A lot of people are talking about the Philippine venture as one of the best uses of the service of a sole proprietor or a limited liability partnership (LLP). This has given birth to new ideas that will pave the way for more potentials in this country. In the past, only the rich and the elite are the ones who had the capacity of buying properties and developing them. But with the growth of the entrepreneurial spirit in the Philippines, the holding company has become a necessity. Business owners have the ability to expand their investment and earn bigger returns by using their investments for the benefit of their company.
With the passing of time, the government has been encouraging the growth of businesses and has even provided them with enough fiscal support so that they can go ahead and achieve their commercial goals. One of the essential things needed by any business entity is its location. And in terms of the Philippines, the best locations are under the hands of the local governing authority. The best areas to put up a business in terms of earnings are the urban centers because of the proliferation of both employment opportunities and business opportunities in these areas. These urban centers have their own share of tax incentives that come as the blessings from the government.
Aside from the low corporate income tax rate and other incentives offered by the government, the infrastructure available in the Philippines is also among the best uses of a sole proprietorship or a limited liability partnership. Most of the metropolitan cities in the Philippines are well-developed cities where infrastructure such as roads, drainage system, water supply, electrical wiring, and other necessities are already in place. The government also has a plan to develop the agricultural and other productive assets in the Philippines. A majority of these assets belong to private individuals and groups. This explains the low corporate income tax rate in the country.
An important aspect of the Philippines’ business scenario is the presence of foreign multinational corporations. Foreign companies prefer to invest in the Philippines because of the Philippines’ favorable legal system and other factors that make it conducive to business. One of the best uses of a sole proprietorship is to hold company shares in a foreign corporation. Holding company shares in a foreign subsidiary is one of the ways of increasing the revenues of a specific company.
Another of the best uses for a Philippine limited liability company or an S-corp is the establishment of a foreign direct investment company or FDI in the country. Under this scheme, a foreign direct investment company is allowed to form a partnership with a Philippine company. This is one of the easiest ways of increasing the revenues of a specific company. A foreign direct investment company can increase the revenues of a company by investing on its shares in the stock market. However, this scheme is only beneficial to companies with at least ten thousand dollars in capital.
Finally, another one of the best uses for a Philippines business is to form a corporation with a foreign representative office. Under this scheme, a Filipino company gains the services of a foreign representative who will act as its representative in negotiations with other companies. The benefits of having a foreign representative office include having regular access to government authorities and a regular chance to meet important government officials. Forming a corporation with a foreign investment firm can also help increase a company’s credibility in the eyes of investors.