Business Administration in the Philippines

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
The Corporation is a joint-stock company.
 
 

No minimum. 25% must be subscribed.
25% must be released at the incorporation.
Minimum 5 shareholders, maximum 15. A Majority of shareholders have to be Philippine residents. No maximum after the constitution.
 
 
Liability is limited to the amount contributed.
0.1% of the capital amount, with a minimum of PHP 200 and a maximum of PHP 100 000, that is to say USD 3,850 .
A Closed Corporation is a closed joint-stock company
 
 

No minimum. 25% must be subscribed.
25% must be released at the constitution.
Maximum 20
 
 
Liability is limited to the amount contributed.
0.1% of the capital amount, with a minimum of PHP 200 and a maximum of PHP 100 000, that is to say USD 3,850 .
Sole Partnership is a single-member company
 
 
No minimum capital.
Only 1 person
 
 
Liability is unlimited.
About PHP 110.
General Partnership
 
 
No minimum capital.
Minimum 2 partners
 
 
Liability is unlimited.
About PHP 110.
Limited Partnership
 
 
No minimum capital.
Minimum 2 partners
 
 
Liability is limited to the amount contributed.
About PHP 110.
 
Business Setup Procedures
The procedure of registration of a company with foreign participation varies according to its legal form. A single-member company should be registered at the BTRCP ( Bureau of Trade Regulation and Consumer Protection) linked with the DTI ( Department of Trade and Industry). A Public Limited Company or a Limited Liability Company should be registered at the SEC ( Securities and Exchanges Commission).
The Competent Organization
The Securities and Exchange Commission (SEC).

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Working Conditions

Legal Weekly Duration
8 hours/day, 40 or 48 hours/week.
Retirement Age
60
Working Contracts
Employment contracts are regulated by legal clauses and to a lesser degree by collective agreements and individual negotiations.
The terms of employment contracts are extremely rigid.

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Cost of Labor

Minimum Wage
Varies depending on the region and the position occupied,  between P200 (USD4) and  P350 (USD7) a day.
Average Wage
The minimum wage is determined at the regional level by the Regional Tripartite Wages and Productivity Board.
Social contributions
Social Security Contributions Paid By Employers: 5.6 %. Maximum 1 060 PHP/month. For further details, see here.
Social Security Contributions Paid By Employees: 3.76 %. Maximum 500 PHP/month. For further details, see here.

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Social Partners

Social Dialogue and Involvement of Social Partners
The two main groups of trade unions are TUCP and FFW. They are affiliated to the international Confederation of Free Trade Unions (ICFTU ) and to the Worldwide Confederation of Labour ( WCL).
Unions
Federation of Free Workers.
Kilusang Mayo Uno
Unionization Rate
5% of workers are unionized.
Labor Regulation Bodies
Bureau of Labor and Employment Statistics (BLES)
Department of Labor and Employment

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