Are you a foreigner looking to establish a business or expand operations in Southeast Asia? Look no further — the Philippines is your ideal destination. In this article, we’ll highlight 13 compelling reasons why the Philippines is the perfect place to establish and grow your business. Keep reading, and feel free to share your thoughts in the comments!
The Philippines: A Snapshot
Before we dive into the reasons, here’s a quick overview of the Philippines, covering its geography, population, economy, government, infrastructure, and business environment—key factors to consider when you establish a business.
Geography
The Philippines is an archipelago comprising over 7,600 islands in Southeast Asia, covering 300,000 square kilometers, and renowned for its beautiful beaches and agricultural lands. Located between the Pacific Ocean and Asia, its capital is Manila, with major cities including Quezon City, Cebu City, Davao City, Makati, and Taguig—the key economic and cultural centers in the country.
Population
As of 2024, the Philippines has over 113 million people, with a median age of 25. Most Filipinos speak both Filipino (based on Tagalog) and English. About 80% are Christian, mainly Catholic, while 5% of the population, mostly in the south, are Muslim. This mix of youth, language, and religion influences the country’s dynamic culture.
History
The Philippines, as a key center of trade for over 30,000 years, became particularly important during the Galleon Trade (1565-1815), connecting Asia, the Americas, and Europe. Spanish colonization, which began in 1565, spread Christianity and shaped the local culture. After the Spanish-American War, the United States. took control, followed by Japanese occupation in WWII. The Philippines gained independence in 1946 and restored democracy after the 1986 People Power Revolution.
Economy
As of last year, the Philippine economy is valued at approximately US$ 510 billion, with GDP growth forecasted around 6.3%. Services, especially business process outsourcing (BPO), remain a key economic driver, contributing over $32 billion annually to the economy. Overseas Filipino Workers (OFWs) continue to play a vital role, with remittances exceeding US$ 38 billion in 2023, representing about 10% of the country’s GDP.
Government and Politics
The Philippines operates as a democratic republic with a presidential system. Ferdinand Marcos Jr. became president in June 2022, marking the return of the Marcos family to power after decades. The country has a bicameral legislature—the Senate, with 24 members, and the House of Representatives, with 316 members—both playing an active role in shaping national policy.
Infrastructure
The Build Better More program continues to push forward major infrastructure development, with an estimated US$ 23 billion allocated for public projects in 2024. Notable projects include the ongoing construction of the Metro Manila Subway and the New Manila International Airport, which is set to cost US$ 15 billion.
Business Environment
The Philippines’ business environment has also improved, with the country rising to 59th in the World Bank’s Ease of Doing Business Index in 2023, up from 95th in 2020. Foreign Direct Investment (FDI) saw a significant boost, reaching nearly US$ 11 billion in 2023, with the manufacturing, real estate, and renewable energy sectors attracting significant attention.
13 Reasons Why You Should Establish a Business in the Philippines
You can establish a business in the Philippines and take advantage of its strategic location, growing economy, young workforce, government incentives, and many other reasons that make the country an ideal place for business growth.
1. Strategic Location in Southeast Asia
By establishing a business in the Philippines, you can benefit from the country’s central location in Southeast Asia and easy access to key markets across Asia and the Pacific. Its strategic proximity to major trade routes makes it an ideal hub for global expansion, with the country just 749 miles from Taiwan, 1,465 miles from Singapore, 1,478 miles from Malaysia, 1,924 miles from China, and 1,918 miles from Japan.
2. Growing Economy and Market Potential
You can also take advantage of the Philippines’ rapidly growing economy and expanding middle class to establish a business in a thriving market. With rising consumer demand and a booming service sector, you will be strategically positioned to tap into significant growth potential.
3. Access to a Young and Talented Workforce
When you establish a business in the Philippines, you’ll gain access to a young, highly educated, and English-speaking workforce. The country’s talent pool is ideal for industries like information technology (IT), healthcare, tourism and hospitality, and customer service.
4. Government Incentives for Foreign Investors
Establishing a business in the Philippines means you can take advantage of government incentives, including tax breaks and special economic zones. Agencies like the Philippine Economic Zone Authority (PEZA) and Board of Investments (BOI) will help you navigate these benefits to make your investment more rewarding.
5. Cost-Effective Business Operations
The Philippines offers cost-effective operations, from lower labor costs to affordable real estate rentals. By establishing a business here, you’ll save on overhead expenses while benefiting from a growing infrastructure.
6. Thriving Startup Ecosystem
If you prefer to establish a business in a dynamic environment, the Philippines offers a thriving startup ecosystem with plenty of incubators, accelerators, and funding options. This support will help you grow and scale your startup business efficiently.
7. Robust Infrastructure and Connectivity
With improved infrastructure like better road networks, airports, and seaports, establishing a business in the Philippines is easier than ever. Plus, strong internet and mobile connectivity will ensure smooth operations of the digital infrastructure for your business.
8. Attractive Real Estate Opportunities
When you establish a business in the Philippines, you will have access to growing real estate opportunities in cities like Manila, Cebu, and Davao. The availability of office spaces and industrial zones will give you flexibility in setting up your business.
9. Strong Government Support for Business Growth
The Philippine government is committed to easing the process of establishing and running a business, with reforms like the Ease of Doing Business Act (R.A. 11032). You will receive support from various government agencies that will help you navigate the setup process and scale up your business with ease.
10. Favorable Tax System and Reforms
Establishing a business in the Philippines offers you a favorable tax system, including competitive corporate tax rates. The ongoing tax reforms will help create an even more business-friendly environment and further encourage growth and success.
11. Access to the Growing BPO Industry
The Philippines is a global leader in business process outsourcing (BPO), which means establishing a business in this sector can reduce your operational costs. A skilled and highly educated workforce will help you achieve efficiency and growth in the BPO industry.
12. Expanding Tourism and Hospitality Sector
If you establish a business in the tourism or hospitality sector, you can tap into the Philippines’ booming tourism industry. With millions of visitors every year, there are countless opportunities for growth in these industries.
13. Strong Cultural and Economic Ties with the U.S. and Other Countries
By establishing a business in the Philippines, you can benefit from the country’s strong cultural and economic ties with the United States and other countries. These international connections will provide valuable trade opportunities and help you expand your business globally.
In the end, you can easily establish a business in the Philippines and take advantage of a young, growing population, a strategic location in Asia, and a skilled, bilingual workforce. With improving infrastructure, a supportive government, and rising foreign investments, the Philippines offers a promising environment for your business to thrive.
… and you might just need our assistance.
At FilePino, we simplify the process of establishing your business, ensuring compliance with all legal requirements. Our team of experts provides end-to-end support—from registration to regulatory compliance—so you can focus on your investments and growth strategies.
Ready to establish a business in the Philippines? Set up a consultation with FilePino today! Call us at (02) 8478-5826 (landline) and 0917 892 2337 (mobile) or send an email to info@filepino.com.
