Doing Business in BGC
For companies considering setting up offices in Metro Manila, the main advantage of Bonifacio Global City (BGC) over other locations is that BGC is a well-planned and executed urban center, thus providing employees with a pleasant and safe working environment when they reach BGC. There is affordable housing for skilled workers nearby, and a lot of high-end accommodation for company executives including expatriate staff. There is also a high concentration of international schools in the area to entice expat families to move to BGC.
BGC is currently under the administration of Taguig City, even though there is a court ruling in 2013 that declared BGC to be part of Makati City. Taguig City claims to have advantages over Makati City in some business taxes.
For a detailed comparison on the business taxes of the two cities, read here.
According to the same source, a 2011 World Bank survey of 25 cities in the Philippines ranked Taguig City “3rd in terms of ease of starting a business, 2nd in terms of Ease of Dealing with Construction Permits and 6th in terms of Ease of Registering a Property.” In the same study, Makati City ranked 20th, 9th and 21st in the same categories.
The cost of land is high compared with other parts of Metro Manila. Infrastructure connecting BGC to places outside of BGC is not adequate. Workers living farther in Metro Manila suffer the same commuting pressure as workers in Makati City, resulting in productivity loss.
Rent Level: In early 2014, office rent in BGC is around P700-P900 per square meter for top grade offices. (Source: here.)
Supply and Location: According to real estate service company Jones Lang LaSalle, BGC accounted for 46% of a total 285,230 sq. m. of pre-commitments signed as of end-2013. Quezon City came in second with 23%, while Makati City contributed 19%.
Currently, new office buildings under construction include 11th Corporate Center (nearly completed), World Plaza (turnover probably in 2017), Net Park (expected turnover in 2015), W City Center (turnover expected in 2016), High Street South Corporate Towers (turnover expected in 2017), One World Place (completing in 2014/5) and One Park Drive (turnover expected in 2017).
Government Offices and Procedures:
To see a list of requirements for starting a new company in Taguig, please see this very useful page prepared by the World Bank: read here. The list is daunting, and the actual procedure is even more complicated, but that can be said about doing business anywhere in the Philippines. Taguig City Hall has a satellite office on the 3rd floor of Market! Market! a popular mall in BGC, for businesses to apply for or renew their business permits.
Taguig City official website is: here.
Bureau of Internal Revenue (BIR) has a branch office in Bonifacio Global City, namely Regional District Office No. 44 – Taguig- Pateros, located at 3rd Floor, Bonifacio Technology Center, 31st Street corner 2nd Avenue, Bonifacio Global City. BIR's official website is: here.
Your company and your new staff can get their very important TIN numbers there, so that you can credit income tax withheld from their payroll to their BIR account, and also have a TIN for your company to meet the numerous BIR filing requirements.
Apart from BIR filings, companies in the Philippines have to file returns and contributions to the Social Security System, PhilHealth and Pag-IBIG for their staff. Unfortunately, not all the banks in BGC accept SSS payments, and even fewer for PhilHealth and Pag-IBIG. This is a general problem for businesses in the Philippines, not just BGC, though.
Bonifacio Technology Center also known as "Yellow Building."