Southeast Asia is a world leader when it comes to startups, with countries such as Indonesia and Singapore serving as home to some of the biggest unicorns — privately held startup companies valued at US$1 billion or more.
The Philippines, an archipelagic nation located in the heart of Southeast Asia has the potential to become a similar hotspot for startups. This is mainly because of its status as a fast-growing economy — a status that has led the World Bank to dub it as one of the “Most Vibrant” economies in the Asia-Pacific region.
The Philippines spends the most time in the world accessing the internet through smartphones and other mobile devices, according to a study by Google. The Philippines is more than just receptive to new technologies — it avidly embraces them.
High engagement with the internet and social media is one reason why technology-related services such as those related to FinTech are among the most promising start up business ideas in the Philippines.
The Philippines has an increasingly large population with an increasingly large amount of disposable income. Entrepreneurs would only need to hone in on their specific markets with the confidence that there is enough market there to make their business profitable.
The Philippines is no longer just a talent pool that exports low skilled labor. The last couple of decades has seen foreign companies invest in highly skilled employees, whether it be in the medical field or the BPO industry. There is also a rising IT talent pool developing in the Philippines. This technical proficiency, coupled with the Philippines being one of, if not the strongest English speaking country in Asia, provides the right talent for tech startups.
Entrepreneurs who wish to try their hand at startups will have an easier time of it, as they will be assisted in part by the Philippine government.
The recent passage of Republic Act 11337 or the Innovative Startup Act grants subsidies — either full or partial — to qualified startup owners. This subsidy covers the registration of the startup, as well as the application and processing of their necessary permits. Separate grants are also given to cover the startups’ so that they can conduct research and training for employees, as well as expand their business.
One of the things that should be in every entrepreneur’s business startup checklist is filing for protection when it comes to their intellectual property.
The Innovative Startup Act also mandates that startup owners and investors be given assistance with the registration of their intellectual properties to the Intellectual Property Office of the Philippines or IPOPHL.
Qualified tech startup owners and investors can expect to be given subsidies to cover the use of facilities such as office spaces, equipment, and services provided either by the government or the private sector — a significant form of assistance considering the cost of building a space in today’s economy.
The Innovative Startup Act also mandates that the Philippine Economic Zone Authority (PEZA) create Philippine Startup Ecozones or Special Economic Zones that can help facilitate the growth, development, and subsequent expansion of startups in the country.
Much like the country’s other economic zones, these Startup Ecozones will allow startups operating within them to enjoy several perks, such as tax benefits and tax breaks.
The Philippines is currently one of the most promising locations for tech startups — and with good reason. Not only does the Philippines have a tech-savvy population, and a burgeoning middle-class with tremendous spending power, it also has a government that’s open and supportive when it comes to radical business endeavors.
Starting a Business in the Philippines is easy if you have the FilePino team to assist you with all of your business needs.
With its complete and comprehensive set of professional business services, FilePino can help you get a leg up should you plan on operating a business in the Philippines.
Contact the FilePino team today at +1.806.553.6552 or send us a message here for more information.
