ABOUT PHILIPPINES

 Amongst all the countries in Southeast Asia, the Philippines, officially the Republic of the Philippines, is an archipelagic nation located in the Western Pacific Ocean. It is known for its stunning natural beauty, rich cultural tapestry blending indigenous, Spanish, and American influences, and its resilient, democratic history. With a rapidly growing economy and a young, English-speaking population, the Philippines is a dynamic emerging market. The capital of the Philippines is Manila, a densely populated city that is the center of the country’s economic, political, social, and cultural activities. Quezon City, also part of the expansive National Capital Region (Metro Manila), is the largest city by population. According to the World Bank, the Philippines is classified as a Lower-Middle Income Economy, with aspirations to achieve Upper-Middle Income status in the near future.

The currency of the Philippines is the Philippine Peso (PHP). As of today’s exchange rates (June 2025), 1 Indian Rupee is approximately 1.53 Philippine Pesos. The population of the Philippines is estimated at approximately 119 million in 2024. As an archipelagic nation, it shares maritime borders with Taiwan to the north, Japan to the northeast, Palau to the east, Indonesia and Malaysia to the south, and Vietnam to the west. Its extensive coastline borders the South China Sea, Philippine Sea, Sulu Sea, and Celebes Sea. The official languages of the country are Filipino (based on Tagalog) and English. English is widely used in government, education, business, and daily communication, making the Philippines one of the largest English-speaking nations. The dominant religion is Catholicism, reflecting its long Spanish colonial history, alongside significant Muslim communities in the southern regions and other Christian denominations. The main international airports are Ninoy Aquino International Airport (MNL) in Manila, Mactan-Cebu International Airport (CEB), and Clark International Airport (CRK) north of Manila. Major commercial seaports include the Port of Manila, Batangas Port, Cebu Port, and Davao Port, which are crucial for domestic and international trade.

The standard corporate income tax rate in the Philippines is 25%. However, a lower rate of 20% applies to domestic corporations with net taxable income not exceeding PHP 5 million and gross sales not exceeding PHP 100 million. The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, enacted in 2021, significantly reformed the country’s investment incentives regime. Under CREATE, qualified registered business enterprises (RBEs) engaged in preferred activities (listed in the Strategic Investment Priority Plan) and located in economic zones or freeport zones can avail of an Income Tax Holiday (ITH) for 4 to 7 years, followed by a Special Corporate Income Tax (SCIT) of 5% on gross income earned in lieu of all national and local taxes, or an Enhanced Deductions (ED) scheme for 10 years. These incentives aim to attract high-value investments in strategic sectors. The Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) are the primary government agencies responsible for promoting investments and administering incentives. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in the Philippines has become more attractive due to recent economic reforms and robust growth. The government is actively working to improve the ease of doing business through digitalization and streamlining processes. The Foreign Investments Act generally allows 100% foreign ownership in most sectors, with certain restrictions in areas listed in the Foreign Investment Negative List (e.g., mass media, retail trade with low capitalization, and some professions). The most common legal forms for foreign investors include establishing a domestic Corporation (a Private Limited Company equivalent), a Branch Office, or a Representative Office. Investors can leverage the presence of special economic zones (PEZA zones) which offer ready infrastructure and additional incentives for export-oriented and IT-BPM companies.

In case an investor is planning to establish a Corporation or a corporate business setup in the Philippines, Opesh Group will be helping you in taking the right decision for setting up your business in the Philippines and we will also guide you about how to follow the procedure while formulating your company in the Philippines.

Types of Business which can be started in the Philippines:

• Information Technology-Business Process Management (IT-BPM): The Philippines is a global leader in BPO and IT-enabled services, including call centers, back-office support, animation, game development, and software development, driven by a large, skilled, English-speaking workforce.
• Electronics & Semiconductor Manufacturing: This sector remains the backbone of Philippine exports, offering opportunities in assembly, testing, and packaging (ATP) of semiconductors and other electronic components.
• Infrastructure Development: Under the “Build, Better, More” program, there are significant opportunities in developing transportation (roads, railways, airports, seaports), energy, and social infrastructure projects.
• Tourism & Hospitality: With its beautiful islands, beaches, and diverse cultural attractions, the Philippines offers immense potential in resort development, hotels, and tourism-related services.
• Renewable Energy: Abundant resources (geothermal, solar, wind, hydro) and policy support for clean energy present opportunities for power generation projects.
• Agribusiness & Food Processing: Investment in modernizing agriculture, aquaculture, and value-added processing of high-demand agricultural products (e.g., coconut, fruits, seafood).
• Healthcare & Pharmaceuticals: Growing demand for quality healthcare and potential for local manufacturing and distribution of pharmaceutical products.

Advantages of Starting Business in the Philippines:

• Strong Economic Growth: One of the fastest-growing economies in Southeast Asia.
• Large, Young, and English-Proficient Workforce: Highly competitive labor pool, particularly for services and manufacturing.
• Strategic Location: Gateway to the ASEAN market and East Asia.
• Investment Incentives: Attractive tax holidays and other benefits under the CREATE Law, especially in PEZA zones.
• Robust Domestic Demand: A large and growing consumer market driven by remittances from overseas Filipino workers.
• Liberalized Foreign Investment Policies: Generally, 100% foreign ownership is allowed in many key sectors.

Imports & Exports: The Philippines has a diverse trade portfolio, with electronics dominating its exports. The country is also a significant importer of raw materials and capital goods to support its manufacturing and infrastructure development.

Major items which are exported from the Philippines:

• Electronic products (semiconductors, electronic data processing)
• Other manufactured goods
• Machinery and transport equipment
• Agricultural products (e.g., coconut oil, fruits)
• Mineral products (e.g., copper concentrates, nickel ore)
• Ignition wiring sets
• Woodcraft and furniture

Major items which are imported in the Philippines:

• Electronic products
• Mineral fuels, lubricants, and related materials
• Machinery and transport equipment
• Food and live animals
• Iron and steel
• Chemical products

Major items traded between the Philippines and India (as of 2023-2025 data):

• Exports from the Philippines to India: Primarily electronic components, chemicals, certain agricultural products (e.g., copra), and machinery parts.
• Imports in the Philippines from India: Pharmaceutical products (major item), automotive parts, machinery, iron and steel, organic chemicals, meat, and rice.

Manufacturing: Manufacturing is a significant contributor to the Philippine economy, driven primarily by the electronics and semiconductor industry, which accounts for over 50% of the country’s total merchandise exports. Other key manufacturing sub-sectors include food and beverage processing, chemicals, pharmaceuticals, garments, and automotive assembly (with Japanese automakers having a strong presence). The sector is increasingly focusing on higher-value and more sophisticated products to move up the global value chain.

Mining: The Philippines is highly mineralized, with significant reserves of gold, copper, nickel, and chromite. It is one of the world’s largest producers of nickel ore. Despite its vast potential (estimated at over USD 1 trillion in untapped reserves), the mining industry faces challenges from environmental regulations, community opposition, and policy inconsistencies. The government is working to balance economic development with environmental protection, making it an evolving sector for investment.

• GDP = $471.5 billion (nominal, 2024 est.) / $497.5 billion (nominal, 2025 est. IMF)
• GDP Growth = 5.7% (2024 est.), 5.5% (2025 forecast – IMF/World Bank)
• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. In its last edition (2020), the Philippines ranked 95th out of 190 economies, showing significant improvements from previous years, particularly in areas like getting credit and protecting minority investors. Efforts to streamline business processes continue.
• GDP per Capita = $4,130 (nominal, 2024 est.) / $4,350 (nominal, 2025 est. IMF)

Thanks for reading this Article. Watch our Video and know more about the Philippines. For any Business Enquiry Join Millionaire Program and change everything in life and Business.. Call/ WhatsApp +91- 8094607111.