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Expanding Your Business in the Philippines with EOR Services 

employee meeting about business expansion in the philippines

If you’re eyeing your next long term business expansion in the Philippines, that would be a sound decision! The business landscape of the Philippines offers a myriad of opportunities for growth and expansion. Clearly, the country’s economic growth, young and educated workforce, and strategic location make it an attractive destination for businesses.  

However, navigating the intricacies of business expansion in the Philippines can be complex for foreign companies. Dealing with different laws, cultural nuances, and an unfamiliar business environment can be challenging. Moreover, the process of establishing a legal entity, recruiting employees, setting up payroll, and ensuring compliance with local regulations can be time-consuming and costly. This is where the role of an Employer of Record (EOR) like CORE comes into play.  

Whether you are a small start-up or an established multinational corporation, business expansion in the Philippines can be made easier with EOR services

Reasons To Doing Business in the Philippines  

The country has become an attractive destination for companies looking to expand their operations because of the following: 

Access to High-Quality Talents 

The Philippines is known for its highly skilled and English-proficient workforce, making it an ideal destination for companies seeking top-notch talent. Additionally, the country offers access to a vast pool of skilled professionals across various industries, including IT, customer service, finance, and more. The Philippine economy benefits from this abundance of talent, producing thousands of graduates in science, technology, engineering, and mathematics (STEM) fields every year, providing companies like you with a talent pipeline ready to meet their needs. 

Low Labor Costs 

One of the most attractive aspects of expanding in the Philippines is its competitive labor costs. The cost of living in the country is lower than in many Western countries, resulting in significantly lower wage expectations for skilled professionals and support staff alike. This cost advantage allows you to maintain high-quality operations while keeping expenses in check, ultimately leading to increased profitability. Moreover, the resilience and growth potential of the Philippine economy amplify its appeal as a strategic business hub. 

Strategic Business Location 

The Philippines’ strategic location in Southeast Asia offers companies a gateway to the rapidly growing Asian market in the long term. With its proximity to major economies like China, Japan, South Korea, and ASEAN member states, businesses can easily access a vast consumer base and establish a regional presence. Moreover, the country has strong trade relations with these nations, making it an attractive hub for international trade and investment. 

Ongoing Infrastructure Development 

The Philippine government has been heavily investing in infrastructure development, with numerous projects aimed at improving transportation, logistics, and connectivity, boosting the Philippine economy. These developments include upgraded airports, ports, roads, and telecommunications networks. Such investments not only enhance the ease of doing business but also create new opportunities for companies involved in infrastructure-related sectors. 

Public Service Act 

Considering business opportunities in the Philippines is increasingly attractive, thanks to recent amendments to the Public Service Act. These changes open up more sectors to foreign investment under the Public Service Act, including telecommunications, transportation, and power generation, which were previously restricted to local entities. This legislative update aims to boost competition, innovation, and service quality, making the Philippines a strategic choice for international businesses looking to expand in Southeast Asia.

Things to Consider Before Expanding Your Business in the Philippines  

Indeed, the Philippines’ business landscape is diverse and vibrant, with opportunities in various sectors, including IT, software development, healthcare, manufacturing, retail, and real estate. The country is known for its robust consumer market, but what sets it apart is its young, English-speaking workforce with a strong work ethic. The Philippine economy thrives on these strengths.

However, navigating this landscape can be tricky if you’re unfamiliar with it. The country’s business laws, regulations, and cultural norms can be vastly different from what you’re accustomed to. Furthermore, the process of setting up a business, hiring staff, and ensuring compliance with local laws can be a daunting task, especially when considering the long term business operations. When planning your business expansion in the Philippines, you must weigh some crucial factors to ensure successful operations. 

When planning your business expansion in the Philippines, you must weigh some crucial factors to ensure successful operations. 

  1. Understanding Local Regulations: Before making a move, familiarize yourself with the business and employment laws of the Philippines. This includes tax regulations, labor laws, and compliance requirements. 
  1. Finding the Right Talent: The Philippines has a diverse and talented workforce. However, attracting and retaining the right talent can be a challenge. An Employer of Record (EOR) can help you navigate this process smoothly. 
  1. Cultural Sensitivity: Understanding and respecting the local culture is paramount. This goes beyond language – it’s about understanding work ethics, societal norms, and business etiquettes. 
  1. Infrastructure and Logistics: Consider the practicalities of setting up operations. This includes the state of local infrastructure, internet connectivity, office spaces, and ease of travel. 
  1. Cost Analysis: Be sure to conduct a thorough cost-benefit analysis. This should include salary expectations, cost of living, tax implications, and potential return on investment. 
  1. Choosing an EOR Solution: An EOR can take care of all hiring, payroll, and legal compliance, allowing you to focus on your business. Ensure that the EOR you choose has a strong presence in the Philippines, a deep understanding of local laws and customs, and a proven track record. 
business expansion in the Philippines with happy employees
Image by pressfoto

Benefits of Using Employer of Record Services for Business Expansion 

What is an Employer of Record? An Employer of Record is a service provider that handles all the administrative, legal, and HR aspects of hiring and managing employees in a foreign country. It essentially becomes the legal employer for your staff on your behalf, taking care of everything from payroll and benefits to compliance with local labor laws, without you needing to open a local entity. 

Using an Employer of Record service for your business expansion in the Philippines offers key benefits:  

Easy and fast setup  

Setting up a team in a new country can take much of your time and effort. With the help of EOR services, you can avoid many bureaucratic hurdles and start operating in the Philippines within days or weeks rather than many months or even years. Your EOR provider will have all the requirements in control. 

Hire employees quickly and compliantly 

The EOR takes care of all HR-related tasks for you. This includes recruiting and hiring employees, managing payroll and benefits, and ensuring compliance with local labor laws. 

Save time and costs 

By using an EOR, you can bypass the process of establishing a legal entity in the Philippines, which can be time-consuming and expensive. This allows you to start operating in the country more quickly and at a lower cost. Plus, you’ll get to acquire quality talents without allotting too much on overhead costs. 

Provide local knowledge and expertise 

They understand the local business culture, employment laws, and labor market. This can help you navigate the complexities of the local business environment and avoid costly mistakes. 

Example of How Employer of Record Service Helps a Global Business 

Imagine you’re a US-based tech company looking to expand into the Philippines. You want to tap into the country’s pool of talented IT and software development professionals but you’re uncertain about navigating the complex local employment laws. 

Once you are partnered with an EOR service provider like CORE, this company will handle all HR-related tasks on your behalf, including recruiting and hiring employees, managing payroll and benefits, and ensuring compliance with local labor laws. The EOR will also provide valuable local business knowledge and expertise, helping you navigate the complexities of the country’s business environment. 

With this EOR partnership, you can compliantly establish a presence in the Philippines, saving time and money. You will also be able to focus on key business strategies, while your EOR partner is taking care of the administrative aspects of your employment. 

Business Expansion Strategies Made Easy with Employer of Record Services 

As the world becomes increasingly globalized, businesses are looking to expand their operations beyond their home countries. If you’re looking to grow your business in the Philippines, employer of record services can pave the way for you. However, navigating the local business environment can be complex. By leveraging EOR services, you can simplify the process, save time and money, and concentrate more on other significant business strategies. 

An EOR can handle all HR-related tasks, provide valuable local knowledge and expertise, and help you legally and compliantly hire employees in the Philippines. Whether you’re a small business or a large corporation, an EOR can pave the way for your successful business expansion in the Philippines. 


Frequently Asked Questions (FAQs)

Q1: What is the process for establishing a legal entity in the Philippines, and how does it compare to using an EOR? 

Establishing a legal entity in the Philippines involves complex paperwork and registration. Using an EOR streamlines the process as the EOR becomes the legal employer, eliminating the need for a local entity. 

Q2: How does compliance with labor laws impact hiring and employee management in the Philippines? 

Compliance with labor laws in the Philippines ensures fair treatment of employees, covers working hours, benefits, and employment contracts, and is essential for legal operations. 

Q3: What are the key challenges foreign companies may face when expanding into the Philippines?

Foreign companies may encounter challenges related to different laws, cultural nuances, and establishing legal entities, among others. 

Q4: Is EOR assistance suitable for both small startups and large multinational corporations? 

Yes, EOR services can benefit businesses of all sizes, simplifying expansion processes in the Philippines. 

Q5: How can an EOR help with attracting and retaining the right talent in the Philippines? 

EOR services can assist in navigating the local talent market, making it easier to recruit and retain skilled professionals. 


Are you ready to expand your business in the Philippines? Grow your remote team in the Philippines with CORE. Whether you’re looking for people skilled in software development, project management, OutSystems, or back office functions, we got you! Our experienced team can provide comprehensive Employer of Record services, helping you navigate the complexities of the local business environment and succeed in your business expansion. Contact us today to learn more! 

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