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STARTING A BUSINESS AS AN OFW

You can supplement your income by starting a business, enabling you to make extra money. It’s a better choice than working a second job every month. Additionally, it increases your income and offers security that is difficult to come by in most occupations.

Particularly in the Philippines, businesses are doing well, thanks to the expanding economy brought on by rising urbanization, an expanding middle class, growing awareness of the advantages of wealth accumulation, and a surging young population. Additionally, the current generation of Internet babies is quite familiar with this period of Internet-based companies due to the advancement of information and industrial technology and the contemporary social climate.

Mins to Read: 6 to 8 minutes

Age Bracket: 30 to 45 years old

A foreign business’s establishment presents various difficulties. Fortunately, it is feasible to launch a company in the Philippines from another country. This article will show how to start a business without traveling to the Philippines.

Accessible Local Bank Account

In the Philippines, you must have a local corporate bank account. It will simplify transactions. Additionally, it will be useful for tracking and reporting your investment. Most banks demand that customers open accounts in person. Delays will result from this, particularly if you are unable to travel to the Philippines.

Banks occasionally permit authorized representatives to open business bank accounts. Emerhub can help you open a business bank account in the Philippines. We can open an account on your behalf thanks to our collaboration with a nearby bank. You won’t have to show up there in person because we’ll take care of everything.

Finding and Setting up the right location

It is crucial to think carefully about where you will locate your company because location is a crucial aspect of any organization. A good location may guarantee success, while a poorly chosen place for your business operation may only lead to financial capital loss and a downward spiral.

Additionally, you must register with the local government in the area where your business will be located. As a result, in order to complete company registration, a business address is required. Signing lease agreements is dangerous because you won’t be able to inspect commercial premises yourself while you’re away.

You can also use virtual office address in place of that. A quick and affordable way to get a business address in the Philippines is by using a virtual address. You won’t need to worry about locating a suitable property.

Capital and Finance

Naturally, money is needed to launch a firm. Having said that, you must make sure you have sufficient funds before moving on. It’s time to raise funds if you don’t. You must prepare a budget that will cover your expenses for at least the next six to twelve months because you will need money to pay for necessary equipment, tools, supplies, and materials in addition to recurring charges.

A corporation with more than 40% foreign ownership must have USD 200,000 in capital. This could be greater or lower depending on specific factors. A summary of the minimum capital requirements for corporations in the Philippines can be found in the table below:

Conditions	Requirements Needed
Company with over 40% foreign ownership	USD 200,000 (Higher capital requirement for some industries)
Company with less than 40% foreign ownership	Php 5,000 (approx. USD 100)
Company employs at least 50 Filipinos	USD 100,000
Company uses advanced technology	USD 100,000
Company exports at least 70% of its products	PHP 5,000 (approx. USD 100)

To make sure you are obtaining enough funding, you can:

Start by compiling a list of all the costs associated with launching and maintaining your firm. You should include the following two types of expenses on your list:

One-time startup expenses: market analysis, branding, permissions and licenses, initial stock, grand opening celebration, etc.
Ongoing expenses include taxes, rent, marketing, and employee wages.

Set aside some of your resources for backup finances. This is because new enterprises typically take some time to take off, and you must ensure your company can survive a loss.

Hire Employees

Professionals with high education and skill levels are employed in high-paying fields in the Philippines. Among others, these include IT, marketing, and customer service. You can hire remote workers in the Philippines using an employer of record. You can accomplish this without creating a legal entity.

Working with a provider of employment solutions, who will take care of all of your employee and hiring needs in the Philippines, is another option for starting a business operation in the Philippines. This service provider is called an Employer of Record (EOR). An EOR is a third-party business that oversees all employment-related functions and responsibilities for the client’s employees in a particular nation on behalf of another company. By doing this, all risks and obligations related to the employment will be shared without the client company had to establish a local subsidiary.