Affivavit of Support

[EdwardB]

Well I'm back in The UK - & Ana Lyn is back some 7,000 miles away in Davao.

She certainly found Hong Kong different from Manilla where we normally meet several times a year. She clearly enjoyed the experience although I suspect given her diet of fresh fruit, fish/chicken & rice the UK is going to be a challenge. Fortunately I cook pretty seriously & that is also pretty much my diet - plus I confess to some wine and odd bottle of lager.

But anyway - back to the reason for posting.

Despite an e-mail to the immigration commissioner in Manilla & copy to the immigration office in Davao we still had problems. Ana Lyn went to the Davao immigration office first thing last Monday. She was armed with all the paperwork but I still ended up talking through her online using YM, and by mobile, to an immigration officer. The fact he could see me on a cam clearly helped to persuade him to countersign the "Affidavit" as an approved copy!

Somehow the incident had got blown up and poor Ana Lyn was caught up in it. She was accused of telling the other girls who had been denied exit that the immigration officer who had refused her exit at Davao airport on Friday night had a tariff of 6,000 pesos. She denied - truthfully I hasten to add - any such knowledge. She was certainly telling the truth because I would have paid the 6,000 pesos and this thread would never have started!!

Smoke without fire?

Is this the tariff?

[dondi]

Back to a serious subject has anyone any experience in incoroporating a business in The Philippines? If so please PM. I have spent a fortune on sub-contracting but I have a concept that could really fly if the system doesn't make it too difficult to be worth the effort.

I used to run a resort in Palawan owned by a corporation based in the US. I was responsible in incorporating the business in the Philippines. It wasn't that complicated.. but then again it all depends on the type of business, composition of shareholders, capitalisation, etc.

What sort of business are you planning to put up?


Dondi

[EdwardB]

Thanks dondi, for the reply. It seems I can't be PM'd

I was looking up setting a studio to digitize peoples photos.

We'd look to bring in negatives (preferably rather than prints) & use high end scanners to digitize & return by e-mail/ftp/flickr. We may also offer the slightly luddite option of returning the negatives with prints, which may be attractive to the grey market who are the likely bulk of customers.

The skill set is readily available and the labor rates make the idea viable. It is also scaleable - & the available labor force is huge.

Where I have concerns are customs clearance and the costs of equipment given the very high relative costs of computers & components in The Philippines. Plus of course incorporation and who can effectively control.

I have sub contracted a lot of graphics work in to The Philippines over recent years. & apart from the inevitable delivery deadline issues the experience has been satisfactory.

[dondi]

Yes, you're a newbie so can't be PMd

Looks like you're getting into a very competitive business with the likes of Kodak and Fuji as main rivals. In fact, they have photo shops all over the country and in major malls. However, I'm not entirely sure how you will set up your biz and you might be looking at tapping a niche market.

Generally, foreign ownership of corporations in the Phils is limited to 40% and 60% should be Filipino owned. There are exceptions of course but I don't think your business would qualify (see link below). Corporations and partnerships are registered in the Securities and Exchange Commission. They provide pro-forma application forms and it takes a few weeks for approval as long as you have the right info.

You may opt to register your business as single proprietorship and this is handled by the Department of Trade and Industry. Again, you may be restricted in terms of ownership with a few exceptions.

You will also have to register with the local government who issues business permits. Finally, for tax purposes, you need to register with the Bureau of Internal Revenue.

Having a local contact to do processing of permits and licenses would help but you have to be careful choosing someone trustworhty. If you have friends or wife's relatives who can help, the better. Otherwise, don't just trust anybody as there are lots of opportunistic individuals lurking around. The rule is 'deal with someone you know'.

These are just the minimum. Once ypur business has taken off, you need social security (SSS), health insurance (Philhealth) and other statutory benefits for your employees like 13th month pay at the end of the year.

It may sound scary but for a seasoned businessman, that's a given especially if you decide to do business outside your comfort zone... it's part of the risk, so they say.

Google the topic or see link below for more info:

http://www.bcphilippineslawyers.com/...ilippines/318/

Hope this helps.

Dondi

[EdwardB]

Thanks Dondi,

the links were very helpful.

& no I'm not looking to run into Fuji and/or Kodak. Positioning is a bit more niche than that.

Regards.