Non-Filipinos, including foreign corporations are prohibited from doing business in the Philippines. The foreign corporation or partnership must secure the appropriate license from the Securities and Exchange Commission (SEC) and, in certain instances, from other government agencies.
Continue reading[These definitions are based on Republic Act No. 7042, also known as the Foreign Investments Act of 1991, as amended by Republic Act No. 8179, as well as the Implementing Rules and Regulations of Republic Act No. 7042.]
Continue readingHow much foreign ownership is allowed for mining companies in the Philippines? The Supreme Court again discussed this issue in a recent ruling denying a motion for reconsideration filed by certain mining companies in the Philippines. The controversy is anchored on the requirement that mining, among other activities, is reserved by the Constitution — the highest law of the land — for Filipinos. Sec. 2, Art. XII of the Constitution, which provides that the exploration, development, and utilization of of natural resources is reserved to Filipinos, whether natural persons or juridical persons. Filipino juridical persons refer to “corporations or associations at least sixty per centrum of whose capital is owned by such citizens.”
Continue readingAliens, as a general rule, are not allowed to own real property in the Philippines. By “aliens”, we don’t mean creatures from outer space, but persons who are citizens of other countries. By “general rule”, we mean that there are certain exceptions, and two of such exceptions are discussed below.
Continue readingThere are a number of ways for foreigners to invest directly in a Philippine company doing business in the Philippines, or directly conduct business in the Philippines. Here are some of them:
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