A corporation that is majority or wholly owned by Filipinos or foreign investors.
Requires at least 2 to 15 incorporators.
Foreign ownership is allowed up to 100% for certain industries (subject to the Foreign Investment Negative List).
Governed by the Revised Corporation Code of the Philippines.
Minimum Capital Requirements: For a fully foreign-owned company: USD 200,000 (or USD 100,000 if employing at least 50 direct employees or involving advanced technology).
A corporation with a single stockholder, who may be a foreign individual or entity.
No minimum capital required, unless stipulated by specific industry regulations.
Simple governance with no need for a board of directors.
The sole stockholder has limited liability.
An extension of a foreign parent company operating in the Philippines.
Can engage in revenue-generating activities.
Fully liable for the operations and obligations in the Philippines.
Subject to Philippine corporate taxes.
Minimum Capital Requirement: USD 200,000, which may be reduced to USD 100,000 under specific conditions (e.g., creating jobs or using advanced technology).
A non-revenue-generating office established to represent a foreign company in the Philippines.
Focused on activities like market research, liaison, and promotion.
Cannot earn income locally.
Minimum Capital Requirement: USD 30,000.
A foreign entity’s office in the Philippines that supports operations in the Asia-Pacific region.
Provides services like marketing, training, and administrative support to affiliates and subsidiaries.
Cannot directly earn income from the Philippines.
Minimum Capital Requirement: USD 200,000.
A business collaboration between a foreign investor and a Filipino entity, which may operate as a corporation or partnership.
Key Features:
Foreign ownership is subject to the limits outlined in the Foreign Investment Negative List.
Profit and management are shared based on the agreement.
A business owned and operated by a single individual Filipino citizenship .
Requires registration with the Department of Trade and Industry (DTI).
A business owned by two or more individuals or entities.
Foreigners may be partners, but their share in capital and profits is subject to ownership restrictions for certain industries.
Foreign ownership is regulated by the Foreign Investment Negative List(FINL), which outlines industries where foreign equity is restricted or prohibited.
The FINL is divided into two primary categories:
List A: This list includes areas where foreign ownership is limited by the Philippine Constitution or specific laws.
List B: This list covers areas where foreign ownership is restricted for reasons of security, defense, public health and morals, or to protect small and medium-sized enterprises.
Mass media, except for recording and internet-based media.
Practice of professions, unless allowed by reciprocity agreements.
Retail trade enterprises with paid-up capital of less than USD 2.5 million.
Private security agencies.
Small-scale mining.
Utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic zones.
Ownership, operation, and management of cockpits.
Manufacture, repair, storage, and/or distribution of nuclear weapons.
Manufacture of firecrackers and other pyrotechnic devices.
Up to 40% Foreign Ownership Allowed:
Operation of public utilities.
Educational institutions, except those established by religious groups and mission boards.
Ownership of private lands.
Exploration, development, and utilization of natural resources.
Operation of deep-sea commercial fishing vessels.
Government procurement contracts.
