Expansion to Philippines: A Complete Guide

The Philippines is a fast-growing economy and a strategic location for expanding your business in Southeast Asia. If you are considering expanding your business to the Philippines, you have two main options: setting up a local entity or using a Global PEO. In this guide, we will explore the advantages of using a Global PEO in the Philippines.

Why You Need to be Interested in Expanding into the Philippines

The Philippines is a highly attractive location for businesses due to its strategic location, highly skilled and educated workforce, and low operating costs. It also has a rapidly growing economy, making it a highly competitive market for foreign investors.

Employer of Record Philippines: Step by Step

An Employer of Record (EOR) is a third-party company that takes care of all your legal and regulatory requirements when employing staff in a foreign country. Here are the steps involved in the EOR process in the Philippines:

  1. Consultation: The first step is to consult with an EOR provider in the Philippines to understand their services and how they can assist you in expanding your business. During the consultation, you can discuss your business goals and determine if an EOR is the best option for your company.
  2. Legal documentation: Once you have selected an EOR provider, the next step is to sign a contract with them. This will include legal documentation such as a service agreement, power of attorney, and a non-disclosure agreement. These documents will outline the services provided by the EOR, the scope of work, and the terms and conditions of the agreement.
  3. Employee onboarding: The EOR will begin the employee onboarding process, which includes hiring, payroll management, and benefits administration. They will take care of all legal and regulatory requirements for employing staff in the Philippines, including taxes, social security contributions, and insurance.
  4. Workforce management: The EOR will manage your employees’ work schedules, monitor their performance, and handle any HR issues that arise. This includes providing training and development opportunities, conducting performance reviews, and managing disciplinary actions if necessary.
  5. Compliance and reporting: The EOR will ensure that your company complies with all Philippine labor laws and regulations. They will also manage all reporting requirements, including tax filings, financial reporting, and other regulatory filings.
  6. Exit strategy: Finally, if you decide to leave the Philippine market, the EOR will help you wind down your operations in compliance with Philippine laws and regulations. This includes terminating employment contracts, settling outstanding liabilities, and deregistering your business.

History of Employer of Record

Employer of Record services have been around for decades, but they have gained popularity in recent years due to the rise of globalization and the need for businesses to expand their operations quickly and cost-effectively. EOR services allow companies to enter new markets without having to set up a local entity, which can be time-consuming and expensive.

Another Alternative: Global PEO

Another alternative to setting up a local entity or using an EOR is to use a Global PEO provider. A Global PEO provider can take care of all your legal and regulatory requirements when employing staff in multiple countries, including the Philippines. The Global PEO provider acts as your employer of record and handles all HR functions, including recruitment, onboarding, payroll, and compliance.

Advantages of using a Global PEO:

  1. Faster Expansion: A Global PEO can help businesses expand into new markets quickly and efficiently, as they handle all legal, HR, and administrative tasks related to hiring employees.
  2. Compliance Management: When expanding into a new market, businesses must adhere to various local laws and regulations. A Global PEO can help ensure compliance with local employment laws, tax requirements, and other regulations.
  3. Cost-Effective: Using a Global PEO can be more cost-effective than setting up a new legal entity in a foreign market. This is because a Global PEO typically handles all the necessary legal and administrative tasks, allowing businesses to avoid the costs associated with establishing a new entity.
  4. Reduced Risk: By working with a Global PEO, businesses can reduce their risk exposure when expanding into new markets. The Global PEO takes on the legal and HR responsibilities, leaving the business free to focus on its core activities.
  5. Flexibility: A Global PEO offers flexibility for businesses that are unsure about their long-term commitment to a new market. By using a Global PEO, businesses can test the waters in a new market without the long-term financial and legal commitments of setting up a new entity.
  6. Access to Local Expertise: A Global PEO provides businesses with access to local expertise, which can be invaluable when expanding into a new market. The Global PEO’s local team can help businesses navigate local employment laws, cultural norms, and business practices.
  7. Simplified Payroll: Global PEOs also handle payroll processing and other HR-related tasks, making it easier for businesses to manage their employees in a new market.

Overall, using a Global PEO can help businesses expand into new markets quickly and efficiently while reducing costs and risks. By providing access to local expertise and handling all administrative tasks related to hiring employees, a Global PEO can help businesses focus on their core activities and achieve their growth objectives.


Expanding to the Philippines can be an exciting opportunity for businesses looking to grow in the Asia-Pacific region. With its large and dynamic economy, the Philippines offers many advantages for businesses that are willing to invest in the market.

While expanding to the Philippines may seem daunting, there are several options available to businesses looking to establish a presence in the country. A Global PEO can be an excellent choice for businesses that want to expand quickly and efficiently while avoiding the costs and risks associated with setting up a new entity.

By providing access to local expertise, handling administrative tasks related to hiring employees, and ensuring compliance with local laws and regulations, a Global PEO can help businesses navigate the challenges of expanding into a new market.

Ultimately, expanding to the Philippines can be a lucrative opportunity for businesses that are willing to invest in the market. With its large and growing economy, favorable business environment, and talented workforce, the Philippines is an attractive destination for businesses looking to expand in the Asia-Pacific region. And by working with a Global PEO, businesses can achieve their growth objectives while minimizing costs and risks.

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