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flag Philippines Philippines: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

The Corporation is a joint-stock company.
Number of partners: Minimum 5 shareholders, maximum 15. A Majority of shareholders have to be Philippine residents. No maximum after the constitution.
Capital (max/min): PHP 5,000. 25% must be subscribed.
25% must be released at the incorporation.
Shareholders and liability: Liability is limited to the amount contributed.
A Closed Corporation is a closed joint-stock company
Number of partners: Maximum 20
Capital (max/min):
No minimum. 25% must be subscribed.
25% must be released at the constitution.
Shareholders and liability: Liability is limited to the amount contributed.
Sole Partnership is a single-member company
Number of partners: Only 1 person
Capital (max/min): No minimum capital.
Shareholders and liability: Liability is unlimited.
General Partnership
Number of partners: Minimum 2 partners
Capital (max/min): PHP 3,000.
Shareholders and liability: Liability is unlimited.
Limited Partnership
Number of partners: Minimum 2 partners
Capital (max/min): PHP 3,000.
Shareholders and liability: Liability is limited to the amount contributed.
The Competent Organization
The Securities and Exchange Commission (SEC).
 
Setting Up a Company Philippines East Asia & Pacific
Procedures (number) 16.0 7.0
Time (days) 36.0 36.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Philippines.
Philippine Contractors Accreditation Board (PCAB)

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The Active Population in Figures

201120122013
Labor force 40,000,00040,360,00041,330,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -63.80%64.40%
Men activity rate 78.50%79.40%79.40%
Women activity rate 49.20%49.50%49.70%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Agriculture, Hunting and Forestry 31.1%
Manufacturing 8.6%
Transport and Storage 7.6%
Construction 5.4%
Households with Employed Persons 5.1%
Education 3.1%
Hotels and Restaurants 2.8%
Real Estate, Renting and Business Activities 2.8%
Health and Social Work 1.1%
Mining and Quarrying 0.5%
Electricity, Gas and Water Supply 0.4%

Source: International Labor Organization (ILO)

 
For Further Statistics
Philippine Labor Market Information.
For Further Information About the Labor Market
Department of Labor and Employment

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Working Conditions

Legal Weekly Duration
8 hours/day, 40 or 48 hours/week.
Retirement Age
60
Working Contracts
Employment contracts are regulated by legal clauses and to a lesser degree by collective agreements and individual negotiations.
The terms of employment contracts are extremely rigid.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
PHP 11,112 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: PHP 8,175 (source: ILO, 2011);
Gross average monthly wage of women: PHP 8,439 (source: ILO, 2011).
Social contributions
Social Security Contributions Paid By Employers: 5.6 %. Maximum 1 060 PHP/month. For further details, see here.
Social Security Contributions Paid By Employees: 3.76 %. Maximum 500 PHP/month. For further details, see here.

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Social Partners

Social Dialogue and Involvement of Social Partners
The two main groups of trade unions are TUCP and FFW. They are affiliated to the international Confederation of Free Trade Unions (ICFTU) and to the Worldwide Confederation of Labor ( WCL).
In 2012, there were 135 registered labor federations and 16,647 private sector unions. The 1.38 million union members represented approximately 3.4 percent of the total workforce of 40.4 million. Mainstream union federations typically enjoy good working relationships with employers.
Unions
Federation of Free Workers.
Kilusang Mayo Uno
Unionization Rate
3,4 % of workers are unionized.
Labor Regulation Bodies
Bureau of Labor and Employment Statistics (BLES)
Department of Labor and Employment

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Last Updates: October 2014