{"id":32838,"date":"2016-09-21T06:01:08","date_gmt":"2016-09-21T06:01:08","guid":{"rendered":"https:\/\/prelive.ceosuite.com\/blog\/are-you-a-foreigner-or-with-a-foreign-registered-company-planning-to-put-up-a-business-in-the-philippines\/"},"modified":"2026-10-02T02:21:33","modified_gmt":"2026-10-02T02:21:33","slug":"are-you-a-foreigner-or-with-a-foreign-registered-company-planning-to-put-up-a-business-in-the-philippines-2","status":"publish","type":"blog","link":"https:\/\/prelive.ceosuite.com\/en-th\/blog\/are-you-a-foreigner-or-with-a-foreign-registered-company-planning-to-put-up-a-business-in-the-philippines-2\/","title":{"rendered":"Are you a foreigner or with a foreign-registered company planning to put up a business in the Philippines?"},"content":{"rendered":"\n<div block-name=\"ceo-blog-detail\"\n    class=\"ceo-blog-detail md:pt-[60px] pt-10 pb-20 \">\n    <div class=\"container\">\n        <div class=\"container-xs\">\n            <div class=\"mb-[21px]\">\n                <a href=\"https:\/\/prelive.ceosuite.com\/en-th\/blog\/\"\n                    onclick=\"if (document.referrer &#038;&#038; document.referrer.includes(window.location.hostname)) { window.history.back(); return false; }\"\n                    class=\"inline-flex text-body-small font-normal leading-[150%] text-black group\">\n                    <img decoding=\"async\" src=\"https:\/\/prelive.ceosuite.com\/wp-content\/themes\/ceo-suite\/resources\/images\/icons\/back.svg\" alt=\"back\"\n                        class=\"object-contain mr-2 group-hover:-translate-x-1 transition-transform\">\n                    <span>Back<\/span>\n                <\/a>\n            <\/div>\n            <div class=\"border-b border-b-natural-stroke pb-10\">\n                <h1\n                    class=\" heading5-small font-semibold text-black  leading-[normal] mb-[10px]\">Are you a foreigner or with a foreign-registered company planning to put up a business in the Philippines?<\/h1>\n                <div\n                    class=\"flex items-center flex-wrap justify-between pb-[10px] mb-5 border-b border-b-natural-stroke\">\n                    <div class=\"flex items-center\">\n                                                    <a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/prelive.ceosuite.com\/en-th\/blog\/are-you-a-foreigner-or-with-a-foreign-registered-company-planning-to-put-up-a-business-in-the-philippines-2\/\" target=\"_blank\"\n                                class=\"w-9 h-9 min-w-9 inline-flex items-center justify-center aspect-square md:mr-4 mr-2 last:mr-0 hover:opacity-70 transition-opacity\">\n                                <img decoding=\"async\" src=\"https:\/\/prelive.ceosuite.com\/wp-content\/themes\/ceo-suite\/resources\/images\/blog\/facebook.svg\"\n                                    alt=\"facebook\" class=\"object-contain\">\n                            <\/a>\n                        \n                                                    <a href=\"https:\/\/www.linkedin.com\/shareArticle?url=https:\/\/prelive.ceosuite.com\/en-th\/blog\/are-you-a-foreigner-or-with-a-foreign-registered-company-planning-to-put-up-a-business-in-the-philippines-2\/&#038;title=Are%20you%20a%20foreigner%20or%20with%20a%20foreign-registered%20company%20planning%20to%20put%20up%20a%20business%20in%20the%20Philippines?&#038;summary=&#038;source=CEO%20Suite\" target=\"_blank\"\n                                class=\"w-9 h-9 min-w-9 inline-flex items-center justify-center aspect-square md:mr-4 mr-2 last:mr-0 hover:opacity-70 transition-opacity\">\n                                <img decoding=\"async\" src=\"https:\/\/prelive.ceosuite.com\/wp-content\/themes\/ceo-suite\/resources\/images\/blog\/linkedin.svg\"\n                                    alt=\"linkedin\" class=\"object-contain\">\n                            <\/a>\n                        \n                                                    <a href=\"https:\/\/www.instagram.com\/\" target=\"_blank\" class=\"w-9 h-9 min-w-9 inline-flex items-center justify-center aspect-square md:mr-4 mr-2 last:mr-0 hover:opacity-70 transition-opacity\" rel=\"noopener\">\n                                <img decoding=\"async\" src=\"https:\/\/prelive.ceosuite.com\/wp-content\/themes\/ceo-suite\/resources\/images\/blog\/mdi_instagram.svg\"\n                                    alt=\"mdi_instagram\" class=\"object-contain\">\n                            <\/a>\n                        \n                                                    <a href=\"javascript:void(0)\" onclick=\"copyLink()\"\n                                class=\"w-9 h-9 min-w-9 inline-flex items-center justify-center aspect-square md:mr-4 mr-2 last:mr-0\">\n                                <img decoding=\"async\" src=\"https:\/\/prelive.ceosuite.com\/wp-content\/themes\/ceo-suite\/resources\/images\/blog\/link.svg\" alt=\"link\"\n                                    class=\"object-contain\">\n                            <\/a>\n                                            <\/div>\n                    <div>\n                        <span\n                            class=\"text-eyebrow font-medium leading-[160%]  inline-block uppercase text-grey-dark\">Sep 21, 2016<\/span>\n                    <\/div>\n                <\/div>\n                <div class=\"mb-5\">\n                                            <img decoding=\"async\" src=\"https:\/\/prelive.ceosuite.com\/wp-content\/uploads\/2026\/09\/Collage-for-Expats.jpg\" alt=\"Are you a foreigner or with a foreign-registered company planning to put up a business in the Philippines?\" class=\"aspect-[1200\/688] object-cover w-full\">\n                                    <\/div>\n                <div class=\"text-body-extra-small font-normal leading-[160%] text-grey blog-content\">\n                    <h2>Here are some smart tips on foreign ownership\/equity restrictions to get you started:<\/h2>\n<p>The Philippines has been traditionally known to restrict foreign ownership of companies to 40% of total equity only, with 60% equity reserved for citizens. The government, however, has initiated actions in the past to relax this rule in order to attract foreign investments to help grow the country\u2019s economy.<\/p>\n<p>This guide is intended to help prospective foreign investors and\/or their local partners or agents to determine how much foreign equity is allowed in their line of business.<\/p>\n<div>\n<p><strong>1. First thing to check: Foreign investment negative lists<\/strong><\/p>\n<p>The first law liberalizing foreign investments (Foreign investment act of 1991) resulted in the creation of a foreign investment negative list (FINL) that seeks to define restrictions on foreigner\u2019s and foreign companies\u2019 economic activities in the country.<\/p>\n<p>The FINL is regularly updated and is now on its tenth revision to reflect new laws. The list is divided into two as follows:<\/p>\n<p>[accordions_dd expanded=&#8217;0&#8242;]<br \/>\n[accordion_dd title=&#8217;Negative List A&#8217;]<\/p>\n<h5>Limits On Foreign Ownership As Mandated By Constitution And Other Laws<\/h5>\n<p><span style=\"text-decoration: underline\">No Foreign Equity<\/span><\/p>\n<ol>\n<li>Mass Media except recording<\/li>\n<li>Practice of Professions\n<ul>\n<li>Pharmacy<\/li>\n<li>Radiologic and X-Ray technology<\/li>\n<li>Criminology<\/li>\n<li>Forestry<\/li>\n<li>Law<\/li>\n<\/ul>\n<\/li>\n<li>Retail trade enterprises with paid-up capital of less than $2.5 Million<\/li>\n<li>Cooperatives<\/li>\n<li>Private security agencies<\/li>\n<li>Small-scale mining<\/li>\n<li>Utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic zones as well as small-scale utilization of natural resources in rivers, lakes, bays, and lagoons<\/li>\n<li>Ownership, operation and management of cockpits<\/li>\n<li>Manufacture, repair, stockpiling and\/or distribution of nuclear weapons<\/li>\n<li>Manufacture, repair, stockpiling and\/or distribution of biological, chemical and radiological weapons and anti-personnel mines<\/li>\n<li>Manufacture of firecrackers and other pyrotechnic devices<\/li>\n<\/ol>\n<p><span style=\"text-decoration: underline\">Up to Twenty Percent (20%) Foreign Equity<\/span><\/p>\n<ol>\n<li>Private radio communications network<\/li>\n<\/ol>\n<p><span style=\"text-decoration: underline\">Up to Twenty Five Percent (25%) Foreign Equity<\/span><\/p>\n<ol>\n<li>Private recruitment, whether for local or overseas employment<\/li>\n<li>Contracts for the construction and repair of locally-funded public works\n<ul>Infrastructure\/development projects in RA 7718:<\/p>\n<li>Projects which are foreign funded and required to undergo international competitive bidding<\/li>\n<li>Contracts for the construction of defense-related structures<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><span style=\"text-decoration: underline\">Up to Thirty Percent (30%) Foreign Equity<\/span><\/p>\n<ol>\n<li>Advertising<\/li>\n<\/ol>\n<p><span style=\"text-decoration: underline\">Up to Forty Percent (40%) Foreign Equity<\/span><\/p>\n<ol>\n<li>Exploration, development and utilization of natural resources<\/li>\n<li>Ownership of private lands<\/li>\n<li>Operation of public utilities<\/li>\n<li>Educational institutions other than those established by religious groups and mission boards<\/li>\n<li>Culture, production, milling, processing, trading except retailing, of rice and corn and acquiring, by barter, purchase or otherwise, rice and corn and the by-products thereof<\/li>\n<li>Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municipal corporations<\/li>\n<li>Facility operator of an infrastructure or a development facility requiring public utility franchise<\/li>\n<li>Operation of deep sea commercial fishing vessels<\/li>\n<li>Adjustment companies<\/li>\n<li>Ownership of condominium units<\/li>\n<\/ol>\n<p>[\/accordion_dd]<br \/>\n[accordion_dd title=&#8217;Negative List B&#8217;]<\/p>\n<h5>Limits On Foreign Ownership For Reasons Of Security, Defense, Risk To<br \/>\nHealth And Morals And Protection Of Small-Medium Scale Enterprises<\/h5>\n<p><span style=\"text-decoration: underline\">Up to Forty Percent (40%) Foreign Equity<\/span><\/p>\n<ol>\n<li>Manufacture, repair, storage, and\/or distribution of products and\/or ingredients<br \/>\nrequiring Philippine National Police (PNP) clearance:<\/p>\n<ul>\n<li>Firearms, parts of firearms and ammunition therefore, instruments or implements used or intended to be used in the manufacture of firearms<\/li>\n<li>Gunpowder<\/li>\n<li>Dynamite<\/li>\n<li>Blasting supplies<\/li>\n<li>Ingredients used in making explosives<\/li>\n<li>Telescopic sights, sniper scope and other similar devices<\/li>\n<\/ul>\n<\/li>\n<li>Manufacture, repair, storage, and\/or distribution of products requiring<br \/>\nDepartment of National Defense (DND) clearance:<\/p>\n<ul>\n<li>Guns and ammunition for warfare<\/li>\n<li>Military ordinance and parts thereof<\/li>\n<li>Gunnery, bombing and fire control systems and components<\/li>\n<li>Guided missle\/missle systems and components<\/li>\n<li>Tactical aircraft, parts and components<\/li>\n<li>Space vehicles and component systems<\/li>\n<li>Combat vessels and auxiliaries<\/li>\n<li>Weapons repair and maintenance equipment<\/li>\n<li>Military communication equipment<\/li>\n<li>Night vision equipment<\/li>\n<li>Stimulated coherent radiation devices, components, and accessories<\/li>\n<li>Armament training devices<\/li>\n<li>Others as may be determined by the Secretary of the DND<\/li>\n<\/ul>\n<\/li>\n<li>Manufacture and distribution of dangerous drugs<\/li>\n<li>Sauna and steam bathhouses, massage clinics and other activities regulated by law because of risks posed to public health and morals<\/li>\n<li>All forms of gambling except those covered by investment agreements with PAGCOR<\/li>\n<li>Domestic market enterprises with paid-in capital of less than the equivalent of USD$200,000<\/li>\n<li>Domestic market enterprises which involve advanced technology or employ at least 50 direct employees with paid-in equity capital of less than the equivalent of US$100,000<\/li>\n<\/ol>\n<p>[\/accordion_dd]<\/p>\n<p>[\/accordions_dd]<\/p>\n<\/div>\n<div>\n<p><strong>2. Domestic Corporations and Subsidiaries<\/strong><\/p>\n<p>Up to 100% foreign ownership is allowed for domestic corporations that:<\/p>\n<ul>\n<li>Are not part of the foreign investment negative lists\n<p>*Note that retail businesses (selling directly to consumers) with less than $2.5 Million in paid-up capital is listed under Negative List A.<\/li>\n<li>Have at least the peso equivalent of USD $200,000 in paid-in equity capital.\n<ul>This amount can be reduced to USD $100,000 if :<\/p>\n<li>the enterprise employs 50 employees or<\/li>\n<li>if it will be using \u201cadvanced technology\u201d\u2014to be determined by the Department of Science and Technology.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n<div>\n<p><strong>3. Retail Trade Enterprise<\/strong><\/p>\n<p>Retail Trade Enterprise are businesses that sell directly to consumers.<\/p>\n<p>Under the law (<a href=\"https:\/\/www.doe.gov.ph\/sites\/default\/files\/pdf\/ocsp\/ra_8762.pdf\" target=\"_blank\" rel=\"noopener\">RA 8762 &#8211; Retail Trade Liberalization Act of 2000<\/a>) , up to 100% foreign ownership is allowed for retail trade enterprises for two categories of businesses:<\/p>\n<ul>\n<li>Category A: Have a paid-up capital of USD 2.5 Million or more<\/li>\n<li>Category B:Specializing in high end or luxury products, provided that the paid-up capital per store is not less than USD 250,000.00 (Sec. 5 of R.A. 8762)<\/li>\n<\/ul>\n<p>Additional qualification requirements for foreign retailers can be found below:<\/p>\n<ul>\n<li>Parent company with USD 200M net worth (USD 50M net worth for luxury brands)<\/li>\n<li>At least 5 branches or franchises around the world OR at least one store capitalized at a minimum of USD $25M<\/li>\n<li>Five year track record in retailing; and<\/li>\n<li>Only nationals from, or juridical entities formed or incorporated in Countries which allow the entry of Filipino retailers shall be allowed to engage in retail trade in the Philippines.<\/li>\n<\/ul>\n<p>Finally, all retail trade enterprises under category A that exceeds 80% foreign equity must list and offer a minimum of 30% equity in any stock market in the Philippines. This should be done within 8 years from the company\u2019s start of operations.<\/p>\n<\/div>\n<div>\n<p><strong>4. Export Businesses<\/strong><\/p>\n<p>100% foreign ownership is allowed for export businesses, as long as it doesn\u2019t fall under the negative lists. A business is considered as an export business if at least 60% of its output or sales are exported.<\/p>\n<p>Call centers, BPOs, KPOs, back offices and similar businesses can all be considered as export businesses provided they adhere to the output rule.<\/p>\n<p>Export businesses can also claim tax incentives via various laws (EO 226 \/ Board of Investments, PEZA law, and other economic zone laws)<\/p>\n<\/div>\n<div>\n<p>We wish to remind the reader that this content should serve as a rough guide only and not to be used as proper legal advice. Please get in touch with an attorney to get specific advice for your situation.<\/p>\n<\/div>\n                <\/div>\n            <\/div>\n            \n                            <div class=\"mt-20\">\n                    <h4 class=\"heading5 font-semibold text-grey mb-10\">Recent Posts<\/h4>\n                    <div class=\"grid lg:grid-cols-3 sm:grid-cols-2 2xl:gap-10 gap-6\">\n                            <div class=\"overflow-hidden\">\n        <a href=\"https:\/\/prelive.ceosuite.com\/en-th\/blog\/global-connectivity-using-our-network-as-your-regional-passport-2\/\" class=\"block group\">\n            <div class=\"overflow-hidden\">\n                <img decoding=\"async\" src=\"https:\/\/prelive.ceosuite.com\/wp-content\/uploads\/2026\/07\/Discover-how-CEO-SUITEs-network-of-premium-workspaces-across-Asia-1024x683.png\"\n                    alt=\"Global Connectivity: Using Our Network as Your Regional \u201cPassport\u201d\" class=\"aspect-[380\/298] object-cover w-full 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