Foreign investors who want to start companies in the Philippines usually choose to work with the local labor force which is quite cheap, very skilled and educated. However, finding the right candidates can prove difficult for foreign businessmen which is why they request the services of recruitment agencies which help them by easing the hiring process. However, there are also many investors who choose the operate in the filed of recruitment and open employment agencies.
Below, our company formation consultants in the Philippines explain the steps for setting up a recruitment agency in this country.
Requirements to register a staffing agency in the Philippines
In order to open a recruitment company, both foreign and local investors must first register one of the types of structures available with the Business Register in the Philippines. Apart from this, there are special requirements to comply with when starting such business.
The following requisites are imposed by the Philippine Overseas Employment Administration (POEA) to foreign investors who want to open employment agencies and bring foreign workers to this country:
– the company must have at least 75% local ownership;
– a minimum capital of 5 million pesos is required;
– a POEA license must be obtained.
The Filipino recruitment agency can be opened under the form of a sole proprietorship, partnership or corporation. Our company registration agents in the Philippines can help investors set up any of the structures above.
As far as accounting is concerned, recruitment companies observe the IAS/IFRS accounting principles and are required to submit annual financial statements which are audited by an independent and certified public accountant. Our team is able to assist with these requirements, in addition to providing companies with complete bookkeeping solutions. Contact our accountants in Philippines for more information.
The employment agency license in the Philippines
As mentioned above, the employment agency license, shortly known as the POEA license is mandatory in the Philippines. The following documents must be filed with the same authority within the Ministry of Labor and Employment in order be licensed as a recruitment company in the Philippines:
– the trade name certificate in the case of sole traders or the company’s certificate of incorporation;
– the bank statement showing the deposit of the minimum share capital;
– a business plan;
– a description of the employment procedures;
– a list with all the employees of the agency;
– a resume of the company’s manager who must have qualifications and experience in the recruitment field;
– proof of payment of the license fee.
One must know that other requirements could apply when filing for a POEA license.
If you want to start a recruitment company and need assistance, please feel free to contact our Philippines company registration advisors.