BUSINESS

Here you find some basic information about business opportunities in the region and general business information for the Philippines.

If you are looking for a serious business opportunity and like living in the tropics, close to a beach and a scuba diving heaven, if you love to work with people and have a background in photography, then this may be your opportunity.

Business description

The business consists of an established professional photo shop in a town living from tourism, mainly scuba diving, and caters to residents, tourists and scuba divers alike. The business includes a Fuji mini lab for 1-hour film development, a digital picture printer, a photo studio and an office box with fax, email and internet services.

This is a business without competition in an area populated with more than 250.000 people and a lot of tourism.

The business generate income by selling photo related products such as prints, re-prints, films, frames, CDs, diskettes, batteries, IDs, cameras, underwater cameras, laminations, computer print services, etc. Additionally, a business service center with internet and fax facilities is set-up inside the photo shop premises.

Since the staff is handling most of the routine tasks like film development, picture printing, photographer services and so on, part of your job is visiting beach resorts and dive centers forging tie-ups for outlets and putting up displays for photo products. Business relationships with several partners in neighboring towns are established. A branch of the photo shop is established in a neighboring town. An additional outlet exists in a PADI 5 Star Dive Center specializing on underwater photography. These partners sell photo products in consignment and collect film rolls for the Photo Shop. A courier travels to the respective partners, using low-cost public transportation , collecting film rolls and distributing the finished print-outs.

The shop has a Fuji franchise	Beaches like these are close	Scuba Divers are regular customers
Busy dive boats at the nearby beach	Photo coverages like Miss Bikini for local fiestas belong to the job	Great nature nearby

Location

The photo center is on the island of Cebu , about 92km south of Cebu City. The main business is located along a national highway near the town center and market, close to an existing Internet Café and opposite a college with more than 1000 students. The photo shop has about 40 square meters and a storefront facing onto the main street. A famous tourist destination with lots of beach resorts and 12 dive centers is just 4 km away.

Reason for sale

The owner, a German national, is heavily involved in several tourism-related businesses and has no time to proper develop and pursuing the original business plan for the photo shop. Additionally, he and his family has to relocate in the foreseeable future for family reason (schooling of kids).

For more information contact Karl at kalle.epp@gmail.com.

If you are interested click here.

----------------------------------------------------------------------------------------------------------------

Some more info on doing business in the Philippines:

Investment Advantages
(from the official website of the Department of Tourism )

Warm, Hospitable People - Gifted with a sunny and contagious smile, the Filipino has a many-splendoured face that reflects varied racial origins - Malay, Chinese, Spanish and American. Friendly by nature, Filipinos have a
special way of making strangers feel welcome. To them, hospitality is both a tradition and an art.

Cultural Diversity - Basically of Malay stock, the Filipino has a sprinkling of Chinese, American, Spanish and Arab blood. From a long history of western colonial rule, interspersed with the visits of foreign merchants and traders, evolved a people that's a unique blend of East and West, both in appearance and culture.

Strategic Location in the Fastest Growing Region in the World - The Philippines is located in the center of Asia, home of the fastest-growing
tiger economies. The archipelago lies southeast of Hong Kong, northeast of Singapore, and almost directly north of Kota Kinabalu, Malaysia, and Bali, Indonesia. Owing to its accessibility and strategic location, the Philippines is a natural mecca of commerce.

Professional Workforce - Filipinos are among the best educated and most
easily trainable people in Asia. They are capable of performing even the
most complicated tasks with world-class competence.

Most fluent in English Among Asians - Among Asians, Filipinos are the most
fluent in written and spoken English. Since English is the world's universal
business language, foreign investors are always pleasantly surprised at the
absence of any language barrier in their dealings with Filipino executives
and workers.

Wide Variety of Scenic Spots - The Philippines is an archipelago blessed
with a wealth of natural resources, a rich history, and a unique culture.
Its attractions are as many as they are diverse - beaches of fine white
sand, lush green forests, majestic mountain peaks, age-old structures,
modern cities, rustic landscapes, and many other attractions.

Shopper's Paradise - The best buys in the country are the many handmade
products, ranging from embroidered garments and linens to coral jewelry
boxes and fashion accessories. There are also good furniture available made
of Philippine wood. One can visit either the city shopping malls which are
among the largest in Asia or the ubiquitous flea markets where bargaining
can be truly a unique experience.

A Recreation and Entertainment Center - The Philippines is truly a balm for
tired souls. For nature lovers, there are treats like mountain climbing,
bird-watching, cave exploration, and even photo safaris. The country also
has numerous parks and challenging golf courses, some of which have been
designed by world-class architects. All the key cities in the Philippines
offer a wide variety of entertainment facilities like concert halls,
theaters and discos.

How To Invest In The Philippines
(by Joaquin Cunanan & Co.)

1. What requirements must be compiled with before a foreign corporation can
engage in business in the Philippines?

Before a foreign corporation can engage in business in the Philippines, it
must first secure the necessary licenses or registration certificates from
the appropriate government agencies. Generally, the registration process
starts with the Securities and Exchange Commission (SEC).

If the proposed project or activity qualifies for incentives, the foreign
investor may file its application with the appropriate government agency
depending on the project's location, as follows :

Board of Investments (BOI) for projects outside any of the special economic
zones (SEZ)
Philippine Economic Zone Authority (PEZA) - for projects to be located in
any of the SEZ's under the PEZA
Subic Bay Metropolitan Authority - for projects to be located in the Subic
Bay Freeport
Clark Development Corporation - for projects to be located in the Clark
Special Economic Zone
Cagayan Economic Zone Authority - for projects to be located in the Cagayan
Special Economic Zone
Zamboanga Economic Zone Authority - for projects to be located in the
Zamboanga City Special Economic Zone

2. Is a foreign investor allowed to own 100% of a business entity?

With the liberalization of the foreign investments law, 100% foreign equity
may be allowed in all areas of investment except financial institutions and
those included in the Foreign Investment Negative List (FINL). Executive
Order (EO) No. 11 has been issued approving the Third FINL which takes
effect on October 24, 1998. This list includes :

List A - areas reserved to Filipinos by mandate of the Constitution and
special laws such as but not limited to :

Mass media except recording, practice of licensed profession, retail trade,
cooperative, small scale mining, etc. where foreign ownership is prohibited.
Advertising, ownership of land, operation and management of public
utilities, etc., where only minority foreign ownership is allowed.
List B - areas that are defense related, those with adverse effects on
public health and morals and domestic market enterprise with paid-in capital
of less than US$2000,000, unless they involve advanced technology or
directly employ at least 50 employees, in which case, the paid-up capital
can be US$100,000 only.

3. What is the general policy of the government on foreign investments? Is
this policy likely to change in the near future?

The government encourages foreign investments which will provide significant
employment opportunities relative to the amount of capital being invested;
and provide a foundation for the future development of the economy.

Investment-related rules have been liberalized to facilitate entry of
foreign investments. This thrust is expected to continue.

4. What are the major incentives available to a registered enterprise ?

An enterprise registered with the Board of Investments pursuant to the 1987
Omnibus Investments Code (EO 226) is entitled to the followed incentives,
among others, subject to certain terms and conditions :

Income tax liability holiday (ITH) for six years for pioneer firms and
generally four years for non-pioneer firms. If a non-pioneer firm is located
in a less developed area, it shall generally be entitled to 6 years ITH.
Firms locating within Metro Manila shall not be granted ITH unless they are
:
Within a government industrial state
Service-type projects with no manufacturing facilities
Power generating plants
Exporters with expansion projects.
Tax credit on raw materials, supplies, and semi-manufactured products.
Additional deduction from taxable income for labor expense (cannot be
simultaneously enjoyed with the ITH incentive)
Additional deduction from taxable income for necessary and major
infrastructure works (cannot be simultaneously enjoyed with the ITH
incentive).
Certain non-fiscal incentives are also available to registered enterprises,
among which are : employment of foreign nations, guaranteed repatriation of
foreign investments and earnings thereon, and importation of consigned
equipment for an unlimited period subject to posting of a re-export bond.
The Special Economic Zone Act of 1995, mandates the PEZA to operate,
administer, manage and develop Special Economic Zones or Ecozones.

Business enterprises operating within Ecozones shall be entitled to the
incentives granted to registered enterprises under Presidential Decree No.
66 or Book VI of EO 226. In addition to the incentives mentioned above for
BOI-registered enterprises, PEZA-registered exporters enjoy tax and duty
exemptions on importations of capital equipment, raw materials and other
merchandise directly needed in its registered operations.

Furthermore, exporters using local materials as inputs shall enjoy the same
benefits provided for in the Export Development Act of 1994. Moreover, in
lieu of paying all local and national taxes, business enterprises within the
Ecozone whose PD 66 or EO 266 incentives have lapsed, shall remit to the
national government a preferential rate of 5% of their gross income as final
tax.

Two other special economic zones were created under two separate special
laws. These are the Cagayan Special Economic Zone and the Zamboanga City
Special Economic Zone. The incentives granted to those that will locate in
these ecozones are similar to the incentives granted to PEZA ecozone
enterprises.

Enterprises allowed to operate within the Subic Bay Freeport (SBF) shall, in
lieu of paying all other taxes, pay a final tax of 5% of gross income
provided their income from local (non-export) sales shall not exceed 30% of
their income from all sources.

Enterprises locating within the Clark Special Economic Zone (former American
Airbase at Clark Field) and Poro Point Special Economic and Freeport Zone
(former Wallace Air Station and its adjoining areas) are granted incentives
similar to those given to SBF enterprises.

5. Are investment incentives transferable?

In general, investment incentives are not transferable. Tax credit
certificates may, however, be transferred subject to certain conditions.

In the case of tax credit certificates issued pursuant to the Export
Development Act of 1994, said documents are considered negotiable
instruments and may be transferred to any person, natural or juridical,
except to local government units.

For more information, please contact:

Usec. Evelyn B. Pantig
Undersecretary for Planning, Product Dev't. & Coordination Sector
DOT Building
Agrifina Circle, Rizal Park
Manila 1000
Voice:(2) 524 1694
Fax:(2) 521 2968
ebpantig@tourism.gov.ph