Philippines — Business: Company Formation

Key facts

• Outside the areas on the Foreign Investment Negative List, non-Philippine nationals may own up to 100% of a domestic-market enterprise; the Negative List caps foreign equity at 40% in listed areas.
• Domestic-market enterprises with paid-in capital below USD 200,000 are reserved to Filipinos, reduced to USD 100,000 where advanced technology is used or at least 50 direct employees are hired.
• The Foreign Investments Act (RA 7042) was amended by RA 11647; the details of that amendment were not confirmed, so check the current text and Negative List.
• SEC registration steps were not covered by the sources reviewed.

Steps

1. Step 1: Choose a Business Entity — Select the most suitable business entity type for your company, considering factors such as liability, taxation, and ownership structure.
2. Step 2: Prepare Required Documents — Gather necessary documents, including articles of incorporation, bylaws, and a detailed business plan.
3. Step 3: Register with the SEC — Submit the required documents to the SEC for processing and registration.
4. Step 4: Obtain Necessary Licenses and Permits — Secure necessary licenses and permits from relevant government agencies, depending on the nature of your business.