6 Tips in Establishing and Recruiting Teams in the Philippines

Categories: Advice for Doing Business in the Philippines, Advice for Start-ups and Entrepreneurs

Of the many reasons a business owner abroad decides to set up a shop in the Philippines, the one cited the most is the reduced overhead cost. Outsourcing, in general, remains to be one of the most cost-effective methods for getting various tasks done with the least amount of on-the-ground, hands-on effort on your part. Of course, quality work is only possible if you choose the right third-party vendor or freelance worker—and the Philippines has the upper hand in this regard.

But, before you begin the hiring process, it is best to get the registration requirements out of the way first. Following the local incorporation laws and regulations to the letter will eliminate any potentially expensive compliance issues down the line. Begin by registering with the Securities and Exchange Commission (SEC), as this will help verify if your desired company name is available.

Afterwards, follow the necessary steps, which typically include paying the minimum capital, notarizing documents, obtaining a business Tax Identification Number (TIN), Community Tax Certificate (CTC), Barangay clearance, Permits, Books of Receipts, Books of Accounts, and registration with other government agencies such as SSS, PhilHealth, and PAG-IBIG.

For those of you who are keen to establish and recruit teams in the Philippines, make the process easier by keeping these tips in mind.

Obtain All the Required Legal Documents for Easier Processing

First things first: avoid delays caused by incomplete paperwork. Make sure that all your legal documentation is at hand. The steps for establishing and registering a new business in the Philippines can be a long, drawn-out process, but you can cut it short by following the steps to the letter.

For example, obtaining a pre-registered TIN in itself is a 7-step process that requires numerous legal documents. That’s on top of the 15 additional steps you need to endure just to complete the incorporation process.

Know the Local Infrastructure

Have a thorough understanding of the local infrastructure. Don’t take anything for granted and leave no stone unturned. Remember, you’re establishing a business in an emerging market.

In the Philippines, political and economic factors aren’t the only considerations. You must also investigate local transportation and the amount of time your workers might have to spend stuck in traffic. Internet speeds are not yet optimal, and typhoons can interrupt business operations in some areas as well.

Flooding is also a legitimate concern, so you might want to take a look at your business location and ask about the possibility of business suspensions due to knee-deep water clogging the drainage.

Hire the Services of an Expert to Do the Recruitment for You

If you’re establishing a brick and mortar business in the Philippines, it is best to obtain the expertise of a local recruitment consultant to assist you in navigating the operational, cultural, and legal requirements of hiring workers in the Philippines.

Aside from making it easier for you, companies such as Manila Recruitment also have the team recruitment expertise and the network to accomplish these tasks.

Hiring a team search firm not only saves you money, it also ensures that you’ll be employing a set of talent with the experience and skill sets that you are looking for.

Form Meaningful Bonds with the Locals

Widen your social network beyond fellow expats in the Philippines. You’ll become a more effective leader if you make the effort to reach out among Filipinos in a non-work related setting. This way, you get to understand some cultural nuances you might not obtain otherwise.

For instance, the concept of pakikisama is strong among locals, and the typical Filipino worker has a strong family orientation. Many will do anything for the benefit of their immediate and extended family members, and they can treat you like a family member once you’ve earned their trust and confidence.

Adapt to the Business Culture

There are restrictions imposed on other nationalities establishing businesses in the Philippines, wherein ownership of a corporation must have 60% Filipino ownership. That leaves 40% ownership to the foreign businessman, so dealing with the local business culture is inevitable, and successfully adapting to the business culture is practically a necessity.

Aside from helping you develop other potentially profitable contacts, embracing the local business culture will also increase the likelihood that your business will continue to flourish for a long period.

Get to know what it is that motivates the Filipino worker. The spirit of pakikisama must be observed, so cultivating relationships through social activities or making the effort for small talk will pay off in more ways than one.

Seek a Partner to Do the Ground Work for You

Ideally, your Filipino business partner should know the ins and outs of establishing a business, and have the capacity to do all the ground work for you. Find someone trustworthy who has the knowledge and ability to navigate through the HR intricacies, local tax laws, and other compliance issues.

Although English is widely used in business circles, it is helpful to have someone who understands the local dialect, especially if you’re setting up shop outside Metro Manila.

If you’re having a hard time finding a compatible business partner, you might want to consider hiring an executive search firm.

Today’s typical Filipino workers are tech-savvy millennials and digital natives who make up more than half of the general demographic. The country is teeming with a talented and highly qualified workforce, where the majority of the population is under the age of forty.

With employment figures hovering at just 10 percent or lower, this makes for a highly competitive job market. Filipinos are known for their superior grasp of conversational business English, so it’s easier for you to communicate ideas effectively without it getting lost in translation.

Establishing a team in the Philippines will give you the peace of mind knowing that your business is in capable hands, allowing focus on other equally important areas of your business.




Manila Recruitment is recognized as the leading recruitment firm in the Philippines for headhunting, executive search, expert, technical and IT recruitment. We share an unrivalled passion to help your business succeed by understanding your goals, then sourcing and providing you with your number one asset – driven, dedicated and exceptional people!

Experience the Manila Recruitment difference, and give your business in the Philippines a competitive advantage by contacting us today. Whether you are exploring an offshore solution, or are an established entrepreneur, SME or Multinational in the Philippines, our team has the experience and a tailored recruitment solution to introduce you to the top talent in the Philippines.

Contact our Manila Recruitment team at hello@manilarecruitment.com.