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Thursday, January 7, 2016

Setting Up a Small Business in the Philippines

Philippines is a very small country of more than seven thousand islands. It's government is considered one of the most corrupt in Asia and the people just queue and complain...  Everywhere, including the processing of small - as in $500 worth of - business' permits.

There are at least a thousand and three requirements in order to legally set up and operate a $500 worth of small business. That above is an actual checklist in a small municipality for registering a new or renewing a business permit. And you get to this list after obtaining a business name. At least, registering no longer requires having an interview with all-knowing clerks (they will decide how much is your capital in setting up the business, and some other things like your projected income.)

If you happen to register a business name and will not immediately pursue your business permit and Bureau of Internal Revenue within a month (you have to complete all those forms and their agencies' requirements before getting to BIR, no different from a madman's obstacle race), then you become an instant delinquent! But BIR will not give you any idea how to get out of the delinquent stage except to pay, pay, and pay for abstracted violations and monetized penalties.

To the BIR Commissioner, All Mayors, and the Legislative Branch of the Philippines,

Do you know that we, small business owners and taxpayers, often start up small, with about a capital of P2,000 or up to P20,000 only? Buildings or shops and establishments cannot be rented out, borrowed, or which rent was only loaned. (to be continued)...