Online Business registered in Philippines, owner temporary based in Canada

[Dien Chin]

Hello fellow Entrepreneurs,

I have a question that I've been trying to vigourously search but cannot get an answer that is specific to my needs. Hope someone out there can lend their knowledge.


I am planning to start an online shop. I am planning to register my ONLINE business in Philippines as a Sole Propriertorship but I, myself, will be based in Canada for a couple of months prior to my move to Philippines.

The question is: Since I am living in Canada and of Canadian citizen. Do I even have to register my online business in Canada since I have already registered in Philippines? Being it an e-commerce site where there is no boundaries in terms of market (ie. worldwideweb) I think I dont need to register with my Province in Canada

Since there will be money transactions do I have to register with the Canada government department of sales and revenue tax? Or with Philippines? Does it depend on what currency I am selling and making transactions with that I register with that country's government?

Sorry if I have left some pertinent information out,I hope you get the notion

If not please ask and I will provide more detail as best as I can

Thanks for the help and time for providing your advice

Sincerely,

Dien Chin

[Will]

Hi
Think of it like this - a company is a totally separate entity to you. It doesn't matter about you or where you are from, the only time Canada comes in to play is if you pay yourself a wage from the business - and then you would need to pay income tax in Canada if you are based there. That is unless you already had the right to work/be taxed in the Philippines. Canada doesn't need to have anything to do with the business.

With just a sole proprietorship it is linked directly to you, so you should talk to an accountant or business formation company in the Philippines to see what your best option is (sole proprietorship VS limited liability company). Sole prop has limited expansion abilities and if you are looking to do business worldwide online, I would suggest a company is the way to go instead - though as I said best to ask a local accountant in the area you will set the business up in.

[Dien Chin]

Hi Will from Brisbane,

Thanks for you reply.


I spoke to my friend, and he said something similiar to you.

He told me that I should speak to an accountant in Canada to declare non-residency before registering business in Philippines. In Philippines I will be doing a sole propriertorship which is easier entry. I will have a friend that will register on my behalf and will sign over. I am planning to start my endeavour online first while working in Canada prior to my move to build up reserves or find another job while I commence this operation on a part time basis.

What are your thoughts regarding the scenario to what you have spoke about. Secondly, obtaining an accountant is hard for me since I am not situated there. I hear it is not necessary. Can you also expand further regarding the sole prop expansion limitation ability. For sole prop, you can still claim business expenses can you not?


Regards,