"The Anti-Dummy law"

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"The Anti-Dummy law"


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Old 29th August 2020, 02:57 AM
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Default "The Anti-Dummy law"

LOCK UP with "The Anti-Dummy law" both concerning
/ businesses
/and some real estate "solutions" rather many attorneys do, which are ILLEGAL!!! Because of course Dummies can't be used legaly to try to get around the Anti-Dummy law

I suppouse no one bother if a foreigner give a SMALL start capital to his Filipina wife (although it isn't legal)
but lock up when it's a bit biger start capital, which isn't likely the Filipina can have saved herself, and the amount obviously coming from the foreigner is biger than the max percentage a foreigner is allowed to own. In legal point of view concerning own business foreigner and Filipina spouse count together as FOREIGNER concerning max allowed OWNING, but Filipinas don't need work permt and can do TASKS foreugners aren't allowed to do. BUT - as often are Phil laws some fuzzy - concerning if Filipina wife to foreigner can be CEO for a company or if THEY interpreet her being as a Dummy, because foreiigners are NOT allowed to have CONTROLL over the highest boss position. (Except PERHAPS in "export business" that's unclear.)

An interpretion of the Anti-Dummy law made by a Filipino law article writer even claim a business isn't even allowed to be dominated by KNOWLEDGE coming from the foreigner!!! IF that's true, that law is IDIOTIC because something the Philippines is very short of is Business UNDERSTANDING...


If starting a business, which COMPEETE against businesses Filipinos have, that add risk even if following the laws, but if not following the laws make it much easier for competitors to make your business closed and/or geting much punnishment, which in some cases can be even jail or deportation even for things we as foreigners perhaps not even understand the Filipinos see as a crime... E g - if it isn't changed recently IF the law makers have unerstood finaly modern acounting is suppoused to be done digital - there is a crazy demand of geting SPECIAL printed reciepts and invoiices SOON after business registration to avoid risking punnishment even if such NEVER will be used in that business!!! (E g in one of the businesses I think of starting it will take YEARS before anything will be sold, but this is demanded to get soom anyway!!! A Filipino had registered a business but it HADN'T started doing anything, but he got punnishment fee for not having that printed within a month anyway!!!)

Even a FILIPINO, who started a computer service business, got crazy problems to get his local business permit extended just because he is TO GOOD!!! There were around 10 competitors in that town when he started, but at next January allready there were only 4 of the others left. One of the left is owned by a Filipino with local power, so he "influenced" the permit handler to come with ridicilous complaints and demands to stop/delaying the permit extension e g complained at Filipinos had peed at OTHER side of the street!!! Don't Filipinos in many towns pee "everywhere"?
(I don't know how it ended, we lost contact. Perhaps he gave up...)

Needing business permit extension EVERY YEAR is ridicilous itself (except when it's sensitive businesses as e g food or dangerous chemicals). In my home country business permits are valid "for ever" except if some SERIOUS law break is done. I have one business permit still since I were in High school back in stone age...

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Old 29th August 2020, 03:59 AM
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And I would ask firstly that you introduce yourself including the, your country that offered the perpetual business registrations (good luck there). A one time fee for millennia? Definitely saves a few bucks.

Cheers, Steve.

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Old 29th August 2020, 05:58 AM
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The recent debacle with ABS- CBN should explain it all.
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Old 29th August 2020, 11:53 AM
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Quote:
Originally Posted by bigpearl View Post
And I would ask firstly that you introduce yourself including the, your country that offered the perpetual business registrations (good luck there). A one time fee for millennia? Definitely saves a few bucks..
My introduction would be as a book by I have done so many things parallell.
(I wrote some in an other topic today when I were asked there.)

Here is a bit more.
Still in Sweden.
I don't need good luck to get for ever registration, because I have had it long time Just needed to report adress changes to the registration when I moved. It's free when moving inside same county and a small fee when moving to an other county.
(Although it was just funny comparing, because new businesses need to be registered when the business decription don't suit anymore. That my first was trading, my second was distribution and PR (sold) and the one I have now do miscelenious services ("thinking" types as e g researches, software production and business consulting.) My second had rather many employees as most 115, but my new one don't have any. When I have filled the business registration forms I have allways ended the descriptions with "etcetera" to cover all if someone would complain The statistics had problem when they tried to put my latest business in ONE category When I started my second it had to be new anyway because that have a better business form than the first one by I can legaly do some types of deals between myself and my business, which I can in my third too.

I don't know what registrations cost now here, but last I made one for a client it was just a bit over 100 usd for this better type, that one is "for ever" too. (The less good similar to Filipino Sole P type cost even less here. AND everything could be done with just 1-2 letters before internet too. One to the business registration and one to VAT if being over the minimum of not needing registration. The registration to "Swedish BIR" is AUTOMATIC when make the business registration. Then need to fill tax forms next year and send there. If having a registrered business not is use, then just need to send a tax form telling it's resting

It's funny Sweden have reputation being very byrocratic but many things are very easy done here
and almost everything can be done at distance from anywhere before internet too.
(E g most Swedes get tax forms PREFILLED by the officials, so most people just need to check it, sign and send, which can be done all through internetsince many years back. So I can fill tax forms for Sweden siting in Phils, but mine is some more complicated and only partly prefilled. I will probably keep my Swedish business registered after the move too if not else to get cost covers for the "prospecting" of the new Phils business before that's registered. Depending of situation I will perhaps make a joint venture between my Swedish business an "my" (partly) business in the Philippines although that would be extra complicated, so I need to think of if it's worth the extra work. But on the other hand then can the machinery used in Phils be owned by my Swedish company, which would make it harder to scam me of. I mean legaly

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Old 30th August 2020, 01:06 AM
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Quote:
Originally Posted by Lunkan View Post
My introduction would be as a book by I have done so many things parallell.
(I wrote some in an other topic today when I were asked there.)

Here is a bit more.
Still in Sweden.
I don't need good luck to get for ever registration, because I have had it long time Just needed to report adress changes to the registration when I moved. It's free when moving inside same county and a small fee when moving to an other county.
(Although it was just funny comparing, because new businesses need to be registered when the business decription don't suit anymore. That my first was trading, my second was distribution and PR (sold) and the one I have now do miscelenious services ("thinking" types as e g researches, software production and business consulting.) My second had rather many employees as most 115, but my new one don't have any. When I have filled the business registration forms I have allways ended the descriptions with "etcetera" to cover all if someone would complain The statistics had problem when they tried to put my latest business in ONE category When I started my second it had to be new anyway because that have a better business form than the first one by I can legaly do some types of deals between myself and my business, which I can in my third too.

I don't know what registrations cost now here, but last I made one for a client it was just a bit over 100 usd for this better type, that one is "for ever" too. (The less good similar to Filipino Sole P type cost even less here. AND everything could be done with just 1-2 letters before internet too. One to the business registration and one to VAT if being over the minimum of not needing registration. The registration to "Swedish BIR" is AUTOMATIC when make the business registration. Then need to fill tax forms next year and send there. If having a registrered business not is use, then just need to send a tax form telling it's resting

It's funny Sweden have reputation being very byrocratic but many things are very easy done here
and almost everything can be done at distance from anywhere before internet too.
(E g most Swedes get tax forms PREFILLED by the officials, so most people just need to check it, sign and send, which can be done all through internetsince many years back. So I can fill tax forms for Sweden siting in Phils, but mine is some more complicated and only partly prefilled. I will probably keep my Swedish business registered after the move too if not else to get cost covers for the "prospecting" of the new Phils business before that's registered. Depending of situation I will perhaps make a joint venture between my Swedish business an "my" (partly) business in the Philippines although that would be extra complicated, so I need to think of if it's worth the extra work. But on the other hand then can the machinery used in Phils be owned by my Swedish company, which would make it harder to scam me of. I mean legaly
Reading over that post I’m reminded of the comments from an economics lecturer to his students after delivering a particularly difficult subject:
“If you understood what I said just now, you haven’t been listening properly”.
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Old 30th August 2020, 07:39 AM
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Quote:
Originally Posted by pagbati View Post
Reading over that post I’m reminded of the comments from an economics lecturer to his students after delivering a particularly difficult subject:
“If you understood what I said just now, you haven’t been listening properly”.
Well. It isn't important anyone understand THAT post which you answered, because that's just off topic stuff Bigpearl asked about,

BUT if you have/think of geting real estate or business in the Philippinem then it's important to understand what I wrote about "The Anti Dummy Law" to reduce risk geting big mess/fooled by attorney.

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Old 30th August 2020, 10:55 AM
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And,,,,,, never start a sentence with and. My earlier submission was to introduce yourself,,,,,,, to the forum, members then perhaps we will read the same books you do.

Cheers, Steve.
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Old 30th August 2020, 03:09 PM
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Quote:
Originally Posted by bigpearl View Post
My earlier submission was to introduce yourself,,,,,,, to the forum, members then perhaps we will read the same books you do..
Do you mean writing "Biography" "A few details about yourself" with space for a few letters?
Not even space there to write the main "keywords" which wouln't say much.
Special for me is I have done very different types of things, partly depening of I like different types of challenges. E g one challenge was geting a book approved and paid by a publishing company. (Done).
No kids, which have made I have had time to do more different things. But now it's time to get kids at age 67

In the Biography there isn't even space for these examples of what I have done:
Broken knees. Elite sports aren't healthy
Own businesses since I were 24yo. (Well. Correct is the first I registerred in High school but that was to get big discount at wholesales of candy
Lead two clubs from bottom to Swedish elite.


Quote:
Originally Posted by bigpearl View Post
And,,,,,, never start a sentence with and.
Well. A tiny bit of my Biography is I have written rather much for newspapers during the years. Newspapers want short sentences even when the correct would be long so in newspapers it's common to start "sentenses" with words as "And" and "But".
I write much different style when writing for newspapers than when I write documents to courts!!! A third type is for forums.

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Old 30th August 2020, 03:30 PM
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But now this topic has been turned to be about me instead of the for foreigners - who buy real estate or start business - very impostant "Anti Dummy law", so better back to that

Many foreigners have been FOOLED and charged for by attorneys concerning this in the Philippines!!! But IF lucky these illegal "solutions" will never been checked.

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Old 30th August 2020, 10:42 PM
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The anti dummy law is designed to close all the loopholes. If you are found to have used some special trick to get around ownership laws, for example putting the land in the name of a local who does not actually own the land, setting up a corporation in such a way that you get around the 60/40 ownership laws then all transactions are deemed to have not legally occurred.

In practice I think that this means that the land you bought will revert to the original owner and the original owner will owe you the money back.

Good luck collecting on that debt.

Best to stick to doing all your transactions in ways that meet the spirit of the laws. Don't look for loopholes or the work around. Here the law has a lot more "flexibility" than in the west so keep it 100% clean legally.

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