jeremiaiglesia12 wrote:I've been trying to research the benefits of them naming me as the "owner" of the business but it seems that I cant get a straight answer. Do you have a knowledge regarding this? Do you already have a company in the Philippines?
I have experience from INTERNATIONAL business, but not in the Philippines yet. But I have made much research about gaving business in the Philippines including reading rather much Philippine law, as a part of preparing to start a business there. (It will be a type of production, but I haven't decided yet if it will be a product to sell exporting to abroad or selling all in the Philppines.)
Well. I try to think what's best for BOTH of you and your foreign business partner
I haven't understood if it's an sell agent business or production in the Philippines. (I believe it's the first, then it's NOT an "export business" in Philippine law pooint of view, so they can own max 40 % anyway. But if so p1 is best
if you can make a solution where they find their money safe enough.)
1. Production in other country and IMported to the Philippines?
Depending of how big they aim at. IF they can be satisfied with the security they get by the "consignation solution" I described ib an earlier post, then it's best if they are just that, specialy if you can get YOUR business approved as a BMBE, because you would get big tax benefits by that. DON'T make a Joint Venture then. because I believe it's risk a BMBE will not be approve then. And DON'T name it to related to theur company name because that can be a disaproval reason too.
If they hesitate because they want an owning share, they CAN'T have that in this solution, but you can offer them e g a share of the profit if you sell the business. But read the rules concerning BMBE (=Barangay Micro Business Enterprise). BEFORE you offer them anything.
An advantage for them too, is such business can get the registration cheaper and faster so the business can start fast.
NOTE! DON'T describe your business as agent for only them in the application, wriite you will sell such types of equipment.
The barangay/municipaly office handle and are suppouse to have the information about BMBE, so you can get the rules there or at internet.
2. If the production will be in the Philippines aiming at export FROM the Philippines, and aim at being big, then you can make a Market test first, but then establish the production in an "Export zone". Then the company will get good tax benifits. They can own whole or ket you have some percent of the owning to motivate you extra
The advantage for you with this is, then it's THEIR responcinbility to take care of some business leading things, which you don't have experience in.