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Ease of Doing Business in the Philippines Compared to All Counties and Countries in Southeast Asia.

Income category: Lower middle income
Population: 83,054,478
GNI per capita (US$): 1,300.00
Informal economy estimate (% GNP): 43.4

Starting a Business (2006)

The challenges of launching a business in Philippines are shown below. Entrepreneurs can expect to go through 11 steps to launch a business over 48 days on average, at a cost equal to 18.7% of gross national income (GNI) per capita. They must deposit at least 1.8% of GNI per capita in a bank to obtain a business registration number.

Dealing with Licenses (2006)

The steps, time, and costs of complying with licensing and permit requirements for ongoing operations in Philippines are shown below. It takes 23 steps and 197 days to complete the process, and costs 113.43% of income per capita.

Employing Workers (2006)

The difficulties that employers in Philippines face in hiring and firing workers are shown below. Each index assigns values between 0 and 100, with higher values representing more rigid regulations. The Rigidity of Employment Index is an average of the three indices.

Registering Property (2006)

The ease with which businesses can secure rights to property is measured below. In Philippines it takes 8 steps and 33 days to register property. The cost to register property there is 5.7% of overall property value.

Getting Credit (2006)

Measures on credit information sharing and the legal rights of borrowers and lenders in Philippines are shown below. The Legal Rights Index ranges from 0-10, with higher scores indicating that those laws are better designed to expand access to credit. The Credit Information Index measures the scope, access and quality of credit information available through public registries or private bureaus. It ranges from 0-6, with higher values indicating that more credit information is available from a public registry or private bureau.

Protecting Investors (2006)

The indicators below describe three dimensions of investor protection: transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), shareholders’ ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) and Strength of Investor Protection Index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection. With this rating, let the investor in the Philippines companies beware.

Paying Taxes (2006)

The effective tax that a medium size company in Philippines must pay or withhold within a year is shown below. Entrepreneurs there must make 59 payments, spend 94 hours, and pay 52.98% of gross profit in taxes.

Paying Taxes (2006)

The effective tax that a medium size company in Philippines must pay or withhold within a year is shown below. Entrepreneurs there must make 59 payments, spend 94 hours, and pay 52.98% of gross profit in taxes.

Trading Across Borders (2006)

The costs and procedures involved in importing and exporting a standardized shipment of goods in Philippines are detailed under this topic. Every official procedure involved is recorded - starting from the final contractual agreement between the two parties, and ending with the delivery of the goods. The Philippines ranking is reasonably high though not as high as 2005 in some areas. But all in all the efficiency is improving from what I have observed, though the survey does not reflect it.

Enforcing Contracts (2006)

The ease or difficulty of enforcing commercial contracts in Philippines is measured below. It takes 25 steps and 600 days to enforce contracts there. The cost of enforcing contracts is 15.96% of debt.

Closing a Business (2006)

The time and cost required to resolve bankruptcies is shown below. In Philippines, the process takes 5.67 years and costs 38.00% of the estate value. The recovery rate, expressed in terms of how many cents on the dollar claimants recover from the insolvent firm, is 4.03.