Foreign investors interested in opening a company in Asia have several countries to choose from. The decision is usually taken based on the easy of the company registration, the administrative requirements related to carrying out an activity and the taxation system. All countries have their own advantages, however two of them stand out: Singapore and the Philippines. These two countries have many things in common, among which the fact that they are neighbors in Southeast Asia and they were both under foreign occupancy at some point in their history.
After establishing what Singapore and Philippines have in common, we will take a closer look at the company formation procedures in both countries through a comparison. Before starting this comparison, you should know that our company registration agents in Singapore can help you set up a business in the city-state.
The requirements for opening a Singapore company and for a company in Philippines are quite different in terms of types of entities used to do business and the capital requirements. If in Singapore the most employed type of company is the limited liability company, in Philippines the joint stock company is much more used. However, it is easier to set up a branch office in the Philippines.
In terms of share capital requirements, Singapore stands out before Philippines because it requires no minimum amount for establishing a limited liability company. In the Philippines, there are various capital requirements for setting up a business. If for a limited liability company the lowest amount accepted is 5,000 PHP, the amount increases in the case of joint stock companies and branch offices.
Foreign investors opening companies in Philippines are subject to different requirements compared to foreign investors opening companies in Singapore.
When it comes to the Singapore company formation process and the registration of a company in Philippines, foreign investors opening a company in the latter will be required to undergo several verifications unlike in Singapore where foreign enterprisers benefit from the same requirements as local ones.
The documents to be filed with the Trade Registers in Singapore and Philippines are the same: the application forms and the statutory documents. However, in order to open a company in Philippines, one must obtain clearance from the local authorities in the city where the business will operate. This step is not necessary when establishing a business in Singapore.
Overall, the company registration process in Philippines takes longer and requires more steps than the Singapore company formation process.
If you are interested in starting a business in the city-state and need assistance, please feel free to contact our company formation agents in Singapore.