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27 minutes ago, Whalewatcher said:

Thank you all! 

We are here to help but hope you will still listen if stuff comes in but I think the link to a PDF on Starting a business might be good reading for you.

 Lots of Hoops and hurdles for you but Best of Luck;

 

http://invest.cfo.gov.ph/pdf/part2/securing-business-permits-and-business-registration.pdf

 

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9 minutes ago, Jack Peterson said:

We are here to help but hope you will still listen if stuff comes in but I think the link to a PDF on Starting a business might be good reading for you.

 Lots of Hoops and hurdles for you but Best of Luck;

 

http://invest.cfo.gov.ph/pdf/part2/securing-business-permits-and-business-registration.pdf

 

thumbs-up-homer.png

 

 

I appreciate it! Will look into it.

Salamat and all the best to you too :)

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17 hours ago, Whalewatcher said:

This amount should be enough for me to build about a 80 m2 hostel, shouldn't it?  I am looking for long term lease about 500 m2 of land, where I could possibly expand on later on.

Yes.

There will be 9 people who tell you don't do it because its too risky for every 1 person who tells you go for it if you are young enough to give it a go and risk losing it all.  I am on the fence because I do not know you.  I will go so far as to say what your are planning is possible but unlikely to happen without getting ripped off.  Scamming foreigners out of their money is a "business as usual" filipino pastime.  Also, the 2 mill I mentioned was a starting point where you may be able to get it done, not the high end of where you should be.

I also notice you mentioned lawyers.  They are the worst of the bunch and will push your cost up well over the 2 million.  Lawyers here are great for paperwork and great for "greasing the skids" and for some things they are necessary  but they do think its fair game to separate a foreigner from his money and they are best used as sparingly as possible.  There are people who will do what you need done without ripping you off.  You cannot find the right people by Googling but they are there.

Another comment, get the right visa.  Don't start the business on a tourist visa.  Make the business big enough to employ 10 filipinos and get yourself a SPECIAL VISA FOR EMPLOYMENT GENERATION (SVEG)

Does your forum name of Whalewatcher have anything to do with where and why you want to set up a hostel?

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2 minutes ago, Dave Hounddriver said:

Yes.

There will be 9 people who tell you don't do it because its too risky for every 1 person who tells you go for it if you are young enough to give it a go and risk losing it all.  I am on the fence because I do not know you.  I will go so far as to say what your are planning is possible but unlikely to happen without getting ripped off.  Scamming foreigners out of their money is a "business as usual" filipino pastime.  Also, the 2 mill I mentioned was a starting point where you may be able to get it done, not the high end of where you should be.

I also notice you mentioned lawyers.  They are the worst of the bunch and will push your cost up well over the 2 million.  Lawyers here are great for paperwork and great for "greasing the skids" and for some things they are necessary  but they do think its fair game to separate a foreigner from his money and they are best used as sparingly as possible.  There are people who will do what you need done without ripping you off.  You cannot find the right people by Googling but they are there.

Another comment, get the right visa.  Don't start the business on a tourist visa.  Make the business big enough to employ 10 filipinos and get yourself a SPECIAL VISA FOR EMPLOYMENT GENERATION (SVEG)

Does your forum name of Whalewatcher have anything to do with where and why you want to set up a hostel?

Of course that there is a risk and I guess that is why many people do not take it. My main concern is that I won't be there to supervise everything since I will have to be working to pay off the loan. Another option that I have been thinking about is to start saving now the same amount that I'd have to pay monthly for the loan, without taking one and in 3 years to invest the money but they would not be more than 2 mill pesos. At the same time 3 years is a long time for me to start building. I am almost 34 now, have been paying for University and travelling till now, which is the reason why I could not put any money aside.

No, my idea is for Siargao or Eastern Samar, I'm into surfing :)

Thank you for the visa tip!

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18 minutes ago, Whalewatcher said:

My main concern is that I won't be there to supervise everything

Remember that any foreigner(s) can only own a maximum of 40% of the shares in the corporation that will be "real" owner/operator of your business (assuming you are complying with the laws).  So you have a couple of choices, most opt for "silent partners" for the balance of the 60% ownership but if you have a Philippine citizen who you trust enough to take on as an "active partner" then that may be the solution.  Just a thought because you had preciously mentioned.

4 hours ago, Whalewatcher said:

talk to a friend living there if she'll be willing to help me out with supervision of the construction.

This does not mean giving 60% of the company to your friend, but (just throwing this out there) if you owned 40% of the company and your friend owned 12% and you had 4 other "silent partners" who owned 12% each then all you ever need is one person on your side to run things your own way.  I know that is getting complex but the point is, if you are going to trust this person to supervise the construction then bring them on board.

Who are the silent partners?  Usually just local people who are paid a small fee whenever the corporation needs to have a vote on something.  They are usually chosen for their ability to say yes to whatever the foreigner wants. :whistling:  ( in effect, the minimum number of registered shareholders in a Philippine corporation is six)

Sorry if I am getting too complex here.  Bottom line is its do-able but risky and depends a lot on what filipinos you have close relationships with.  If there is one you would trust with your money then go for it.

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5 minutes ago, Dave Hounddriver said:

Remember that any foreigner(s) can only own a maximum of 40% of the shares in the corporation that will be "real" owner/operator of your business (assuming you are complying with the laws).  So you have a couple of choices, most opt for "silent partners" for the balance of the 60% ownership but if you have a Philippine citizen who you trust enough to take on as an "active partner" then that may be the solution.  Just a thought because you had preciously mentioned.

This does not mean giving 60% of the company to your friend, but (just throwing this out there) if you owned 40% of the company and your friend owned 12% and you had 4 other "silent partners" who owned 12% each then all you ever need is one person on your side to run things your own way.  I know that is getting complex but the point is, if you are going to trust this person to supervise the construction then bring them on board.

Who are the silent partners?  Usually just local people who are paid a small fee whenever the corporation needs to have a vote on something.  They are usually chosen for their ability to say yes to whatever the foreigner wants. :whistling:  ( in effect, the minimum number of registered shareholders in a Philippine corporation is six)

Sorry if I am getting too complex here.  Bottom line is its do-able but risky and depends a lot on what filipinos you have close relationships with.  If there is one you would trust with your money then go for it.

Very, very helpful advises you are giving me here! I will be seeing her in the end of the month there and I'll see what she says.

Thank you once again, Dave!

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34 minutes ago, Whalewatcher said:

Very, very helpful advises you are giving me here!

 Another thing to remember is that until we know what/where the President decides to act on Pollution, there may well be some Dodgy or suspect land sales, so Due Diligence is required in my mind :shock_40_anim_gif:

 Just a thought to be careful and choose wisely :wink:

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21 hours ago, Whalewatcher said:

My main concern is that I won't be there to supervise everything since I will have to be working to pay off the loan.

A bit off topic but will it be easy to get a loan for a business or construction which ever you wish to call it considering you really have nothing to mortgage as the land wont be in your name, you can not fully own the business etc?

Also have you crunched the numbers? Even if the resort is built which takes time it could be a few years before there is a profit so you may need a lot more money just to sit out that time and pay the overheads.

 

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Posted (edited)

Hello again! I was away in London, so sorry for the late reply.

Here, I can get a personal loan, no need to mortgage anything and the rates are not bad.

And in terms of the numbers, I am in the process of budgeting and researching local fees, salaries and prices. I will base the business plan on a 30% occupancy to be on the safe side and will see how much more I need and whether I will manage to save it.

Thank you for that question!

 

Edited by Whalewatcher
wanted to quote but changed my mind

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