{"id":5539,"date":"2020-05-01T18:32:00","date_gmt":"2020-05-01T10:32:00","guid":{"rendered":"https:\/\/pnl-law.com\/blog\/?p=5539"},"modified":"2020-06-13T13:10:12","modified_gmt":"2020-06-13T05:10:12","slug":"registration-of-foreign-owned-corporations-in-the-philippines","status":"publish","type":"post","link":"https:\/\/pnl-law.com\/blog\/registration-of-foreign-owned-corporations-in-the-philippines\/","title":{"rendered":"Foreign Company Registration in the Philippines"},"content":{"rendered":"\n

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. <\/p>\n\n\n\n\n\n\n\n

\"Foreign<\/figure><\/div>\n\n\n\n

It is important to note that a non-Filipino is required to register with the SEC (or, for a sole proprietorship, with the Department of Trade and Industry [DTI]) only when it intends to do business in the Philippines. [See What constitutes \u201cdoing business\u201d in the Philippines<\/a>]<\/p>\n\n\n\n

FOREIGN VS. DOMESTIC<\/h2>\n\n\n\n

It is also important to note that the distinction between a foreign corporation and a domestic corporation is based on the place of registration. A domestic company is registered in the Philippines in accordance with Philippine laws. A foreign corporation or partnership is formed, organized and existing under non-Philippine laws. A company registered in the Philippines, even if 100% owned by foreigners, is considered a domestic corporation. It is a foreign-owned domestic corporation<\/strong>.<\/p>\n\n\n\n

A foreign-owned domestic corporation is registered just like any Philippine company, except that: (a) the documents submitted with SEC includes an application to do business under the Foreign Investment Act<\/a> or Republic Act No. 7042; (b) the applicant corporation must comply with the required paid-up capital; and (c) the applicant corporation cannot engage in businesses covered by the Negative List. [See Doing Business in the Philippines: Registration Regulatory Framework for Foreign Companies<\/a>]<\/p>\n\n\n\n

FILIPINO NATIONAL<\/h2>\n\n\n\n

Nevertheless, a 100% foreign-owned corporation, even if considered a domestic company, is not considered as a Philippine national under Philippines laws. A corporation is considered a Filipino corporation if at least 60% of its capital stock outstanding and entitled to vote is owned and held by Filipino citizens. <\/p>\n\n\n\n

NEGATIVE LIST<\/h2>\n\n\n\n

A Negative List, also called the Foreign Investments Negative List<\/a>, is a list of areas of economic activity whose foreign ownership is limited to a maximum of forty percent (40%) of the outstanding capital stock in the case of a corporation or capital in the case of partnership. [See Eleventh Foreign Investments Negative List<\/a>]<\/p>\n\n\n\n

Outside the Negative List, foreign investors may own 100% of a domestic corporation. <\/p>\n","protected":false},"excerpt":{"rendered":"

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 […]<\/p>\n","protected":false},"author":7,"featured_media":8340,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1361,1340],"tags":[1255,234,235,1352,1276,252,579,90,1254,1253],"class_list":["post-5539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-law","category-foreign-investments","tag-corporate-law","tag-corporation","tag-corporations","tag-domestic-corporations","tag-foreign-corporations","tag-foreign-investment","tag-foreign-investors","tag-philippines","tag-republic-act-no-11232","tag-revised-corporation-code"],"_links":{"self":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/5539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/comments?post=5539"}],"version-history":[{"count":7,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/5539\/revisions"}],"predecessor-version":[{"id":8341,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/5539\/revisions\/8341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/media\/8340"}],"wp:attachment":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/media?parent=5539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/categories?post=5539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/tags?post=5539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}