The rapidly developing production of processed foods and drinks in the Philippines represents a strong opportunity for foreign investors. In 2016, the gross-added output of this industry increased with 10% compared to the previous year, to USD 28.9 billion. Around 90% of the output in the sector is consumed by the local market. In this article, our company formation advisors in the Philippines explain different aspects related to manufacturing food products in the Philippines.
The food processing sector in the Philippines
The food production accounts for almost 50% of the entire output of the manufacturing industry in Philippines, which subsidizes around 24% of the yearly GDP (gross domestic product).
Rising by approximately 10% yearly, the food manufacturing industry in the Philippines has been recognized by the local government as a priority industry for attracting foreign investments under special economic areas. Our company registration consultants in the Philippines can provide assistance for entrepreneurs who are interested to open a company in the Philippines in this sector.
Starting with 2016, the food manufacturing development in the Philippines is the fastest growing in the ASEAN (Association of Southeast Asian Nations).
The Japanese External Trade Organization (JETRO) declared that the country has become a main destination for Japanese manufacturing companies, due to its low production expenses, which are considered as being the lowest in Asia.
Also, the labor productivity in this country has developed largely by as high as 6% in 2015.
Licenses and approvals for manufacturing food products in the Philippines
Prior to obtaining certain licenses which are specific for manufacturing food products in the Philippines, there are certain basic registration requirements for companies intending to operate in the country.
An individual or a company which wants to operate in the Philippines, including manufacturers, importers, traders, distributors and exporters of food, have to obtain the corresponding registration or license from the SEC (Securities and Exchange Commission) – for both local and foreign companies – or the Department of Trade and Industry (DTI), for sole proprietorships.
Our Philippines company registration agents can provide more details on the licenses required for manufacturing food products in the Philippines.
If you have more questions about the Philippine food industry, or for help in starting a business in the Philippines, please do not hesitate to get in touch with our friendly staff.
Our team can also answer questions about the conditions under which foreign business owners can move to Philippines. This option is subject to clear requirements that depend on whether or not the applicant’s country of origin has signed a treaty that grants the same privileges to Filipinos. For this purpose, a temporary resident visa is applied for as a first step for immigration.