Complete Guide to Setting Up in an Industrial Park in the Philippines
Setting up a business inside an industrial park in the Philippines offers advantages such as strategic industrial park in the Philippines , reliable infrastructure, access to logistics, and government incentives. Whether you are a local investor or a foreign company, choosing the right industrial park and following the proper steps can significantly impact your operations. This guide explains everything you need to know, from selecting a site to completing legal requirements.
What Is an Industrial Park?
An industrial park is a designated area developed to support manufacturing, logistics, warehousing, and technology operations. These parks provide ready-built facilities, utilities, transportation access, and industry-focused services. Many parks in the Philippines are registered under agencies such as PEZA, BOI, or private developers.
Why Set Up in a Philippine Industrial Park?
1. Strategic Location
Industrial parks are situated near major highways, airports, and seaports, making logistics and export operations more efficient.
2. Incentives for Investors
PEZA-registered parks offer tax holidays, duty-free importation of equipment, and simplified customs procedures.
3. Ready Infrastructure
Businesses gain access to stable power supply, water systems, waste management, and high-speed internet.
4. Skilled Labor Force
The Philippines offers a large English-speaking workforce trained in manufacturing, engineering, and technical fields.
5. Business-Friendly Environment
Parks provide security, administrative support, environment compliance assistance, and onsite transport networks.
Step-by-Step Guide to Setting Up in an Industrial Park
Step 1: Identify Your Business Requirements
Start by evaluating the type of operation you plan to run. Consider the following:
Product type or service
Production volume
Space requirements
Utility needs such as power, water, and wastewater
Proximity to suppliers or customers
Having a clear operational requirement helps narrow down your park options.
Step 2: Choose the Right Industrial Park
There are several types of industrial parks across the Philippines, including economic zones, technology parks, logistics hubs, and export processing zones. Evaluate parks based on:
Location and accessibility
Lot or facility availability
Incentives offered
Developer reputation
Labor availability
Environmental compliance systems
Visit the site if possible to observe infrastructure quality and overall environment.
Step 3: Review Incentives and Regulatory Options
Foreign and local companies may choose to register under agencies such as:
Philippine Economic Zone Authority (PEZA)
Board of Investments (BOI)
Freeport Zone Authorities
Each option provides varying tax incentives, import exemptions, and regulatory frameworks. Understanding these benefits helps investors reduce costs and streamline processes.
Step 4: Secure a Lease or Purchase Agreement
After choosing a location, negotiate land lease terms or rent a ready-built facility. Common agreements include:
Long-term land lease
Ready-built factory leasing
Build-to-suit arrangements
Ensure the contract covers utility access, road infrastructure, security, and waste management.
Step 5: Complete Permits and Registrations
Businesses must comply with national and local government requirements such as:
Business registration with SEC or DTI
LGU permits including mayor’s permit and building permits
Environmental Compliance Certificate (ECC)
PEZA or BOI registration if applicable
Developers typically assist clients in processing permits to speed up the setup.
Step 6: Build or Fit Out Your Facility
Depending on your agreement, you may need to construct a facility or modify an existing one. Make sure the design complies with:
Building code
Fire protection standards
Environmental and safety regulations
Industrial parks often have engineering teams to guide construction and ensure compliance.
Step 7: Begin Operations
After completing legal obligations and facility setup, you can begin production or logistics operations. Industrial parks also offer additional services such as:
Security and safety inspections
Wastewater treatment
Logistics coordination
Onsite utilities management
These services help maintain smooth and efficient operations.
Tips for Choosing the Best Industrial Park in the Philippines
Compare lease rates and facility options before finalizing.
Consider future expansion opportunities in the area.
Check the reliability of the power and water supply.
Evaluate the availability of workforce within nearby communities.
Review the park’s environmental compliance systems.
Conclusion
Setting up in an industrial park in the Philippines is a strategic choice for companies that want efficient operations, cost savings, and access to skilled labor. By choosing the right park, taking advantage of incentives, and following proper procedures, businesses can establish a strong base for long-term growth. This guide serves as a comprehensive starting point for investors planning to expand or relocate to the Philippines.