Category Archives: Foreign Investments

New Public Service Act in the Philippines: Primer on House Bill No. 78

Leave a reply | Related posts at the end of article

On 7 January 2020, House Bill No. 78 was filed at the lower house of Congress, proposing amendments to the Public Service Act (Commonwealth Act No. 46), which shall be known as the New Public Service Act. The proposed law seeks to limit the term “public utility” to electricity distribution and transmission sector and the water pipeline and sewerage pipeline system. The New Public Service Act, which also prescribes a mechanism for rate fixing that allows a reasonable rate of return to attract investments into public utilities, was approved on third and final reading on 20 February 2020 and was transmitted to the Senate on 11 March 2020. 

Continue reading →

Doing Business in the Philippines: Registration Regulatory Framework for Foreign Companies

Leave a reply | Related posts at the end of article

Foreign corporations can secure a license to transact business in the Philippines. As defined under the Revised Corporation Code, a foreign corporation is one formed, organized or existing under laws other than those of the Philippines. Based on the principle of reciprocity, a foreign corporation cannot secure a license if its country/state of registration does not allow Filipino citizens/corporations to do business in said country/state. 

Continue reading →

Foreign Company Registration in the Philippines

1 Reply | Related posts at the end of article

Foreign investors who wish to do business in the Philippines has two options in terms of registration. Non-Filipinos can either: (a) secure a license to do business as a foreign corporation in the Philippines; OR (b) register a foreign-owned corporation in the Philippines. A variant of option (b) is to invest in an existing Philippine company. 

Continue reading →

Minimum Paid-Up Capital for Corporations in the Philippines

Leave a reply | Related posts at the end of article

No minimum capital stock is required for stock corporations under the Revised Corporation Code, except when specifically provided by law. The Securities and Exchange Commission (SEC) has a matrix (accessed on 29 March 2020) of the required minimum paid-up capital (paid-up capital is the portion of the authorized capital stock which has been subscribed and actually paid),  according to industry, for the registration of Philippine corporations. This covers foreign-owned domestic corporations, when not covered by the Negative List.

Continue reading →

Application for Registration of Branch Office-Foreign Corporations/Partnerships in the Philippines

Leave a reply | Related posts at the end of article

A foreign corporation, whether stock or nonstock, and a foreign partnership who intend to register a Branch Office or Representative Office in the Philippines must comply with/file the specific requirements, enumerated and discussed below, with the Securities and Exchange Commission (SEC). The application requirements are discussed below.

Continue reading →