-working space.
Now that most COVID restrictions have been lifted in the Philippines, co-working spaces are opening up again.
The great thing about co-working spaces:
– It lets your business have an “office space” where your OFS team can work without having to set up shop in the Philippines.
– Most co-working spaces in the Philippines have Fiber internet, back-ups, and a generator. Blackouts and internet outages would be less of a problem.
– Your OFS will be comfortable because most of these places have air-conditioning and unlimited coffee.
We know that some OFS use co-working spaces as back-up offices where they pay by the day. They go there if there’s an internet/power outage at home, or a change of scenery.
If your OFS team all live in the same place, having them together in a co-working space makes sense. You don’t have to worry if your OFS can’t get back-up internet or upgrade their internet because their area doesn’t have that service.
Despite these advantages, most of our OFS still prefer to work from home for the following reasons:
– Most co-working spaces are in big cities, which means commuting through traffic.
– Not all co-working spaces are open 24 hours a day. OFS that work at night can’t use it. In most places, it’s also safer for them to just work at home.
– It can be expensive. The average cost per desk is around $100 per month, but some offer cheaper rates when you get more desks. It’s more expensive for your OFS too, because they’ll have to spend for fare, outside food, etc. So if you only have a small OFS team or your team is distributed nationwide, it’s cheaper just to give them an internet allowance.
– Some co-working spaces will require you to be a registered business in the Philippines if you rent out a bigger office or a lot of seats.
Take note that a co-working space will NOT manage or monitor your OFS for you. They just rent out the space. They can’t force your OFS to show up for their shift. They’re not going to watch over your OFS to make sure they’re working.
But, if you’re looking for office space in the Philippines without the hassle of setting up a legal entity there, this could be a really good option.
John
Generally speaking, red-tape is one of our political issues in the Philippines indeed, but putting up a business may not be challenging as it should be for a prudent businessman who knows what buttons to push – for legal entity assistance in the Philippines.
You can’t engage the services of the “street-smart pretenders” who knows nothing but to get a piece of you.
As a Juris Doctor graduate and familiar with how our legal system works, I suggest to engage the professional services of a local consultancy firm (legal & Business) to incorporate your business and NOT those you randomly meet online or marketplaces… Unless, if you have ample time to wrestle with the hassle!
There are trustworthy firms whom you can ask for help, and verify their credibility thru their websites. Websites speaks a lot.
And this is what I do every time I’d register my local business for my offshore clients.