Philippinen

• 1. Landesinformation
• 2. Ankunft und Leben im Heimatland
• 3. Beruf und Existenzgründung

3. Beruf und Existenzgründung

Labour Market, Job Reintegration, Regulation of Labour, Setting Up a Business, Bank- and Credit-System

Labour Market

Labour market situation

The National Statistics Office projects an annual average of 850,000 new entrants to the labour force in the Philippines between now and 2010. The unemployment rate was 8.7 % as of July 1998. The number of local placements in the Philippines rose in 1997 and 1998, while overseas placements decreased slightly. Shown below is the Philippine labor statistics for 2000 and 2001:

Philippine Labor Statistics, 2001-2002

Source: National Statistics Office, Labor Force Survey

Decline of work

The number of workers in about 20 occupational groups declined or didn't grow in the last six years, even as overall employment went up by nearly 5 million. According to recent labor force surveys of the National Statistics Office (NSO), at least 21 occupational groups have either suffered declines or failed to grow over the past six years. These include the following:

• Topping the list are fishermen and hunters, whose numbers fell by a whooping 129,000. In 1993, there were 1.27 million persons belonging to the group. It's down to only 1.15 million in 1999
• Miners, quarrymen and drillers are the second biggest occupational group to suffer a reduction in numbers. Their ranks fell by 35,000 from 93,000 to only 58,000 during the six-year period
• Next in line are certain types of service workers (29,000), forestry workers (16,000); and laborers (10,000)
• Other occupational groups whose ranks also declined (but only by 1,000 to 4,000) included jewelry and precious metal workers; housekeeping and related service workers; tobacco preparers and blenders; spinners, weavers, knitters and dyers; mail clerks and messengers; social scientists; glass formers and potters; and farm managers and overseers.

Other jobs did not go down but they didn't grow either. These included aircraft and ship officers; life scientists; religious workers; production supervisors and foremen; tanners and pelt pressers; stone cutters and carvers; and rubber and plastic product workers.

Updates on Job Vacancies/Placements, Overseas Deployment And Job Displacement (Jan-May 2002)

Note: includes job facilitation through PESO and Jobs Fair
Sources:
Bureau of Local Employment
Statistical Performance and Reporting System (SPRS)
Philippine Overseas Employment Administration
Establishment Termination Reports submitted by employers to DOLE Regional Offices

New jobs

Bulk of the new jobs created during the six year period were still in production, which rose by 1.38 million; in sales, which grew by 902,000; and in services, which went up by 901,000. But jobs that required higher levels of education and training also went up significantly. For example, professionals, technical and related workers grew by 305,000 while administrative, executive and management workers went up by 254,000. Their combined increase of 559,000 was more than the 270,000-increase in clerical jobs and even the 527,000 growth in agricultural jobs.

Following are details on how specific job categories performed:

• Among professional and technical workers, teachers posted the biggest increase of 97,000. There are now 817,000 teachers compared to only 720,000 six years ago. Health workers, including veterinarians, followed suit, growing by 76,000. Architects and engineers also expanded rapidly, by 41,000. Other professional jobs that posted increases of more than 1 0,000 during the six-year period included mathematicians, statisticians and systems analysts; and justices, judges and lawyers;
• The ranks of managers expanded by 140,000. There are now 365,000 managers and supervisors compared to only 325,000 in 1993. Legislative workers and government administrators, on the other hand, went up by 114,000 to 232,000 from 118,000;
• Among clerical workers, the fastest growing groups were bookkeepers and cashiers, whose ranks grew by 82,000; secretaries (49,000); and computing and machine operators (31,000);
• Among sales workers, salesmen and shop assistants grew by the most, posting an increase of 394,000 while the number of working proprietors of retail or wholesale establishments went up by 288,000. The ranks of sales supervisors and buyers, on the other hand, went up by 103,000;
• Among service workers, helpers posted the biggest growth of 292,000. They were followed by officers of the armed forces (1 63,000); and by cooks, waiters and bartenders (109,000);
• Among agricultural workers, those engaged in animal husbandry posted the biggest increase of 415,000. They were followed by farmers, whose ranks went up by 257,000;
• Among production workers, the biggest increase was recorded in the ranks of transport equipment operators, which rose by 604,000. They were followed by bricklayers and carpenters (322,00); and by electrical and electronic workers (155,000)

Job Reintegration

Integration into Employment

While searching a job there are no subsidies and no insurance coverage.

Contact Points for Information

Department of Labor and Employment (DOLE)
Gen Luna St., Intramuros, Manila
Tel.: (0632)-527-3516
Website: http://www.dole.gov.ph

Processing of Application

Application Papers

• The application papers should include at least a resume and a cover letter.
• The papers should address the specific needs of the wanted position.
• The papers should be concise but informative and to the point.
• The information in a resume should be organized under specific headings such as education, work experience, honors, skills and activities.
• The cover letter should be limited to one page.
• Depending on the requirement of the recruitment agency or the employing firm, the other papers needed for submission may include a picture of the application, school credentials (diplomas, transcript of records), certificate of employment, training certificates, letter of reference from previous/current supervisors, police clearance, etc.
• Electronic resume via the internet is becoming increasingly popular because it is fast, effective and convenient.

Creating A Resume

Writing resumes is fundamentally a marketing act. It's a way to advertise yourself and stand out in the marketplace crowd of similarly competent, qualified workers. Forget about being modest. As career specialist J. Michael Farr, writing in the online magazine http://www.VidBook.com, says, "Your resume is no place to be humble." Here's a 12-step guide to constructing a professional resume that gets your foot in that all-important door.

Gather your materials. Begin by putting everything down on paper – contact details, work history and accomplishments, academic background, seminars attended, honors received, skills and proficiencies, personal details, etc. Make sure that nothing major, substantial, or relevant is left out. Pay particular attention to dates and places, e.g., periods of employment – as mistakes in these areas may leave an impression of sloppiness.

Start with your name and contact details. Your contact information should come right at the top of the resume after your name for easy and convenient reference by the reader. Include all possible contact details: postal address, landline and mobile phone numbers, fax numbers, and e-mail address. The last one is particularly important, because in these tech-savvy times, an email address shows that you are, at the very least, computer literate.

State a job objective. A well-developed job objective statement "can be a useful way of demonstrating yourself to be a focused individual." If responding to an advertisement, the job objective can be as simple as the position title (e.g., "Finance Manager"). But if aiming to keep your options open for other positions within a broad range of expertise, you can write a more general description of the work and corporate environment you want to focus on (e.g., "To apply my extensive experience in finance and administration to senior management positions in a highly motivated, forward-looking multicultural company"). Beware of generic objectives such as "employment in a position commensurate to my qualifications" or "to secure a regular position."

Write a brief summary of qualifications. An upfront concise summary of the applicant's qualifications is very much appreciated by the prospective employer. The summary of qualifications should include:

• number of years of professional experience
• areas of expertise and career highlights (e.g., "at 26, youngest officer promoted to manager in bank history")
• unique skills and competencies (e.g., "part-time financials instructor at the SAP Academy")
• other information underlining your particular qualifications for the job
• The summary's task is to make your credentials a cut above the rest. But make it brief; two or three sentences should do.

Lead with your professional experience. Unless a new graduate, you should begin the body of your resume with an outline of your employment history, starting with your most recent work. List down all the jobs you've had, the company names, dates of employment, titles and responsibilities. A fairly straightforward rundown of your professional experience emphasizes a strong and consistent work history. A choppy one, on the other hand, where you jump from one company to another within fairly short periods, or have unaccounted pockets of unemployment, will inevitably lead to questions about your work ethic, your sense of stability, company loyalty, etc. That's why it's best not to leave a gap. Account for everything, even for time spent outside of professional work (e.g., "1990-1993-Full-time parent," or "1998-1999 – Study and travel").

Highlight concrete achievements. When describing your professional experience, don't just enumerate your job responsibilities. A comprehensive job description will only pad up your resume; save it for the interview. Instead, emphasize any major accomplishments you had chalked up in the job. Use numbers, figures, percentages, if possible. Recommended words to use are those active verbs that described the applicant as a results-oriented, dynamic individual, such as "accomplish, achieve, analyze, delegate, establish." Describe your job in the active, not the passive voice.

Emphasize your educational preparedness. If a new graduate with no professional experience, lead with your academic background, honors, and extra-curricular activities. Potential employers understandably give hiring priority to young people who have more or less proven themselves in academic tasks and school-related activities. Positions of responsibility in extra-curricular and community organizations are also reliable indicators of leadership and social interaction skills. Your educational background should always be positive and purposeful, to encourage the thinking that you are well prepared for the rigors of the corporate world. Include special skills and competencies. This is important, particularly in a highly competitive knowledge-based industry such as IT. In your resume, include the titles, dates, venues, and agenda of all your training activities and further education, whether formal or informal. Begin with the most relevant seminars. Be specific. If you are fluent in more than one language, mention that fact too.

Either include references – or don't mention them. There are two schools of thought on this: One says it's necessary to include references. The other says this only lengthens the resume, and should therefore be available in another sheet of paper only upon request. It is, however, advised against using the standard "References upon request" line. "it's either you mention references, or none at all," he says. "What's the point of putting in a header for 'References' only to say 'Available upon request? But if you do include references, include as well their complete contact details-especially telephone numbers and email addresses, and, also the best time to get in touch with them.

Use personal details sparingly. In the US where job-discrimination laws are wide ranging and explicit, "a potential employer has no legal right to request information about age, sex, race, religion, marital status, health, physical appearance, or personal habits," explains Such statutes have yet to find root locally, but it is best to leave out as much extraneous (read: personal) information as possible from your resume, to free up limited space. These include names and occupations of parents, hobbies and interests, birthplace, etc. Reserve them for the interview proper.

Be concise. Resumes are often read in 30 seconds or less so be brief, straightforward and to the point. Use bullet points to underscore important information. Employ paragraph breaks, lines, and numbers. A standard resume should be no more than two pages – three at most if you have extensive professional experience. Beyond that, your resume needs serious editing.

Proofread. There should be no typographical or spelling errors in your resume. When using numbers, re-check decimal places or the number of zeros. Punctuation and date formats should be consistent. For example, if you write "2 February 2000" in one section, don't write "March 5, 2000" in another.

Make it an easy read. Your resume should also be visually appealing; a carelessly printed, sloppily designed resume will reflect disastrously on you. 'Thus, make it easy on the eye with lots of white spaces, a font no smaller than 10 in size, and at most two conservative typestyles (such as Times New Roman or Garamond). Underlined and bold text should be used sparingly – only to highlight significant information or to indicate section breaks. Another crucial point: Use a laser printer. With cheap laser printing services available even in neighborhood computer shops nowadays, there is no excuse for jet ink-printed resumes, which easily smudge or run off. Make sure that the printing is even, with no stray marks, splotches or blurred letters. Finally, use only high-quality bond paper – either white or off-white. Don't experiment with flashy colors such as blue or green, or with fancy graphics and visuals; stick to the simple and straightforward.

Usual Procedure of Application

Instructions on how to file the applications are usually given in the advertisements, whether in print media or in the internet. In the Philippines, resume are always asked from applicants. Resumes are often submitted with covering letters and pictures of the applicants. Once applications are received, the employers or employment agencies check the papers submitted for compliance to documentary requirements. After that a screening of applications qualifications to the job requirement is conducted. Those who qualified are contacted for interviews.

A lot of companies and job placement agencies are now requiring interested jobseekers to e-mail resumes with scanned pictures.

Usual Procedure for Job Interview

During the interview, the respective expectations of the applicant and of the employer are discussed and clarified. There are several interviewing methods:

• Screening interview – this filters out unqualified applicants and is usually conducted by a human resource professional. The screener will scrutinize the applicant’s resume facts, uncover salary expectation, probe for undisclosed work background problems, and generally look for clues to eliminate the applicant.
• One-on-one interview – after passing the screening interview, the applicant may find himself or herself face-to-face with the actual decision-maker. Here, the interviewer wants to know not just the facts, but whether the applicant is indeed the one the company need.
• Telephone interview – this is not so common in the Philippines.
• Stress interview – conducted as a deliberate attempt to see the applicant’s reaction to uncomfortable situations. The applicant may be made to wait needlessly long before the interview, asked sarcastic questions, subjected to long silences or icy stares, etc.
• Behavioral interview – previous behavior is used to predict future performance. The candidate is asked to recall and describe past situations that required him to apply time management, teamwork, leadership or conflict-resolution skills.
• Group/panel interview – It is used to gauge the candidate’s reaction under pressure of dealing with different personalities.

Frequently Asked Questions

• Tell me about yourself.
• What do you consider to be your greatest strength and weaknesses?
• Why did you leave your job?
• Why did you apply for this job?
• Why should the company hire you?
• What can you say about our organization?
• What are your salary expectations?

Job Advertisements

Sources of Employment Listings

Newspapers

In the Philippines, the most common source of information for job vacancies and opportunities is the classified ads of newspapers. The three most widely read classified ads are of the following dailies:

• Manila Bulletin
• The Philippine Daily Inquirer
• Manila Times

Internet

Another source of employment listings, which is gaining popularity, is the internet. Aside from international web-sites, there a couple of big web-sites managed by local companies that list details of existing vacancies. Some of these web-sites/pages are:

• http://www.jobsonline.com.ph
• http://www.jobmarketonline.com
• http://philippinejobs.ph
• http://www.philrecruit.com
• http://www.addcareers.com
• http://www.webphilippines.com
• http://www.accenture.com
• http://p.jobstreet.com/
• http://www.idonovan.com/ph
• http://jobsearch.monster.com.ph/
• http://www.PH.CareerVenue.com
• http://jobs.escapeartist.com/Openings/Philippines
• http://www.filipinolinks.com/Business/Job_Opportunities/
• http://www.traceplacement.com.ph
• http://www.ipams.com
• http://www.staffhouse.com
• http://philippinejobs.ph
• http://www.pinoyhotjobs.com
• http://www.jobsnow.batcave.net
• http://www.jobsdb.com.ph
• http://www.aimsph.com
• http://www.johnclements.com
• http://www.workabroad.ph

Cellphone Messaging

Jobseekers can also search for vacancies through cellphone text messaging. Example:

• To find a job: Type "JOB", then send to 288 or 2333 depending on the cellphone communication company.
• To search for specific job: Type "JOB FIND Type of Job" , then send to 288 or 2333 depending on the cellphone communication company.

Other Sources

• Job fairs, which are usually organized and supervised by the government’s Department of Labor and Employment (DOLE), are good venue for job seeking.
• Recruitment agencies
• Personal networks
• Advertisements in campuses.

Job Announcements

The usual practice is to post job openings in classified ads of leading daily newspapers. The average cost for the advertisement is about P 200 (approx. 3,30 Euro) per centimeter length of a 3 centimeter-width column of ads. The three leading newspapers are

• Manila Bulletin
• The Philippine Daily Inquirer
• The Manila Times

Posting in on-line jobs classifieds in the internet is also effective, particularly in looking for professional and managerial positions.

Employment Agencies

Public Agencies

Department of Labor and Employment (DOLE)
Gen Luna St., Intramuros, Manila
Tel.: (0632)-527-3516
Website: http://www.dole.gov.ph

Services

• Employment enhancement through networking with Local Government Units, State Universities, and Non-Government Organizations
• Computerized job-matching system (Phil-JOBNET)
• Overseas employment program
• Human resource development program
• Maritime training program
• Labor standards enforcement program
• Promotion of youth development through training and livelihood assistance
• Program against child labor
• Gender and development in labor
• Occupational safety and health program
• Wage setting
• Employment compensation program

Fees: Generally services are for free

Philippine Overseas Employment Administration
Ortigas Avenue corner EDSA, Mandaluyong
Tel.: (0632)-722-1142 to 99
Website: http://www.poea.gov.ph

Services and functions

• Accreditation of recruiter’s local principal.
• Verification and approval of job orders.
• Processing of employment contracts.
• Issuance of overseas employment certificates.
• Development of employment standards.
• Provision of welfare assistance services to overseas contract workers and their families.
• Conducts pre-employment as well as pre-departure orientation seminars.
• Maintains a manpower registry.
• Monitors performance of licensed recruitment agencies.
• Assistance of victims of illegal recruitment.

Fees: For processing of job applications and related services the fee ranges from P 100 (approx. 1,70 Euro) to P 250 (approx. 4,20 Euro).

Private Agencies

The processing fees differ with each agency and on the job being applied for. These agencies collect one-month salary as placement fee when the applicant is employed.

A list of all private employment agencies operating in the Philippines can be found at the
Philippine Overseas Employment Administration
EDSA cor Ortigas Ave. Mandaluyong City
Website: http://www.poea.gov.ph

Resume Deposit and Retrieval Database System

The resume deposit and retrieval database system, whether by on-line transmission of the resume through the Web or by personal submission, is being practiced by many recruitment companies and agencies, even by the government-run Philippine Overseas Employment Administration (POEA). A recruitment agency maintains a pool of jobseekers for various possible employment opportunities. Should there be employers needing for a specific position, the resumes will be assessed for pre-qualification. The pre-qualified applicants will be called for interview.

Direct Contact to Companies

If a recruitment agency is commissioned by an employing company, direct contact with the prospective employer (company) is often possible.

Although direct contact with the prospective employer is sometimes possible, the applicants will still be advised to submit applications papers to the recruitment agency for centralized screening.

Regulation of Labour

Working hours, Holidays and Vacations

The Labour Code prescribes a regular working week of 40 hours. In some sectors (for example, the manufacturing sector), the work week consists of 44 to 48 hours. Workers must receive one day of rest after six consecutive working days.

The Philippines has 10 legal or regular non-working holidays, and employees are entitled to be paid their regular daily wage on these days (see Overtime and Holiday Pay). Employees with at least one full year of service are entitled to at least five days leave with pay each year. The standard practice, however, is to give two weeks of paid vacation and allow two weeks of paid sick leave each year.

Termination of Employment

Regulations require that employers notify the Department of Labour and Employment one month in advance of the termination of their employees’ services. A worker dismissed because of installation of a labour-saving device is entitled to separation pay equivalent to at least one month’s wages for each year of service. In cases of retrenchment to prevent losses or closure, or in the case of cessation of operations not caused by serious business losses or financial reverses, the worker must receive separation pay equal to one-half month’s pay for every year of service or one month’s pay, whichever is higher.

Labour Relations

Labour relations in the Philippines benefit from clear-cut government policies, effective enforcement of labour laws and improved management-labour relations as companies become accustomed to collective bargaining, as encouraged by the Wage Rationalisation Act.

Although massive lay-offs followed the economic slowdown that occurred in the wake of the Asian currency crisis and provoked an increased number of strikes in 1997, the year was generally positive for labour relations. Of the total 93 newly declared strikes, 70 were settled, which represents a 10 % increase in the rate of settlement from 1996.

Trade Unions

Most trade unions are in the manufacturing sector. The three major labour federations are the Federation of Free Workers, the Trade Union Congress of the Philippines and the Kilusang Mayo Uno (May 1st Movement).

Overtime and Holiday Pay

Overtime pay for work done on a regular workday is 25 % greater than the regular wage. Employees who work on a scheduled rest day, a Sunday or a special holiday (now called special days, these holidays are All Saints’ Day and the Last Day of the Year) are entitled to compensation at a rate of 130 % of their regular wages. Employees who work on a scheduled rest day that is also a special holiday are entitled to compensation at a rate of at least 150 % of their regular wages.

All employees, except those employed in retail and service establishments, are paid their regular daily wages during regular holidays. Executive Order No. 203 lists 10 regular holidays: New Year’s Day, Maundy Thursday, Good Friday, Araw ng Kagitingan, Labour Day, Independence Day, National Heroes Day, Bonifacio Day, Christmas Day and Rizal Day. Employees required to work on these holidays are entitled to compensation equivalent to twice their regular wage rate.

Overtime premium is allotted for work exceeding the maximum prescribed period. The OT rates per hour for overtime work rendered on the specified days:

Night-Shift Differential Pay

Night-shift employees must be paid a differential of not less than 10 % of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m.

Wages

Republic Act 6727, also known as the Wage Rationalisation Act, changed the system and procedure for fixing minimum wage rates. The Act, which amended the Labour Code, shifted the scheme for establishing the minimum wage rate from a national to a regional basis by creating regional Wages and Productivity Boards. In addition, the Act promotes collective bargaining as the primary mode of settling and adjusting wage rates.

Labour costs in the Philippines are relatively low. According to the 1997 Third Quarter Report of the BSP, daily wage rates in the agricultural and non-agricultural sectors in the National Capital Region improved in nominal and real terms during the quarter. Nominal daily wage rates in the agricultural sector increased to P 180.92 and P 171.71 for the plantation and non-plantation subsectors, respectively, from the previous year’s P 167.92 and P 156.54. In real terms, the daily wage rates increased to P 81.13 and P 64.62 for the plantation and non-plantation subsectors, respectively, from P 67.70 and P 63.11. In the non-agricultural sector, the nominal daily wage rate increased to P 200.42 during the third quarter of 1997, from P 178.75 during the same period in 1996. In real terms, the daily wage rate in the non-agricultural sector increased to P 75.43 from the comparable figure of P 72.07 in 1996.

Minimum Wage (Manufacturing Sector)

The minimum wage rate for agricultural and non-agricultural workers in every region are determined by the Regional Tripartite Wages and Productivity Board. The minimum wage rates by Region (non-agricultural jobs) as of CY 2000 are as follows:

Note: Minimum wage ranges are provided in as much as rates vary from province to province within each region. Further salaries and wages The following shows the average monthly salaries of selected executive and non-executive positions in the manufacturing sector.

Corporation (Manufacturing Sector)

Professions (Non-Manufacturing)

Source: Asiaweek

Thirteenth-Month Salary

Presidential Decree 851 made the annual payment to employees of a thirteenth-month salary compulsory. This payment may include Christmas or mid-year bonuses, profit-sharing privileges and other cash bonuses. Presidential Decree 1364 abolished the exemption of financially distressed companies from paying the additional monyh’s salary.

Parental Leave

Republic Act 7322 of 1992 increased the maternity benefits of women workers in the private sector. Subject to certain conditions, a covered female employee of the SSS is paid a daily maternity benefit equivalent to 100 % of her present basic salary, allowances and other benefits for 60 days, which may be extended to 78 days in case of caesarian delivery. This benefit is available not only for childbirth but also for abortion or miscarriage.

Employee Benefits

The cost of fringe benefits normally equals approximately 30 % of employers’ monthly salary and wage expenses.

Social Security

The Social Security System (SSS) was created to provide private employees and their families with protection against the hazards of disability, sickness, old age and death. To ensure that employees obtain these benefits, employers are required to become members of the SSS from their first day of business operations. All private employees, including resident foreign employees, are compulsorily covered from the date of employment.

Standard social security benefits include disability pension, retirement pension, a funeral benefit of P 12,000, sickness allowance, and maternity and paternity leave, and miscellaneous loans of uP to P 10,000.

Republic Act 8282, passed 1 May 1997, amended the Social Security Law. Under the Act, which is effective from 24 May 1997, the maximum monthly salary credit, previously set at P 9,000, is to increase by P 1,000 every year until the maximum of P 12,000 is reached in 1999.

Health Insurance

Medical care, which is automatic and compulsory for SSS members, is supported by monthly employer and employee contributions amounting to P 31.25 per employee. The benefits include medical-care allowances for hospitalization, surgery, medicine and doctors’ fees at amounts and rates set by the Philippine Medical Care Commission.

Contribution to National Health Insurance Program (NHIP)

As mandated by R.A. 7835 on Medicare Program which is administered by the Philippine Health Insurance Corporation (Philhealth), both employers and employees are to contribute for the medical insurance/benefits of hte employees in accordance with the following schedule effective January 1, 2001:

Note: Payment of monthly premium contributions for public and private sector employees is on or before 10th of the month following the applicable month through nearest Philhealth Accredited Collecting Banks (ACB'S)

Setting up a Business

Advise, Information and Resources

Contact points

• Department of Trade and Industry
  DTI Bldg Makati
  367 Sen.Gil J. Puyat
  Makati 1200/Philippines
  Tel.:890-4901
• Philippines Trade Training Center
  ITC Complex, Pasay City
  Metro Manila
  Tel.: 834-1344
• Bureau of Small & Medium Business Development
  Open Building Makati
  Tel.: 890-5682
• Technology & Livelihood Resource Center
  City State Centre
  Shaw Boulevard, Pasig City
  Tel.: 637-4081

Courses offered

• Market research
• Small and Medium Enterprise (SME)
  Example: Meat Processing, Food Canning and Preservation, Christmas Decor
• Entrepreneurship Training
• Export development course
• Construction management Skills
• Industrial skills
• Facilities
• Labor management relations

Costs of participation range from P 500 to 1,500 per course.

Important Websites

• http://bworld.com./ph
• http://www.dti.gov.ph

Legal Forms of a Company

There are three most common legal form of a company for doing business.

• Partnership
• Corporation
• Sole Proprietorship

Partnership

Definition: Article 1767 of the new civil code of the Philippines provides that "by the contract of partnership, two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves". Two or more persons may also form a partnership for the exercise of a profession. A Partnership is a voluntary contract between or among the partners and the agreement may be oral or written, or simply implied from the acts of the parties. If there are real properties contributed by the partners or the capital of the partnership is more that P 3,000 or more, the contract must be in writing.

The contract is called "Articles of Co-Partnership" which is registered with the Securities and Exchange Commission (SEC).The law does not limit the number of partners. "Persons" can be individuals, partnerships, corporations, or associations. If there are properties invested by the partners, they should agree on the valuation of the said properties to avoid future misunderstanding. If there is an industrial partner, the partnership contract should specify his profit sharing ratio. All investments of the partners will be transferred in the name of the partnership. A non-profit organization can not be formed into a partnership because there will be no profits to divide.

Characteristics of a Partnership

A partnership has the following characteristics:

• Mutual Agency – this means that each partner is considered an agent of the partnership for the purpose of its business. Acts of a partner which are within this express or implied authority will bind the partnership. Acts of a partner outside the scope of business operations will not bind the partnership unless he is authorized by the co-partners.
• Separate Legal Enity – this means that a partnership has a juridical personality separate and distinct from the partners. A partnership can acquire assets or incur liabilities in its own name. It can enter into contact with third parties. It can sue or be sued.
• Limited Life – the life of the partnership is limited in the sense that it can be easily dissolved. Death, retirement, withdrawal of a partner, or the admission of a new partner will change the original relationship hence the original partnership contract is automatically terminated and anew contract will be executed if the business is to continue.
• Unlimited Liability – this means that if the assets of the partnership are not sufficient to pay the liabilities, the partners (except the limited partner) are individually or jointly liable and their personal assets may be attached by the creditors to satisfy the partnership obligations.
• Participation in partnership Profits – this means that all partners share in the profits of the partnership. However, an agreement to share profits alone does not crate a partnership. A party may agree to accept a share in the business profits for services to be rendered or for the use of certain properties but this relationship will not be recognized as a partnership unless there is a definite intent to form such a partnership.
• Voluntary Association – this means that partners who will enter into a partnership contact are doing it on a purely voluntary basis are doing it of their own free will.
• Co-ownership of Partnership Property – this means that all assets contributed by the partners become the partnership assets and all the partners become co-owners.

Advantages / Disadvantages of a Partnership

When several persons decide to put up a business, they can choose between organizing a partnership (2 or more) or a corporation (5 or more but not exceeding 15). The parties concerned must carefully evaluate the pros and cons of both forms of business organization under the prevailing circumstances before making a decision. The kind or nature of the business, its objective, size and capitalization required, are some of the important factors to be considered.

Compared to a corporation, some of the advantages of a partnership are as follows:

• A partnership is easier and less expensive to organize because there are fewer legal requirements.
• In the event the partners do not wish to continue the business for whatever reason, the partnership is easier to dissolve or terminate.
• Business decisions will be facilitated because there will be less decision makers and lesser formalities.

Among the disadvantages are the following:

• Because a partnership can easily be dissolved, there is uncertainly as to the business continuity which can be of great concern to prospective long-term creditors
• The liability of the general partners for the partnership debts extends beyond his interests or capital in the partnership. The partner’s personal properties may be attached by the creditors to satisfy their claim.
• Because a partner is an agent of the partnership, his wrongful acts or poor decisions may prejudice the interests of the business.
• The capital of the partnership will be limited only to the extent of what the partners can actually contribute
• Unlike a corporation, ownership or interests of the partner’s in the business can not be transferred without dissolving the partnership.

Kinds of Partnership

A partnership may be classified according to the following:

As to its Activities

• Commercial Partnership – is one engaged in trading, manufacturing, or servicing.
• Professional Partnership – is one engaged in the exercise of a vocation or profession.

As to the Liability of the Partners

• General Partnership – a partnership where the liability of all the partners is unlimited, i.e., they can be personally liable for partnership debts. It is a partnership where all the partners are general partners.
• Limited Partnership – a partnership where the liability of one or more but not all the partners is limited only up to the extent of his interests or capital in the partnership where the term of its existence is agreed upon by the partners.

As to duration of the Partnership

• Partnership at will – is one in which there is no fixed term for its existence. It can be terminated any time.
• Partnership with a fixed term – is one formed for a specific undertaking or venture and is terminated upon completion of the undertaking. It is also a partnership where the term of its existence is agreed upon by the partners.
• A partnership with a fixed term becomes partnership at will if after the expiration of the term the partners will decide to continue the business.

As to Legality of its Existence

• De jure partnership – one which has complied with all the legal requirements for its formation
• De facto partnership – one which has not complied with all the legal requirements for its formation.

Kinds of Partners

As to Contribution

• Capitalists partner – one who contributes cash or other properties.
• Industrial partner – one who contributes only his services with no capital contribution.
• Capitalist-industrial partner – one who contributes both cash or other properties and services.

An industrial partner shares in the profits but not in the losses. He is not liable for partnership debts as far as his co-partners are concerned. However, he is not allowed to engage in any business without the consent of the other partners. His profit sharing ratio must be clearly stipulated in the contract.

As to Liability to Outsiders

• General partner – is one whose liability for partnership debts is unlimited. The creditors can run after him in case the partnership becomes insolvent.
• Limited partner – is one whose liability for partnership debts is limited only up to a certain amount usually the amount of his interests or capital in the business.

As far as creditors are concerned all partners (except the limited partner) are deemed to be general partners in the sense that they can collect from anyone of them to satisfy their claims. However, the industrial partner can ask for reimbursement from the general partners.

As to Participation in Management

• Managing partner – is one who actively manages the affairs of the business and is known as a partner.
• Secret partner – is one who actively manages the affairs of the business but is not known as a partner.
• Silent partner – is one who does not participate actively in the management of the business but is known to be a partner.
• Dormant partner – is one who does not participate actively in the management of the business and is not known as a partner.

All the above partners are true or real partners. The difference lies only in their participation in the management of the business and on whether or not they are known to the public as partners.

A partner who is not really a partner but allows his name to be used by the partnership for accommodation or for other considerations is called a nominal partner.

Basic Rights of a Partner

A partner has the following basic rights:

• The right to share in the profits.
• The right to participate in the management of the business.
• In the event of liquidation, the right to share in the assets of the business after satisfying the claims of creditors.

Articles of Co-Partnership

Although a partnership may be formed merely by oral or verbal agreement, it is advisable to put up the contract in writing.

Among the important points to be covered in the partnership contact are the following:

• Partnership name
• Nature of the partnership
• Place of business
• Effectivity date of the partnership and its duration if there is a fixed term.
• Names of the partners and the agreed capital contribution of each.
• Rights, duties and powers of each partner including the limitations.
• The profit and loss sharing ratio
• Other compensation the partners may be entitled to
• Partner’s investment and withdrawals subsequent to the partnership formation
• Provisions for the arbitration of disputes and the dissolution/liquidation of the partnership.

Registration Requirements

The Partnership contract (Articles of Co-Partnership) is to be registered with the Securities and Exchange Commission (SEC) which will issue a certificate of registration. The partnership or business name will be registered with the Department of Trade and Industry (DTI) which will issue a certificate of registration of business name. A Mayor’s permit will be secured from the city or municipality where the business is located. The partnership must also register with the bureau of Internal Revenue (BIR) to secure a tax account number, and value added tax certificate number. The books of accounts, invoices, and official receipts must also be registered. The partnership must also register must also register with the Social Security System (SSS) to secure the SSS certificate of membership and the SSS employer ID number.

Corporation

Definition: A corporation is an artificial being crated by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence.

Characteristics of a Corporation

Based on the definition stated, the following characteristics or attributes of a corporation can be noted:

• It is an artificial being – This means that a corporation is considered as a juridical person and as such, it has a legal personality separate and distinct from the owners (stockholders and/or members). The corporation can acquire properties and incur liabilities in its name. It can sue and be sued, except that it cannot be sued criminally.
• It is created by operation of law – This means that before a corporation can acquire a legal personality, it must comply with all the requirements provided for by law. Its existence and operation must be authorized and approved by the government through the Securities and Exchange Commission (SEC).
• It has right of succession – this means that a corporation’s legal existence is not dissolved by the death or incapacity of a founder or stockholder/member.
• Its powers are expressly authorized by law or are incident to it’s existence – This means that the powers of a corporation are derived from the authorization granted by the Government which include an implied authority to perform activities and acquire assets which are necessary to accomplish its objectives or incidental to its existence.

General Requirements

When forming a corporation the following are the basic requirements:

• Five or more persons but not exceeding fifteen (incorporators) must file with the Securities and Exchange Commissions the Articles (the contact to form a corporation).

Note: The incorporators must be natural persons, all of legal age and majority of whom are residents of the Philippines.

• A sworn affidavit of the temporary treasurer of the corporation and a bank certification that at least 25 % of the authorized capitalization has been subscribed and 25 % of such subscription has been paid and deposited with the bank.

Note: Each incorporator must subscribe to at least one (1) share of the capital stock of the corporation and the paid up capital of all incorporators must not be less than P 5,000.

• Payment of filing fees
• After the Articles of Incorporation has been approved by the SEC, the By-Laws of the corporation are also submitted for approval.

Note: The corporate by laws must be submitted to the SEC within one month from the date of approval of the articles of Incorporation.

The life of a corporation is limited only to fifty (50) years subject to renewal.

The corporation must commence business operations within two (2) years from the date of incorporation.

Corporation vs. Partnership

The nature of a corporation is better understood if it is compared with a partnership. The following distinctions may be made:

Advantages / Disadvantages of a Corporation

From the comparison of the corporation with the partnership, the following advantages or disadvantages can be derived:

Advantages

• Stockholders have limited liability to corporate creditors.
• Stockholders can transfer their shares of stock to others with out the consent of the other stockholders.
• Management is centralized in the board of directors
• Greater ability to acquire or generate more capital or funds.
• The corporation’s power of succession enables it to enjoy continuous existence.

Disadvantages

• It is expensive and not easy to organize because of the so many legal requirements and formalities.
• It is subject to stricter government control and supervision.
• It is subject to heavier taxation
• The board of directors may abuse its powers to the detriment of the stockholders.
• The credit standing of the corporation may weaken because of the limited liability of the stockholders.

Articles of Incorporation

The articles of Incorporation enumerates the powers and authority conferred upon the corporation by the government. It contains among other things the following information:

• The name of the corporation
• The purpose for which the corporations is formed
• The place of the principal office if the corporation.
• The term of existence of the corporations not exceeding 50 years, but renewable.
• The names, nationalities, and addresses of the incorporators
• The names of the directors who will serve until their successors are duly elected in accordance with by laws.
• The authorized capital, the classes of stocks to be issued, and the number of shares, and the nature and terms of each class of stock, indicating the par or stated value.
• The amount of subscription to the capital stock, the names of the subscribers, and the number of shares subscribed by each subscriber.
• The total amount paid on the total subscriptions, and the amount paid by each subscriber on his subscription.

Corporate By-Laws

The corporate By-Laws supplement the Articles of Incorporation. They contain the provisions and guidelines for the internal administration of the corporation.

The corporate by-laws normally include the following:

• The date, place, and manner of calling the annual stockholders meeting
• The manner of conducting meetings
• The circumstances which may permit the calling of special meetings of the stockholders
• The manner of voting and the use of proxies
• The manner of electing the directors and the number of directors to be voted upon
• The term of office of the directors
• The authority, duties and functions of the directors
• The manner of selecting the corporate officers.
• The authority and responsibilities of the officers.
• The procedures for amending the Articles of Incorporation
• The procedures for amending the by-laws

Constituents of a Corporation

The following persons are associated with a corporation:

• Incorporators – These are the stockholders or members who organized and formed the corporation and whose names are mentioned in the articles of incorporation. Incorporators are also known as founders.
• Corporators – these are the persons (owners) who compose the corporation, which include the incorporators, stockholders or members.

All incorporators are corporators in as much as they are stockholders or members of a corporation but not at all corporators are incorporators unless their names are stated in the articles of incorporation.

• Stockholders – These are corporators (owners) of a stock corporation who own at least one share of the corporation’s capital stock.
• Members – These are corporators (owners) of a non-stock corporation
• Subscribers – These are persons who have agreed to buy shares of stock of a corporation
• Promoters – These are persons who facilitate the formation and organization of a corporation
• Under writers – These are persons who promotes and facilitate the sale and issue of capital stock of a corporation
• Board of Directors – These are the persons elected and designated by the stockholders who are responsible for the formulation of the overall policies of the corporation. In a corporation, management is vested in the board of directors.
• Corporate Officers – These are the persons elected and designated by the board of directors who will implement the corporate policies and actively manage the day-to-day affairs of the corporation. These officers include the chairman of the Board, president, vice-presidents, corporate secretary and corporate treasurer, among others.

Kinds of Corporations

As to Purpose

• Public Corporations – a corporation formed or organized for the government or administration of a portion of the state (e.g. provinces, cities, municipalities, baranggays).
• Private Corporation – a corporation, which is created wholly or in part by the private sector for private purposes.
• Quasi-Public Corporation – a private corporation which accepts from the state the grant of franchise or contact for the performance of public services (e.g. National Power Corporation, PLDT, Meralco, etc).

As to Membership (in a private Corporation)

• Stock Corporation – a corporation whose capitalization is divide into shares of stock and is authorized to distribute to holders of such shares, corporate earnings in the form of dividends.
• Non-Stock Corporation – a corporation which has no capital stock, and whose profits it may generate incidental to its operations are used fro the furtherance of the purposes for which the corporation is organized.

As to Nationality or Authority that Grants its Creation

• Domestic Corporation – a corporation organized under the Philippine laws.
• Foreign Corporation – a corporation organized under the laws of foreign countries.

As to Extent of Membership

• Close Corporation – a corporation whose stock ownership is limited to selected persons or family members not exceeding 20 persons.
• Open Corporation – a corporation whose capital stock is available for subscription or purchase by any person.

As to Relationship to Another Corporation

• Parent or Holding Corporation – a corporation which has the power to either directly or indirectly elect the majority of the directors of a subsidiary corporation
• Subsidiary Corporation – a corporation controlled by another corporation known as the parent corporation.

As to Legal Right to Corporate Existence

• De jure Corporation – a corporation existing in fact and in law and has complied strictly with all the requirements of law
• De Facto Corporation – a corporation existing in fact but not in law, hence, considered as having illegal corporate business.

Classes of Capital Stock

The capital stock of a corporation can be classified as follows:

As to Preference over Dividend/ Asset Distribution

• Common Stock – This is an ordinary capital stock that entitles the holder therof (called common stockholder) a pro-rata share of dividends declared or a share in the asset distribution in the event of liquidation without any Preferences or priority over the other stockholders.
• Preferred Stock – this is a special class of stock that entitles the holder thereof (called preferred stockholder) preferences or priority over the common stockholders with respect to dividend payment or assets distribution or both.

Note: If only one class of stock is issued by the corporation, it is understood to be common stock.

• Non cumulative Preferred Stock – The holder of this stock is entitled to receive only the current years fixed dividend declaration. Past years undeclared dividends are forfeited.
• Cumulative Preferred Stock – The holder of this stock has the right to collect dividends in arrears (dividend not declared for the past years) including the current year’s before dividend payments can be made to common stockholders.
• Non-Participating Preferred Stock – The holder of this stock is not entitled to receive additional dividend beyond its fixed dividend stipulated in the articles of Incorporation. Earnings declared in excess of the preferred dividend will all be distributed to the common Stockholders.
• Participating Preferred Stock – The holder of this stock has the right to receive additional dividend in excess of the fixed dividend but only after both the preferred and common stockholders have received the same percentage of dividend. The excess earnings declared will be distributed on a pro-rata basis.

As to the Value Assigned to the Capital Stock

• Par Value Stock – This is a capital stock that contains a specific or fixed value (called par value) per share printed in the stock certificate.
• No Par Value Stock – This is a capital stock without a specific value per share printed in the stock certificate. Note: Because this class of stock has no par value, the minimum price (called stated value) must be stipulated in the articles of Incorporation and the amount per share must not less than P 5. However, if it is a pure value stock, (no stated value) than it has no minimum or stated value per share.

As to Voting Power

• Voting Stock – A capital stock which has a voting right.
• Non-Voting Stock – A capital stock which has no voting right.

Note: Generally speaking, only common stock has a voting right.

Others

• Treasury Stock – This is a capital stock already issued and subsequently reacquired by the corporation with the intention of re-selling or re-issuing it.
• Convertible Stock – This is a capital stock that may be converted into other class of stock or corporate securities at the option of the holder (usually, this is a preferred stock).
• Delinquent Stock – This is a capital stock that has been subscribed (contracted to be purchased) but the subscriber defaulted in paying the balance of the subscription.
• Founders Stock – This is a capital issued to the founders of a corporation. This usually the most privileged stock.
• Promotion Stock – A capital stock issued to owners of natural resources or rights connected there with as compensation for transferring their ownership or rights to the corporation. It can also refer to the capital stock issued to the promoters responsible for organizing the corporation.
• Redeemable Stock – This is a capital stock callable at some future date at the option of the corporation.

Shares of Capital Stock

As mentioned earlier, a stock corporation is one whose capitalization is divided into shares of stock.

Example: a Corporation is authorized to have a capitalization of P 1,000,000 with a par value of P 20 per share. Based on the example on page 134, the corporation is authorized to sell and issue a maximum of 50,000 shares of capital stock (P 1,000,000 / P 20). A share of stock represents one unit of the total authorized shares of 50,000.

Stock ownership is evidenced by the stock certificate where the number of shares subscribed ad paid for is indicated.

For recording and reporting purposes, shares of stock may be classified as follows:

• Authorized Shares – The maximum number of shares a corporation is allowed to issue or sell.
• Subscribed Shares – The number of shares contacted to be purchased by the subscribers.
• Unissued Shares – The number of shares not yet subscribed or already subscribed but not yet paid.
• Issued Shares – The numbers of shares subscribed and fully paid.
• Treasury Shares – The number of shares already issued but required by the corporation.
• Outstanding Shares – The number of shares subscribed and issued minus the treasury shares (The number of shares in the hands of the stockholders which are entitled to dividends).

Rights of a Stockholder

A stockholder has the following basic rights:

• Right to attend and vote in person or by proxy at stockholders meeting.
• Right to elect and remove directors
• Right to be elected as director.
• Right to adopt, amend, or modify the corporate by-laws
• Right to receive dividends
• Right to buy or purchase new shares that the corporation intends to issue (this is termed "pre-emptive right")
• Right to inspect corporate books and records.
• Right to receive financial reports of the corporate business.
• Right to transfer owned shares of stocks to others.
• Right to receive the remaining corporate assets after payment of creditors in the event of liquidation.

Corporate Books and Records

A corporation is required to maintain the following books and records:

• Minutes Book – It contains the minutes of the meeting of the board of directors and stockholders.
• Stock and Transfer Book – This is a set of records containing of:
• Stockholders Ledger – This is an alphabetical record of individual stockholders containing information as to number of shares and stock certificates.
• Stockholder’s Journal – This is a chronological record of the issuance of stock certificates, and its transfers from one stockholder to another.
• Subscribers Ledger – This is a chronological record of subscriptions to capital stock and related payments of subscription price.
• Books of Accounts – These are the journals and ledgers used in recording all transactions of the corporate business.
• Financial Statements – These are the formal business reports which the corporate business issues for external as well as internal purposes. They include:
• Balance Sheet – A report showing the financial status of the corporation as of given date. It contains the assets, liabilities and stockholders’ equity of the business.
• Income Statement – A reports that reflects the resuts of operations of the corporate business. It contains the revenues or incomes generated by the business, and the expenses incurred for a specific period of time.
• Statement of Cash Flows – A report that shoes the sources and uses of corporate cash funds.

Trust fund Doctrine (Legal Capital)

This doctrine provides that the capital stock of a corporation is considered as a Trust Fund for the protection of the corporate creditors.

Following this doctrine, the legal capital of the corporations (considered as trust fund) can not be distributed as liquidating dividends to stockholders.

The Legal Capital of a corporation represents the aggregate par value and/or staed value of the shares of capital stock subscribed and issued.

In the case of a par value stock, the additional paid in capital (excess of selling price of the stock over the par value) is not apart of the legal capital. If the capital stock has no par value but with sated value, the excess of the selling price of stock over the stated value forms part of the legal capital. If it is a pure no par value capital (no stated value), the selling price of the shares of stock is considered as the legal capital.

Sole Proprietorship

Many small businesses in the Philippines are started as sole proprietorships. This is often due to the desire of an individual who is going into business for the first time, to do it on his own first while learning the trade. After operating for some time, he invites or gets invited to form a partnership or a corporation.

Organizing a Sole Proprietorship

The following is the procedure followed in organizing a sole proprietorship:

• Register the business name with the Bureau of Domestic Trade
• Pay the municipal licenses to the local government
• Apply for VAT or non-Vat member
• Register with BIR the books of accounts (simplified bookkeeping records or journals and ledger) and the business forms to be used (sales invoices, cash sales invoices, official receipts, etc.)

It should be emphazised to anybody desirous of going into business that unless the business activities he has in mind require an office or store, he can do business in his own Residence.

Advantages and Disadvantages of a Sole Proprietorship

Advantages

• It is easy to organize. The governmental requirements for sole proprietorships are minimal.
• Decisions can easily be made in as much as they are made by the owner himself.
• Financial operations are not complicated inasmuch as this type of organization is generally for small-scale business.
• The owner is entitled to all the profits his business realizes.

Disadvantages

• Limited ability to raise capital. The business depends only on the financial resources that can be procured by the sole owner.
• The sole proprietor has unlimited liability. Business creditors can go after his personal assets to satisfy claims.
• Limited ability to expand. This is due to its limited capital and in most cases, operations are limited only to areas in which the sole proprietor has expertise.
• Business is entirely a responsibility of the owner. The owner has nobody to share with the burden of decision making and losses he might incur.
• Net income is subject to tax regardless of whether it is withdrawn or not.

It may be noted that the disadvantage of having limited ability to expand (No.3) arises from the limited liability to raise capital (No.1). For anyone intending to go into business, capitalize on the advantages as listed and invest the minimum amount of capital required to make the business viable. The perennial advice of "not putting all your eggs in one basket" may be observed by channeling remaining resources to other forms of investment to provide leverage.

Establishing Corporations and Other Business Entities

Registering Corporations

Securities and Exchange Commission Registration Requirements

The SEC is the primary government agency administering the registration and operation of domestic corporations under the Corporation Code. To form a corporation in the Philippines, the incorporators must subscribe to the proposed articles of incorporation and file documents specifying the company name and purposes, principal office, capital, distribution and certain other information with the SEC.

The SEC requires the following information and documents to register a corporation:

• A copy of the articles of incorporation and bylaws
• The corporate treasurer's affidavit of actual deposit of paid-up capital
• The incorporators' statements of assets and liabilities
• A bank certificate of deposit on paid subscriptions
• Authorization by the corporate treasurer for the SEC to verify the corporation's bank accounts
• A written undertaking to change the corporate name if it is similar to or resembles the name of an existing corporation
• The taxpayer identification numbers of the incorporators<
• An undertaking to comply with the SEC report requirements
• Personal information on directors, officers and stockholders

Number of Founders

A corporation may be formed by at least 5 but not more than 15 individuals, the majority of whom must be Philippine residents. Except in certain instances specified by law, a corporation may not be an incorporator because it is a juridical person.

Processing Time and Fees

To facilitate the registration of new corporations, the SEC operates an "Express Lane" with application forms prepared for specific lines of business. Filing takes one day if all of the necessary documents and prior clearances from other agencies (see Other Registration Procedures) are submitted in the morning. Approval of application may be released within two to three days.

Incorporation papers that are not sent through the Express Lane require one to four weeks to process.

The filing fee for the articles of incorporation is one-tenth of 1 % of the authorized capital stock of the corporation. A legal fee of one-tenth of 1 % of the filing fee and a minimal research fee also apply.

In addition to the SEC fees, the following expenses are also incurred in incorporating a subsidiary in the Philippines:

• Documentary stamp tax of 1 % of the subscribed capital stock.
• Registration fee with the Local Government Unit (LGU), which varies according to the rates imposed by each LGU.
• Barangay clearance fees, which vary with each barangay.
• Community tax certificate of P 500 for new registrants.
• Mayor's permit fee, including the Sanitary Permit, Engineering Permit and Building Permit. The fee varies according to the nature of the business.
• Bureau of Internal Revenue (BIR) annual registration fee of P 1,000.
• Books of accounts bought for registration and stamping, the cost of which is approximately P 200.
• Department of Trade and Industry (DTI) registration fee, which varies according to the nature of the business.

Capital

The law does not impose a minimum authorize capital stock, but it requires that at least 25 % of authorised capital stock be subscribed at the time of incorporation, and that at least 25 % of the total subscribed capital must be paid up. In all instances, however, the minimum paid-up capital for a corporation should be at least P 5,000. If the subscriber is an alien or a non-resident foreign corporation, the amount subscribed should be fully paid-up.

A domestic market enterprise with foreign equity participation exceeding US$ 40 is required to have a minimum paid-up capital of US$ 200,000. This amount may be reduced to US$ 100,000 if the enterprise involves advanced technology as determined by the Department of Science and Technology, or if it employs at least 50 direct employees.

Shareholders

In a private corporation, the shareholders directly own the shares of the corporation but not the corporation's properties. The shareholders include subscribers who have agreed to pay for the original unissued shares of the corporation that is formed or yet to be formed. The number of shareholders in a private corporation is not limited. As a juridical person, a corporation may be a shareholder.

Types of Shares

Capital may be divided into multiple classes of shares, with varying property and voting rights, which may be assigned par or no-par values. Typical classifications include common and preferred, and "A" (usually common) and "B" (usually preferred) shares. A shares are restricted to Filipinos; B shares may be held by foreign nationals.

Control

Corporate control is exercised by simple majority rule in most cases. However, approval by two-thirds of the shareholders is required to increase capital, amend the articles of incorporation or declare dividends.

Board of Directors and Officers

Corporate powers are exercised by the board of directors. Board members are elected by the shareholders. Every director must own at least one share of the capital stock of the corporation, and a majority must be residents of the Philippines. The corporate secretary must be a resident citizen but need not necessarily be a director.

The management of the corporation technically is the responsibility of the board of directors. However, day-to-day operations generally are carried out by the corporate officers, who are appointed by the board. Under present SEC rules, foreign nationals may not be appointed to key management positions.

Registering Partnerships

The SEC administers the laws on partnerships and the registration of partnerships in the Philippines. Partnerships whose capital is in excess of P 3,000 must be registered with the SEC. Partnerships whose capitalization is P 3,000 or less need not register.

Other Registration Procedures

Routine registrations are also required by other government bodies, including the BIR, the Bureau of Domestic Trade, the Department of Labor and Employment, the Social Security System (SSS), the Department of Finance and the BSP. If the corporation is organized as a bank or other financial intermediary, a certificate of authority from the Monetary Board of the BSP is essential.

Enterprises engaged in preferred areas of investment under the Investment Priorities Plan (IPP) must register with the BOI. Investments located in the Subic Special Economic and Freeport Zone must register with the Subic Bay Metropolitan Authority (SBMA) and those in the Clark Special Economic Zone must register with the Clark Development Corporation (CDC). Firms establishing operations in one of the other export processing zones must register with the Philippine Economic Zone Authority (PEZA).

Building and Related Permits

For projects requiring the construction of plants, buildings or other land improvements, investors may be required to secure a location clearance from the Housing and Land Use Regulatory Board. Investors must obtain building and related permits from the local government of the area in which the proposed project is to be constructed. Local governments are responsible for zoning ordinances, which vary from place to place. Clearances usually take from one to two weeks.

Mergers and Acquisitions

No specific legislation restricts mergers. Mergers of stock corporations require SEC approval if they entail changes in the companies' articles of incorporation and equity structures.

The Corporation Code requires trustees of merging firms to submit a plan to their stockholders or members. An affirmative vote by stockholders representing at least two-thirds of the outstanding capital stock of each corporation is necessary to proceed. Stockholders have the right to appraise the merger, express dissenting views or demand payment of the fair value of their shares. After a merger is approved by the stockholders, the articles of merger or consolidation must be submitted to the SEC, which may require a hearing if it believes the proposed merger or consolidation is inconsistent with the code or any existing laws.

Rates

In general, domestic corporations and resident foreign corporations (branches of foreign companies) are subject to income tax at a rate of 33 % for 1999 and 32 % in subsequent years.

Territoriality

In general, domestic corporations are subject to tax on their worldwide taxable income. Domestic corporations are corporations incorporated under the laws of the Philippines. Worldwide taxable income includes income derived from foreign branches, regardless of whether such income is repatriated.

Resident foreign corporations are taxed on their net taxable income derived from the Philippines. Non-resident foreign corporations are taxed on their gross income derived from the Philippines. A resident foreign corporation (a branch) is a corporation created under the laws of a foreign country and engaged in a trade or business in the Philippines; other foreign corporations are considered non- resident corporations.

Partner Options

Possible business partners can be found by participating in Trade Fairs organized by various trade organization such as the Department of trade; foreign trade organizations and the Diplomatic community, Phil. Chamber of Industries and other Trade fairs organized by Local government units.

Both buyers and sellers of various goods and commodities will have the chance to meet during these trade fairs and exhibitions. Here the visitors can enter new markets and find business partners.

Contact information

• European Chamber of Commerce of the Philippines
  19/F Philippine AXA Life Centre
  Sen. Gil Puyat Ave.cor. Tindalo St.
  Makati City,Metro Manila
  Tel.: 759-6680, 845-1324
  Fax: 759-6690, 845-1395
  E-Mail: info@eccp.com
  Website: http://www.eccp.com
• Philippine Chamber of Commerce & Industry
  NCCC Bldg, Manila
  Tel.: 527-6142

Bank and Credit System

Bangko Sentral ng Pilipinas

The Bangko Sentral ng Pilipinas is the central bank of the Republic of the Philippines. Its main responsibility is to formulate and implement policy in the areas of money, banking and credit, with the primary objective of maintaining stable prices conducive to balanced and sustainable economic growth in the Philippines. It also aims to promote and preserve monetary stability and the convertibility of the national currency. Its functions include the following:

Conducting Monetary Policy. The BSP formulates and implements a monetary policy aimed at managing the expansion or contraction of monetary aggregates consistent with the maintenance of price stability. This function is carried out primarily through open market operations, the imposition of reserve requirements and rediscounting transactions.

Issuing Currency. Bangko Sentral has the exclusive power to issue the national currency. All notes and coins issued by the BSP are fully guaranteed by the Government and are considered legal tender for all private and public debts.

Lending to other Banks and the Government. The Bangko Sentral is authorized to extend discounts, loans and advances to banking institutions for purposes of influencing the volume of credit consistent with Bangko Sentral's objective of maintaining price stability. The BSP is also authorized to extend commercial credits, advances against specified collateral, special credits or loans for liquidity purposes and emergency loans and advances (consistent with its function as the lender of last resort), which are subject to interest and other appropriate charges.

In general, the Bangko Sentral does not regularly extend credit to the Government, although it purchases Government securities in the secondary market in connection with its open market operations. In certain circumstances, the Bangko Sentral may make direct provisional advances to the Government to finance expenditures authorized in the Government's annual appropriation, provided that these advances are repaid within three months. The aggregate amounts of advances granted by the Bangko Sentral to the Government may not exceed 20 % of the average annual income of the Government during its most recent three fiscal years.

Managing Foreign Currency Reserves. The BSP seeks to maintain sufficient international reserves to meet any foreseeable net demands for foreign currencies in order to preserve the international stability and convertibility of the Peso. To determine the adequacy of international reserves, the Monetary Board monitors prospective receipts and payments of foreign exchange. Special attention is also given to the volume and maturity of BSP's assets and liabilities in foreign currencies, those of other banks operating in the Philippines and, insofar as they can be known or estimated, those of all other persons and entities in the Philippines. The BSP's international reserves consist principally of gold and assets in foreign currencies in the form of documents and instruments usually employed for the international transfers of funds; demand and time deposits in central banks, treasuries and commercial banks abroad; foreign government securities; and foreign notes and coins.

Supervision and Regulation of Financial Institutions. The BSP supervises and regulates banks and quasi-banks in the Philippines. In that capacity, the BSP conducts periodic or special examinations of banking institutions and quasi-banks, including their subsidiaries and affiliates engaged in allied activities. The BSP's supervisory responsibilities include not only the issuance of rules, but also oversight to ascertain that banks and quasi-banks comply with applicable regulations and conduct their business on a sound financial basis.

Bangko Sentral also exercises regulatory powers over operations of financial institutions without quasi-banking functions and similar institutions, although certain of these powers will be phased out by 1998 and transferred to the Philippine Securities and Exchange Commission. The BSP does not independently engage in any commercial banking activities.

Determination of Exchange Rate Policy. The BSP determines the exchange rate policy of the Philippines. Currently, the BSP adheres to a market-oriented foreign exchange rate policy such that the role of Bangko Sentral is principally to ensure orderly conditions in the market.

Other Activities. The BSP functions as the banker, financial advisor and official depository of the Government, its political subdivisions and instrumentalities and GOCCs. The BSP also provides the Government with opinions on the monetary implications of any foreign and domestic borrowing operations. Foreign borrowing operations of the Government require, in addition, the approval of the BSP. The BSP also represents the Government in international financial institutions, such as the IMF and the World Bank.

For the text of the various laws and policies governing the bank and credit system of the Philippines, one can access the BSP website: http://www.bsp.gov.ph/Regulations/regulations.htm

Microfinance Programs

Programs by Bangko Sentral ng Pilipinas

The Bangko Sentral ng Pilipinas (BSP) was specifically mandated in the General Banking Law of 2000 to recognize microfinance as a banking activity and to draft the guidelines for microfinance operations within the banking sector. If provided in a sound and sustainable way, the BSP sees microfinance as an effective intervention for poverty alleviation. Another reason is that the banks, especially rural and thrift banks, are an ideal provider of microfinance because they already have the infrastructure to provide microfinancial services to the countryside. As long as the BSP closely monitors and adequately supervise these operations, then microfinance in the banking sector is an ideal development.The BSP has declared microfinance as its flagship program for poverty alleviation in Year 2000 and has since then played a key role in the development of sustainable microfinance in the country. The BSP initiatives have focused on the policy and regulatory environment, training and capacity building as well as on promotion and advocacy.

The National Strategy for Microfinance envisions a viable and sustainable microfinancial market that will help provide poor households and microentrepreneurs with greater access to microfinancial services. It calls for a greater role for the private sector and the non-participation of government line agencies in the provision of credit and guarantee programs. Emphasis is on the adoption of market oriented financial and credit policies to ensure viability and sustainability.

National Framework

The National Framework for regulation encompasses all types of microfinance institutions and the focus of regulation is on portfolio quality, outreach, efficient and sustainable operations and transparent information. The basic premise of the framework is that all deposit taking institutions (banks, cooperatives) are subject to prudential regulation and microfinance NGOs who collect savings greater than the compensating balance should be subject to regulation and supervision. Banks with microfinance operations will remain under the regulation and supervision of the BSP, cooperatives will be under the supervision and the regulation of the Cooperative Development Authority (CDA) and NGOs will continue not to be regulated but will be encouraged to submit information to the Microfinance Council of the Philippine (MCPI).

Microfinance Institutions

There is a wide range of types of microfinance institutions around the world. In the Philippines, microfinance services are provided mainly by banks (mainly rural and thrift), Non-governmental Organizations (NGOs), and cooperatives.

Microfinance institutions have various methodologies and technologies depending on their client demand and organizational goals and objectives. There are, however, two main types of approaches. The group methodology is where the microfinancial service is provided in the context of a group and the individual approach or single client lending where the repayment and schedules rely solely on the individual (i.e. character, cash-flow, etc.)

In the Philippines, our policy now directs government line agencies (DSWD, DILG, etc) not to directly provide financial services and instead transfer this function to government financial institutions (i.e. Land Bank of the Philippines, Development Bank of the Philippines, etc) that have the competency to implement such financial programs. The line agencies will focus in areas where they have a greater advantage in terms of competency and capacity such as capacity building, social preparation, provision of infrastructure, etc.

Microfinance programs

In support of the National SME Development Plan, the government financial institutions (GFIs) collaborated to design a uniform lending program called the SME Unified Lending Opportunities for National Growth or SULONG tailored fit to meet the funding needs of SMEs. Under the unified lending program, the participating GFIs shall apply simplified and standardized lending procedures and guidelines, e.g., loan purpose, fee structures, interest rates, application forms, financial ratios, and other lending parameters, for evaluating the loan applications of SMEs. To adopt to the financing needs of SMEs, two types of loans are available under the program: short term loans payable in one year, and long term loans that are payable up to five years. The unified lending scheme is in addition to the existing financial services of the participating GFIs.

Who qualifies to borrow under SULONG?

Enterprises in all industries except trading of imported goods, liquor, cigarettes and extractive industries.

Enterprises that are at least 60 % Filipino owned, whose assets are valued at not more than P 100 Million, excluding the value of the land, or subject to ownership rules as defined under existing Philippine laws for specific industries.

Types of Loans

For short-term loans, the entrepreneur may tap the program either for export financing (export packing credit) or a credit line for temporary working capital.

For long term loans, SMEs may apply for loans for permanent working capital, or to purchase equipment, a lot or to construct a building/warehouse.

Maximum Financing

For short-term loans, the program can fund up to 70 % of the value of the LC/PO (export packing), or 70 % of working capital requirement (temporary working capital); maximum of P 5 Million.

For long-term loans, 80 % of the incremental project cost, maximum of P 5 Million.

Terms of Repayment

• For short-term loans, a maximum of one year.
• For long-term loan, a maximum of five years, inclusive of a maximum one year grace period on principal monthly amortization.

Required Collaterals

The program will not decline a loan only on the basis of inadequate collateral. However, the borrower must be willing to mortgage any available business and personal collateral, including assets to be acquired from the loan, to secure the borrowing.

The following are acceptable collaterals: postdated checks, registered/unregistered REM/ CHM, or the assignment of life insurance. In addition, for franchisees, the following may be considered: corporate guarantee and assignment of lease rights.

If the loan purpose is for export packing credit, a borrower may assign his LC/PO or sales invoice.

What financial ratios / hurdles must a borrower meet?

The debt-equity ratio must at most be 80:20 after the loan. For franchisees, the required ratio is 70:30. In addition, the borrower must show positive income for the preceding year. Should the SME borrower's financials show negative income in the past year, the GFI may consider their average income for the last two or three years.

Interest Rates

The participating GFIs will charge the same rate for the program based on a regular review. In its program launch, the interest rate for loan releases until June 30, 2003 shall be: 9 % for short-term loans; 11.25 % for medium-term loans of up to 3-years and 12.75 % for loans over 3-years to five years.

Aside from the interest rate, what fees must be paid?

A one-time application and evaluation fee of P 2,000 for every P 1 Million, a front-end fee of 1 % of approved loan , and a commitment fee of 0.125 % of the unavailed balance for long term loans.

Who are the participating GFIs?

Interested entrepreneurs may approach the head office or branches of the following GFIs:

• Development Bank of the Philippines
• Land Bank of the Philippines
• National Livelihood Support Fund
• Small Business Guarantee and Finance Corp.
• Philippine Export-Import Credit Agency
• Quedan & Rural Credit Guarantee Corporation

** Interest rates may be reviewed quarterly.

Wholesale Lending for Rural Banks and Thrift Banks

The participating government financial institutions (GFIs) are now accepting applications of eligible rural banks and thrift banks for accreditation under the SULONG unified accreditation system.

• Participating GFIs – Wholesale
• Development Bank of the Philippines
• Land Bank of the Philippines
• Small Business Guarantee and Finance Corp.
• Social Security System

Requirements

• CAMELS Rating should be at least "3.0"
• Compliance with the 10% max. ratio of DOSRI past due loans
• No loan arrears with LBP and BSP, Quedancor, PBSP, SBGFC, PhilExim, DBP and SSS. Not suspended with BSP and LBP rediscounting. Past due loans and items in litigation is not in excess of the industry average plus 2 % but not to exceed 25 % (based on latest quarterly report of BSP). Banks with past due rates of in excess of industry average plus 2 % but not more than 25 % are given 5 years transition period to comply with the standard.
• Not deficient in loan-loss provisions / reserves
• Ratio of acquired assets to total assets is not more than industry average plus 2 % but not to exceed 15 %. Banks with ratio of acquired assets to total assets in excess of industry average plus 2 % but not more than 15 % are given 5 years transition period to comply with the standard.
• Positive results of operations in the last preceding calendar year
• Not deficient in bank reserves for the last six months preceding the filing of application
• Ratio of accrued interest receivables to surplus (free) plus undivided profits is less than 100 %
• The bank is owned and managed by the same persons (key officers) at least for the last two years
• No derogatory information gathered on the officers and directors of the bank
• Compliance to BSP Circular 283 (May 17, 2001) on Corporate Governance

Documents to be Submitted

• Latest report of BSP bank examination
• Copy of quarterly report submitted to BSP
• Credit investigation report by GFI Credit and Appraisal Management Unit or Dept.
• Copy of the Consolidated Statement of Condition and Income & Expense as submitted to BSP
• Certification from Bangko Sentral ng Pilipinas
• Copy of the latest computation of the risk-based capital adequacy ratio cover for credit risk per BSP Circular No. 280
• Copy of latest interim financial statements as submitted to BSP
• Copy of weekly report submitted to BSP or BSP Certification
• Applicant's records
• GFI Credit and Appraisal Management Unit or Dept.
• Applicant's reply to questionnaire on comparison of BSP mandated practices with actual practices

For SSS, whose charter requires that the institution must be in good standing with SSS and must be profitable in past three years, these requirements become automatic in addition to the above list of requirements.

In addition to SULONG, below are the other credit programs of the participating GFIs.

Programs by The Development Bank of the Philippines (DBP)

The Development Bank of the Philippines offers a wide range of products and services that address specific funding needs of its various clients. These packages include project financing, trade financing and import/export services.

We likewise offer banking services, including international banking services, merchant banking services, and treasury products and services.

Loans are available through the Bank's retail lending and wholesale lending operations for capital assets investments and working capital.

Eligible Borrowers

Single proprietorships, registered partnerships, cooperatives, associations, private corporations, private financial institutions, local government units, non-government organizations.

Acceptable Collaterals

Generally, acceptable collaterals for loans are registered first mortgage on titled real estate properties, buildings, machinery and equipment and other mortgageable assets which are already owned by the applicant or to be acquired partly or fully with proceeds of the loan applied for. Hold-out on savings and time deposits as well as government security placements are also considered as acceptable collaterals.

In some cases, the Bank also accepts the guarantees of the following as part of collaterals: Quedan and Rural Credit Guarantee Corporation (QUENDANCOR), Small Business Guarantee and Finance Corporation (SBGFC), Philippine Export-Import Credit Agency (PHILEXIM), Home Insurance Guaranty Corporation (HIGC).

Interest Rate and Other Charges

The rate of interest and other charges for loans and other credit accommodations are generally market-based.

Debt-Equity Requirements

The debt-equity requirements of the Bank would depend on the type of project to be financed taken in conjunction with the Bank's assessment of the risk factors for a particular borrower.

Types of Projects Financed

• Industrial
• Large manufacturing and non-manufacturing industries
• Small and medium manufacturing and non-manufacturing industries
• Industrial Estate Projects
• Public Utilities
• Land, air and water transportation
• Telecommunications
• Power generation and distribution
• Water supply and distribution
• Community Development
• Housing
• Hospitals
• Schools
• Infrastructure
• Eco-Tourism
• Agro-industrial
• Post harvest-facility
• Agri-business
• Focused Lending Programs
• Environmental
• Pollution control and abatement
• Waste minimization and recycling
• Efficient use and/or management of natural resources
• Occupational health & safety

Establishment of Environmental Management System (EMS) and certification under ISO 14000

• Micro-financing
• Lending program for franchises
• Program towards obtaining ISO 9000 certification
• New and renewable energy (NRE) projects
• Technology development and commercialization
• LGU financing program
• Sustainable logistics development program
• Road/Roro Ferry Network
• Grains Bulk

Other Programs

• Factoring
• Loans Against Hold Out on Deposit

National Livelihood Support Fund

(An attached agency of the Landbank)

Provision of livelihood credit fund for re-lending to finance the project requirements of the end-beneficiaries as well as selected logistic requirements of program partners in program implementation. NLSF employs the wholesale lending approach wherein credit funds are channeled through accredited program partners / conduits, which in turn retail the fund to eligible beneficiaries.

The Livelihood Credit Assistance Program (LCAP) is in partnership with the Dept. of Agrarian Reform (DAR), this program caters to the livelihood credit needs of agrarian reform beneficiaries (ARBs) and their dependents in agrarian reform communities (ARCs). The program commenced in 1997.

Philippine Export-Import Credit Agency

Medium and Long-Term Direct Lending Program (MLT-DLP)

• Provide medium and long term loans to exporters to finance their expansion, modernization of production techniques and improvement of production capacity

Purpose of the loan

• Purchase of machinery and equipment
• Acquisition or construction of plant or building
• Permanent working capital
• Acquisition of land to be used as project site (up to 50% of the loan)

Loan limit

• Maximum of P 40 Million

Collateral

• Lien on project assets to be acquired
• Real estate
• Chattels
• Marketable securities or instruments acceptable to PhilEXIM
• Joint and several signatures (JSS) of company principals
• Assignment of exports proceeds
• Export Credit Insurance (ECI)
• Other acceptable collaterals

Eligible Users

Direct and indirect, small, medium and large exporters with:

• Business activity: Processing, production, manufacturing and marketing or trading of products or rendering of services directly or indirectly for export
• Experience: Exporting for at least two (2) years the product which is the subject of the proposed financing
• Credit record: Satisfactory credit performance based on bank/s checking and No substantial derogatory record
• Financial standing: Minimum net worth of P500, 000; Maximum debt/equity; ratio after financing of 3:1; Profitable operations in the immediately preceding two (2) years

Coverage and Terms

• Medium term: More then one year to five years depending on the purpose of the loan
• Long term: More than five years to ten years depending on the purpose of the loan

Costs

Interest rate: PhilEXIM lending rate subject to periodic repricing monthly, quarterly, semi-annually depending on the amortization schedule of the loan

Processing fee: 1/8 % of the approved loan or P 1,000 whichever is higher, non-refundable and payable prior to processing of the loan application

Short-Term Direct Lending Program (ST-DLP)

Provides short-term loans to small and medium sized exporters to finance their pre-shipment working capital requirements

Loan limit

Based on actual production needs but not to exceed 80% of the value of export Letter of Credit (L/C), Confirmed Purchase order (CPO) or Confirmed Sales Contract (CSC) or P 5.0 million whichever is lower.

Availability of the loan

As a revolving line (export packing credit line), or as a transaction loan (case to case export packing credit)

Collateral

• Assignment of proceeds of irrevocable export L/C, CPO or CSC
• Surety ship agreement of principals or major stockholders of the corporation
• Real estate and/or chattel mortgages
• Export Credit Insurance (ECI) policy
• Other acceptable collaterals

Eligible Users

Direct and indirect exporters, with:

• Experience
• For direct exporters
• At least one (1) year exporting experiences with minimum export volume of US$50,000
• For indirect exporters
• Subcontractors or suppliers of direct exporters for the last two years
• Credit record for both direct and indirect exporters
• Satisfactory credit performance based on bank/s checking
• No substantial derogatory record
• Financial standing for both direct and indirect exporters
• Maximum debt-equity ratio of 4:1 after financing
• Minimum net worth of P500, 000

Coverage and Terms

As a revolving credit line

One (1) year revolving with each disbursement supported by a promissory Note with a maximum loan tenor of one hundred eighty (180) days, its maturity being co-terminus with expiry date of the L/C, CPO, CSC inclusive of a fifteen (15) day allowance to cover transit time for receipt of proceeds

As A transaction loan

Maximum overall tenor of one hundred eighty (180) days, its maturity being co-terminus with the expiry date of the covering L/C inclusive of a fiftheen(15) day allowance to cover transit time for receipt of proceeds

Costs

• Interests rate: PhilEXIM prime lending rate to be determined upon loan availment subject to re-pricing every ninety (90) days
• Processing fee: % of approved loan/line or P 5, 000 whichever is higher, payable as follows: 20 % upon loan application; and 80 % to be deducted from proceeds of loan.

Export Credit Insurance Program (ECI)

Provides protection to exporters of up to 85 % to 90 % cover against risk of non-payment by their foreign buyers for shipments on credit terms arising from commercial and/or political risks

Domestic Credit Insurance (Glob alliance)

Provide protection up to 90 % cover to Philippine companies who are subsidiaries of foreign companies against the risks of non-payment by their local and foreign buyers for export and domestic sales on credit terms arising from commercial and/or political risks

Quedancor

For the case of Quedancor, there was an agreement that Quedancor will leave the retail market and focus on the provision wholesale funds to retail institutions. Quedancor’s policies will focus on addressing issues of competition with private financial institutions.

The Technology Livelihood and Resource Center

The Technology and Livelihood Resource Center (TLRC), in fulfilling its mandate as the livelihood center, has included development funding as among its services. It offers the following funding programs and services for micro-, small- and medium-scale entrepreneurs:

Funding services for technology-oriented projects - Funding purposes include: pre-investment, project development and actual business requirements of technology-oriented projects; facilities and technology expansion of non-traditional and export-oriented businesses; utilization of new or improved appropriate technologies that can be commercialized. For more information, contact:

The Group Manager Technology Funds Assistance Group (TFAG)
Unit 907, 9th Floor
City State Center
709 Shaw Boulevard
Pasig City

• Conduited microlending – Livelihood development funding services for low-income groups such as farmers, fisher folk, the unemployed, vendors, housewives and small entrepreneurs. These livelihood-oriented funding programs are coursed through local government units (LGUs) and non-government organizations (NGOs). For more information, contact: The Manager Kaalamang Kabuhayan, Yamang Maaasahan (KAKAYAHAN) Unit 910, 9th Floor, CityState Center 709 Shaw Boulevard, Pasig City
• Funding services for Agri- / Aqua-based livelihood projects – Assists individuals and firms engaged in agri- and aqua-based projects to spur agricultural production through the introduction of improved farming technology, processing technology and innovative marketing know-how. For more information, contact: The Group Manager Strategic Technology and Livelihood Development Group Unit 902, 9th Floor, CityState Center 709 Shaw Boulevard, Pasig City
• Funding services for viable and sustainable micro-enterprises – Extended to all types of livelihood and income-generating projects that can improve family income, such as vending, waste recycling, handicrafts manufacturing, establishment of variety stores, and garments production. For more information, contact: The Manager Special Direct Micro-Lending Program (SDMP) Unit 703/704, 7th Floor, CityState Center 709 Shaw Boulevard, Pasig City
• Entrepreneurship development and livelihood opportunities – Responds to the needs of small- to medium-scale enterprises for funds and technical and management assistance to improve or modernize operations and facilities so that products can be globally competitive. For more information, contact: The Group Manager Livelihood Funds Assistance Group (LFAG) Unit 901, 9th Floor, CityState Center 709 Shaw Boulevard, Pasig City