The ITC sector in the Philippines is projected to continue to increase because of the opportunities in the financial, telecommunications, Business Process Management and health IT industries. The large consumer spending, the low PC penetration and small or mid-sized business modernization are also expected to contribute to this development. In this article, our company formation consultants in the Philippines make a brief overview on how to start an IT company in the Philippines.
Opening a legal entity in the Philippines
Investors who are interested in opening an IT company in the Philippines cannot set up a limited liability company (LLC) here, since this type of legal entity is not provided by the local legislation.
As a result, the most popular type of legal entity chosen by foreign entrepreneurs here is the branch of a foreign company.
According to the local regulations, foreign legal entities are able to set up branches in the Philippines, if they do not activate in certain sectors which are restricted to foreign citizens.
A branch company registration in the Philippines does not require the appointment of resident directors and shareholders.
This type of business vehicle, however, still requires the appointment of one country representative. This person usually is a resident of the country and, if he or she is a foreign citizen, is allowed to work in the Philippines.
If you would like to open such company in the Philippines, our advisors can help.
IT companies need to observe the local tax rules, as well as the applicable accounting principles (IAS/IFRS) and the requirement to submit annual financial statements. These need to be prepared and audited by an independent and certified public accountant in Philippines. You can choose to work with our team to ensure complete compliance, as well as access professional accounting and bookkeeping solutions.
IT industry development in the Philippines
The great development of the IT industry in the Philippines has enabled the country to keep up with the necessary outsourcing skills and capabilities of the local workforce in the sector.
The IT sector is extremely developed in the following fields:
- • Contact centers;
- • Software development;
- • Engineering development;
- • Back-office services;
- • Data transcription;
- • Animation;
- • Game development.
Our Philippines company formation agents can provide more details on the development of the IT sector in this country.
If you have more questions about the IT industry in the Philippines, or for help in starting a business in the Philippines, please do not hesitate to get in touch with our friendly staff.
Although the core of our activities consists of assistance for company formation purposes, we are also able to assist clients with many different issues related to their stay and their activities in the country. if you wish to know more about how you can move to the Philippines, our team will give you complete details about the qualifications and entry conditions based on your nationality.