The Philippines prestige business world offers a promising market landscape, however, there are hurdles that foreign companies often encounter when getting a virtual office or attempting to establish a physical presence. 

In this blog, we’ll delve into the reasons why foreign businesses face difficulties in setting up an office in the Philippines and explore the innovative solution of virtual offices in the Philippines.

Challenges Faced by Foreign Businesses in the Philippines

Setting up a business in a foreign land can be a thrilling yet challenging endeavor, especially for businesses eyeing the vibrant and diverse market of the Philippines. Recently, CNN reported that the Foreign Direct Investment dwindled by 3.9 percent in June 2023 compared to last year.

Filipinos are aware that foreign businesses provide better services and products while generating more job opportunities. However, the following challenges affect the decisions of other foreign businesses in expanding in the Philippines:

Bureaucratic Red Tape

 The Philippines is known for its bureaucratic processes, which can be daunting for foreign entities. Navigating through permits, licenses, and compliance requirements can be time-consuming and may lead to frustration.

If you know foreign business owners who are still having difficulties starting their expansion here in the Philippines, Cotoha, leading provider of serviced offices in the Philippines, offers assistance to business expansions.

Apart from processing all the paperworks, Cotoha offers its virtual offices in BGC, an ideal start-up office for expanding foreign businesses at a reasonable price. With the recent pandemic, businesses have pivoted and emergence of remote work in the Philippines became more prominent.

Real Estate Challenges

 Finding suitable office spaces in prime locations, such as the bustling Bonifacio Global City (BGC), can be a considerable challenge. High rental costs and limited availability of commercial spaces are common roadblocks.

Today’s modern serviced office providers like Cotoha, you do not need to worry with the increasing rental and maintenance costs as virtual offices in BGC are getting more popular among start-ups and expanding businesses.

Operational Costs

 The cost of maintaining a physical office, including utilities, maintenance, and staff salaries, can add up quickly. For foreign businesses, managing these operational costs can be financially burdensome.

Most foreign businesses opt to invest on business promotions and development rather than building a permanent office set-up. Expanding business today does not need setting up a traditional office. Getting virtual offices in BGC or a co-working space is the trend today to save up significant costs.

If you are looking for affordable virtual offices in the Philippines that offer premium packages, Cotoha got you.

Just choose between the two virtual office packages that we offer: 

• Virtual Standard Package Business Address With 10 hour monthly ACCESS to Conference Room, Mail Delivery Address, Unlimited Coffee, Tea, and Water.

• Virtual Premium Package Business Address With 10 hour monthly ACCESS to Conference Room, Mail Delivery Address, Unlimited Coffee, Tea, and Water, Mail forwarding and parcel, and scan services.

Market Competition

Another challenging thing that makes foreign businesses face when expanding in the Philippines is the market competition. It is already given that our local businesses are thriving.

Start-ups and emergence of micro to small enterprises are providing incredible products and services for reasonable prices.

For foreign businesses to thrive in the Philippines, it is essential for them to keep their branding engaging for the audience.

Since foreign businesses are facing difficulties in getting their own offices, here’s a practical solution that they consider. Getting virtual offices in BGC or co-working space is an ideal investment to make so they can successfully start their operations in the Philippines.

Getting Virtual Offices in BGC as a Business Solution

Enter the concept of virtual offices, a revolutionary solution that addresses many of the challenges faced by foreign businesses in the Philippines.

Flexibility and Cost Efficiency

 Virtual offices in BGC provide the flexibility to establish a presence without the need for a physical space. This significantly reduces overhead costs, allowing businesses to allocate resources more efficiently to promotions and business development.

Professional Business Address

 

Virtual offices in the Philippines offer prestigious business addresses, such as those in BGC, enhancing the company’s credibility and reputation. This is particularly beneficial for businesses aiming to make a strong first impression in the competitive market.

Productivity Made Easy through Co-Working Spaces in BGC

Many virtual office providers offer co-working spaces in prime locations like BGC. This allows businesses to have a physical workspace whenever needed, fostering collaboration and providing a professional environment for meetings.

Cotoha: Bridging Language Gaps

As a leading provider of services offices in the Philippines. Cotoha provides expertise in business consultations. With the integration of language processing technologies that we also provide, communication barriers can be overcome. Cotoha’s advanced language capabilities facilitate smoother interactions and bridge the gap between foreign businesses and their local counterparts.

Is Expanding Your Business in the Philippines Worthwhile?

If you are thinking if expanding a business in the Philippines is worth it, yes it is! The nation has one of the largest economies in the Association of Southeast Asian Nations and a growing customer base with rising purchasing power (ASEAN).

Aside from it’s booming economy, the Philippines is ideal for foreign investments because of the following key advantages:

• Strategic Location
• High-caliber workforce
• Developing infrastructure
• Tax Relief, Exemptions, and Business Incentives
• Low Cost Yet Progressive Economy
• Booming Real Estate Industry

While the challenges of setting up a physical office in the Philippines may seem daunting, the adoption of virtual offices offers a practical and strategic solution. By leveraging the benefits of virtual offices, foreign businesses can navigate the intricate landscape of the Philippines, establish a strong presence, and tap into the immense opportunities that this dynamic market has to offer.