This is the latest in our handy Pull-Out-and-Keep series. We hope it will be of value.
How to Incorporate a Company in the Philippines, Whilst Avoiding DeportationAs part of this, as the title implies, we look at getting yourself legal with Immigration. Not a lot of point going through all this company malarkey, only to find yourself getting slung in chokey for a few months, before winding up thrown out of paradise, now is there?
You may think that the hardest part of all this would be dealing with bureaucracy and you’d nearly be right. It is the second hardest part, after all.
No, the hardest part is finding a lawyer who can a) advise on the intricate steps that make up the multi-departmental dance you are about to embark on, b) act as your representative on both immigration and corporate issues, with a good understanding of both and c) be trusted slightly further than they can be thrown. It helps if they have “connections” as well. You’ll see what I mean.
Over the years here I’ve had dealings with a few, both personally and via work, let’s face it, you fall over them there’s that many here (see pic below), and whilst some may be absolutely Billy Whizz at a) and/or b), most completely fail the c) test.
As an aside, when HSBC do my annual company bank account review in Hong Kong, they need some documents certifying as true copies. Fortunately, this is done for me at the same time as the annual company registration over there, as HSBC will not accept anything signed off by a Philippine lawyer. I suppose when they see this on every street corner, they may just have a point!
You’ve already been told how Madam met a lawyer down at some fiesta who happened to have worked for Immigration in the past, and as she dealt with the initial issue of getting me legal again with remarkable ease and lack of fuss, she has become my weapon of choice throughout the process. Good job too, as you’ll see.
So, the twin-track stages to regularise my stay and form a Philippine registered company are as follows. Roughly:-
1) Get expired visa sorted out by paying a fine, promising to be a good boy in future (which I intend to be!), all backed up with a facilitation fee. Got me two months reprieve and took just about ten days, via the lawyers pal there. Nice one!
2) Register the new company with Securities and Exchange Commission. We thought we could fall under the new 90% foreign owned category but sadly no, we have to have a 60% Philippine shareholding. So Madam is President, her mate is Treasurer and her mate’s boyfriend is Secretary. Fortunately, the ability to write coherently, or even at all, is not a mandatory requirement. To give you a clue of the calibre we’re dealing with here, this is what he sent when asked for a copy of a government issued I.D. Note the handwritten name!
Care to try again?
Making up the remainder of the board (minimum of 5) are me and a mate from work.
Anyway, this process took about ten days, as the lawyer has a pal there as well, and is now complete. Amazingly, the official and itemised receipt is for the exact same amount we paid. Mr D’s anti-corruption drive has obviously got this far.
The upshot of all this is that Great Eastern Railways MCS Inc., now officially exists as a Philippine entity, which means that bidding for work here, or employing Filipinos, has just got a shedload easier. It won’t do any harm on the training stuff either.
3) After SEC, obtain Mayoral Approval from Manila City Hall. This is just a tax, nothing more, nothing less. Why should good ol’ Erap give a flying anything about what I do? However, it seems I have a recluse landlady who refuses any contact, but whom I need to sign a letter giving permission to use my address as a registered office. After nearly a week of failing to talk, this has come to a head this morning with the lawyer saying, “We have no time left, so if we can’t go through the problem, we’ll go around it. I’ll get my friend to arrange something with City Hall, okay.” And we all know what that means, don’t we children?
4) Mayoral Approval pending, this then triggers the ability to apply for an Alien Work Permit (AWP) from the Department of Labor (sp) and Employment, yup, DOLE. This is not to be mistaken for a visa of any kind; it’s merely a, well, merely a…Oh I give up, but I need one before I can apply for my nice shiny 9G visa and I need it quickly.
I know it has no use, but of course it’s not free! Have you not been listening?
5) Register the company with BIR (or Bureau of Revenue, aka, the taxman). Pretty straightforward and should be done by this week as it was only dependent on step 2) being complete. No rush, so no “extras’ either, but the promise of years of expense avoiding jousting to follow.
6) Upon receipt of 4) we can then apply for the 9G visa. This is a two year, multi-entry, easily renewable, working visa and, being in my name, doesn’t tie me to a particular project and gives me the freedom to leave this one, should I choose. Next time, I can renew for five years.
It also means that the bi-monthly trips to immigration for renewals is at an end. Actually, to be picky, they came to an end in January 2017, hence having to pay a fine and facilitation fee!
On top of that, my pal, or should I say, fellow Director, who currently has a visa in the client’s name, now has a vehicle to apply for his own 9G as well.
And the reason we are in a rush for 4)? Well, I need to have my passport into the visa process before the 22nd August, which is when my current, but temporary, visa expires. The landlady was holding up the City Hall bit, which in turn meant I couldn’t apply for the AWP and without this, I can’t start the visa process. See the problem?
Finally, once I’ve completed all the steps, I can open a company bank account an’ Bob’s yer uncle.
Anyway, we expect 3) tomorrow, following a slight negotiation, and 4) will start thereafter. The clock’s ticking and we’ve got 3 public holidays in the next two weeks!
Once this is all done, I'm 100% legal, above board and can relax and get on with what I do best (?).
So, should any of you have need for a lawyer here in the Philippines, give me a shout and, for a facilitation fee, I’ll put you in touch with a good 'un!
There's more steps in the Philippines!
