Quote for the day:
"The biggest failure you can have in life is making the mistake of never trying at all."
1. Why should I consider doing business in SBGP?
One should consider doing business in SBGP because of the following reasons:
·Strategically located, being at the center of the fastest growing commerce in Asia
. It offers a lot of business incentives
· One of the highest levels of security found in any Philippine economic zone
· Productive, low-cost and English-proficient workers
-US$7.58 minimum daily wage
-More than 700,000 working population in SBF in Subic Bay Freeport and its environment
-Highly trainable workforce
· Industrial peace, no record of labor strikes or unrest
· Quality development infrastructure
. Well-preserved natural environment
2. What business incentives do I get in putting up a business in SBGP?
· Exemption from all local and national taxes with only a 5% final tax on gross income earned computed based on Gross Sales less the following “allowable deductions” depending on the activities such as manufacturing, infrastructure, development and service, in reference to Section 57 of the Rules and Regulations implementing R.A. 7227, as amended by R.A. 9400.
o Raw Materials
o Intermediate goods & finished products
o Production/services supervision salaries o Direct salaries, wages or labor expenses
o Financing charges associated with fixed assets
o Supplies and fuels used in the production/rendering services
o Rent and utility charges associated with buildings and equipment
o Depreciation, lease payments, or other expenditures on building and equipment
· SBF enterprises, depending on the specific type of enterprise, are likewise allowed to deduct some other expenses as specified under the law.
· Tax and Duty-free importations of raw materials, capital and equipment
· Up to 100% foreign ownership.
· No foreign exchange control; full repatriation of profit is allowed.
· Percentage of Income allowable from Sources Within the Customs Territory
SBF Enterprises may generate income from sources within the Customs Territory of
up to thirty percent (30%) of its total income from all sources, provided, that should an SBF Enterprise’s income from sources within the Customs Territory exceed thirty percent (30%) of its total income from all sources, then it shall be subject to the
income tax laws of the Customs Territory; provided, further, that in any case, customs duties and taxes must be paid with respect to income from sales and articles to the Customs Territory
· Visa-free entry for 14 days, and renewable.
· Special Subic-Clark visas available to expatriates.
3. What is the cost of doing business in SBGP?
Cost of Doing Business
Subic Bay Freeport Zone
Exchange Rate: US$ 1.00 = PhP 47.11
As of March 4, 2016
4. How accessible is SBGP?
5. What are the steps in putting up a business in SBGP?
· The applicant shall submit a Letter of Intent, Business Proposal and other necessary documents to the Business & Investment Departments (BIDs)/Marketing Department
Day 2, 3, 4, 5
· The BIDs/Marketing Department, in coordination with other concerned departments shall evaluate the documents.
· The BIDs/Marketing Department shall facilitate the signing of Letter of Conformity (LOC) between the applicant and the Freeport Authority. The LOC shall contain the area, location, lease rate and terms and conditions agreed upon.
· The BIDs/Marketing Department shall submit its recommendation to the CEO based on existing policies, rules and regulations.
· In case of disapproval the BIDs/Marketing Department shall state the specific reason/s for the same and the applicant may file for reconsideration.
Day 6, 7, 8
· Upon the approval of the proposal by the CEO, based on the favorable recommendation of the BIDs/Marketing Department, a 30-Day Business Permit may be issued. In case of disapproval, the same shall be stated in writing, and the applicant shall be allowed to re-submit appropriated requirements for consideration and approval.
Day 9, 10, 11
· The Applicant shall submit other documentary requirements and clearances necessary for the issuance of CRTE/RC.
Day 12, 13, 14
· The applicant and Freeport Zone Authority shall sign the Lease Agreement provided that the lessee has already acquired juridical personality either from Securities and Exchange Commission (SEC) or the Department of Trade and Industry (DTI), in case of local companies; or license from SEC in case of foreign-registered corporation.
· the applicant shall pay the necessary fees.
· The Freeport Authority shall issue the CRTE/RC
6. Who can help me with all the requirements?
· SBDMC, the managing company of SBGP, has been helping its locators/investors set up their businesses at SBGP. SBDMC’s business center can help you from the very start: from finding a location, to the registration of your business, from the construction of buildings to setting up manpower, including visa processing.
7. What other services does SBDMC offer after I set up my business?
· SBDMC also offers legal, engineering, accounting and other professional consultancies. It can help you with your insurance and landscaping needs or sourcing out raw materials for your business.
firstname.lastname@example.org / (047)252-3456 / Argonaut Highway cor. Rizal Highway, Subic Bay Gateway Park, Subic Bay Freeport Zone, 2222
Certification No.: PH15/1221