Frequently Asked Questions
about Foreign-owned Companies
and Investments in the Philippines
For More Questions
A: Yes, foreigners may invest in the Philippines in accordance with Republic Act (RA) No. 7042 or the Foreign Investments Act of 1991 and the Foreign Investment Negative List (FINL).
The FINL enumerates economic areas and activities where foreign equity or ownership is limited to a maximum of forty percent (40%). It has two sublists: List A, which, and List B, which. As per RA No. 7042, the list is amended at least every two years. President Rodrigo Duterte signed the 11th FINL last October 29, 2018.
A: Yes, foreign ownership of corporations is allowed. Companies with more than forty percent (40%) foreign ownership catering to the Philippine local market are usually required to have a minimum paid-in capital of USD200,000.00.
Export enterprises are exempt from the USD200,000.00 paid-in capital requirement.
File an application with the Securities and Exchange Commission, with the proposed Articles of Incorporation, By-laws, and Treasurer Affidavit.
A: Depending on whether the business needs a secondary license or not, it now takes around 2 months to register a business with the SEC, and another 4 weeks to obtain local business permits.
SEC fees depend on the amount of authorized capital at time of incorporation, after incorporation documentary stamp tax on issuance of original shares should be paid. Then local business permits must be obtained, cost is determined by the size, length and amount of rental.
A: Yes, foreigners who are legal residents of the Philippines may open bank accounts in various currencies. Some banks will open accounts for tourists but only in a foreign currency.