Philippine corporations operate within their registered purpose; expansion requires amendments, affecting ownership, capital, and regulation. Foreign investment rules specify capital requirements, restrictions, and tax benefits.

Operating Limitations and Expansion Requirements

A Philippine corporation can only operate within the purposes outlined in its Articles of Incorporation, registered with the Securities and Exchange Commission under the Revised Corporation Code. Any expansion into a substantially different activity requires an amendment to the purpose clause. This process involves a thorough review of ownership eligibility, capital classification, and regulatory compliance, as it may affect the company’s legal standing and operational scope.

Capital Requirements for Retail and Domestic Enterprises

Retail trade businesses with foreign involvement generally need a paid-in capital of US$2.5 million, with specific thresholds of US$250,000 per store in certain cases. If the activity falls into a restricted sector, an equity restructuring must be undertaken before amending the purpose clause. For foreign-owned domestic market enterprises, a minimum paid-in capital of US$200,000 is typically required, which can be lowered to US$100,000 upon meeting employment or certified technology criteria. Export-oriented firms are exempt from this threshold.

Foreign Investment Regulations and Tax Incentives

Under the Foreign Investments Act, enterprises registered with the Philippine Economic Zone Authority or the Board of Investments may qualify for income tax holidays lasting four to seven years, and occasionally a 5% tax on gross income. However, income from activities outside the approved scope could be taxed at the standard corporate rate of 25%, or 20% for qualified small domestic corporations, which could impact overall tax obligations within a single legal entity.

The rate of joblessness edged up to 5.2 per cent between October and December

The labour market continued to loosen in the final quarter of last year, official figures show, with wage growth easing and unemployment climbing steadily higher. The rate of joblessness edged up to 5.2 per cent between October and December, according to the Office for National Statistics (ONS), the highest level since early 2021 and marginally above market expectations.

The number of workers on company payrolls also fell by 46,000 compared to the previous quarter, with provisional estimates suggesting a further 11,000 jobs were shed in January.

“The number of workers on payroll fell further in the final quarter of the year, reflecting weak hiring activity, although it is largely unchanged in the latest month,” said Liz McKeown, director of economic statistics at the ONS.

Jonathan Raymond, investment manager at Quilter Cheviot, said the labour market was “showing signs of creaking when economic growth is difficult to come by”, as reported by City AM.

The labour market has faced pressure in recent months as businesses wrestle with the additional costs of hiring imposed by the government, including a rise in payroll taxes and an elevated minimum wage.

Businesses are also concerned by the prospect of the Employment Rights Act, with a recent survey indicating that a third of firms would cut back on hiring as a consequence of the measures. The easing labour market also resulted in slower wage growth, increasing the likelihood that the Bank of England will reduce interest rates in March.

Average earnings including bonuses decelerated to 4.2 per cent in the final quarter of the year, down from 4.6 per cent previously. City economists had anticipated it to remain roughly stable.

Excluding bonuses, average wages increased by 4.2 per cent over the period, lower than the previous figure of 4.4 per cent but in line with expectations.

McKeown observed that private sector wage growth was at its lowest rate in five years, whilst public sector figures remained “elevated” as some of last year’s pay awards continue to feed into the statistics.

Yael Selfin, chief economist at KPMG UK, stated the data “raises the prospect” of a March rate cut.

“The MPC will be reassured by further evidence of pay pressures easing, and the labour market continuing to soften. The Bank may also want to minimise downside risks to the labour market and lower rates ahead of the next forecast meeting in April,” she said.

Paul Dales, chief UK economist at Capital Economics, concurred that the chances of a March rate cut had risen.

“The lack of green shoots of recovery in the labour market and further fall in wage growth supports the idea that the Bank of England has at least a couple more interest rate cuts in its locker, with the chances of the next cut happening in March rather than April edging higher,” he said.

Sterling slipped 0.3 per cent versus the dollar after the data release, signalling that markets believe rate reductions are becoming more probable.

The coffee shop will open next month after a fit-out

Work on a new Starbucks drive-thru in Kingsway, Gloucester, has reached practical completion. The coffee shop is part of a huge redevelopment scheme at an old RAF base. The masterplan for the 340-acre site includes 3,300 homes, a 40-acre employment area, community and leisure facilities, retail, sports area and primary school.

Boddington-based property and investment firm Robert Hitchins developed the 1,744 sq ft drive-thru and coffee shop, in partnership with contractors EG Carter, at the entrance to Kingsway in Naas Lane.

Michael Plimmer, senior development manager for Robert Hitchins, said: “This a major milestone for us as the new Starbucks Drive Thru represents the final phase of Kingsway’s commercial centre which Robert Hitchins has developed over recent years.

“It is great to see Starbucks join other big brands that Robert Hitchins has brought to Kingsway – including Asda, Lidl, Pure Gym, B&M, MKM and Greene King – providing excellent sustainable shopping and leisure facilities for local people and businesses in the area.”

The Magic Bean Company – a Starbucks franchisee – has agreed a 20-year lease of the new development. The coffee shop will be fitted out and will open its doors on March 13.

Melissa Allen, central operations manager at The Magic Bean Company, said: “We’re really pleased to be a part of this exciting redevelopment and to bring Starbucks to the busy area of Quedgeley. We’re looking forward to serving the community and creating careers for local people.”

Contractor EG Carter has been working on the site since June 2025. Thomas Jones, construction director at EG Carter, said: “Reaching practical completion is a great milestone for everyone involved. This has been another well-coordinated project delivered in close partnership with our client Robert Hitchins Ltd and the wider team, and we’re proud of the quality of the finished building.

“The new Starbucks creates a strong gateway into Kingsway and will be a valuable addition for the local community. We now look forward to seeing the fit-out progress and the site come to life for customers.”