E.O. No. 758 was issued to help generate employment in the country. According to the National Statistics Office there were 2.9 million Filipinos who were unemployed as of  April 2008.

The new visa is called Special Visa for Employment Generation (SVEG).This visa will be issued to non-immigrant foreigners who will employ at least ten Filipinos.  Under this visa program the foreign investor will be considered special non-immigrants with multiply entry privileges and conditional extended stay, without need of prior departure from the Philippines. These privileges are extended to the investors spouse and unmarried children below the age of 18 years.

To facilitate the issuance of Special Visa for Employment Generation (SVEG) the order also includes that the Implementing Rules and Regulations (IRR) shall provide for the establishment of a One-Stop-SVEG Facility within the Bureau of Immigration with the participation of the departments Department of Justice (DOJ), the Department of Finance (DOF), the Department of Trade and Industry (DTI), the Department of Foreign Affairs (DFA), the Department of Labor and Employment (DOLE), the National Intelligence Coordination Agency (NICA).

To see which businesses a foreign investor may open read Philippine Foreign Ownership of Corporation

WHEREAS, there are foreigners who want to maintain a lawful presence in the Philippines by actually directly or exclusively engaging in lawful, viable, and sustainable trade, business, industry, or activity offering local employment;

WHEREAS, according to the April 2008 survey of the National Statistics Office (NSO), there are 2.9
million Filipinos who are currently unemployed;

WHEREAS, creation of job opportunities for the Filipino is one of the advocacies of the Arroyo
Administration under its 10-point Agenda;

WHEREAS, Commonwealth Act (CA) No. 613, otherwise known as the Philippine Immigration Act of
1940, as amended, authorizes the President, when public interest so warrants, to admit as non-
immigrants, foreigners not otherwise provided for by the Act, who are coming for a temporary period only, under such conditions as may prescribed;

WHEREAS, public interest, particularly on an aspect of employment generation for Filipinos warrants the admission of these foreigners as special non-immigrants under Section 47 (a)(2) of CA No. 613, as amended;

NOW, THEREFORE, I GLORIA MACAPAGAL – ARROYO, President of the Republic of the Philippines,
by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Special Visa for Employment Generation (SVEG). – The SVEG is a special visa issued to
a qualified non-immigrant foreigner who shall actually employ at least ten (10) Filipinos in a lawful and sustainable enterprise, trade or industry. Qualified foreigners who are granted the SVEG shall be considered special non-immigrants with multiply entry privileges and conditional extended stay, without need of prior departure from the Philippines.

The privileges of this Executive Order may extend to the qualified foreigner’s spouse and dependent unmarried child/children below eighteen (18) years of age whether legitimate, illegitimate or adopted.

SECTION 2. Who may avail. – Non-immigrant foreigners who wish to avail of the SVEG should comply with the following conditions:

a. The foreigner shall actually, directly or exclusively engage in a viable and sustainable commercial investment/enterprise in the Philippines, exercises/performs management acts or has the
authority to hire, promote and dismiss employees;
b. He evinces a genuine intention to indefinitely remain in the Philippines;
c. He is not a risk to national security; and
d. The foreigner’s commercial investment/enterprise must provide actual employment to at least ten (10) Filipinos in accordance with Philippine labor laws and other applicable special laws.

The above-mentioned requirements must be continually satisfied by the foreigner for him/her to continue to be a holder of the SVEG.

SECTION 3. Application for SVEG. – (a) Upon payment of regulatory fees, the Commissioner of
Immigration shall receive and resolve SVEG applications within fifteen (15) days from the date of filing. Documentary proofs required by the Commissioner of Immigration shall be evaluated and reviewed without strict observance to the technicalities of evidence and procedure.

(b) Upon favourable review, the Commissioner of Immigration shall issue a Notice of Approval directing the foreigner-applicant to report for registration and documentation at the Bureau of Immigration. An Alien Certificate of Registration (ACR) I-Card and an Identification Certification (IC) shall be issued upon payment of appropriate fees. The ACR I-Card and the IC shall indicate among others, the following:

“Status Adjusted without Departure as a Special Non-Immigrant with Multiply Entry Privileges and
Conditional Extended Stay in the Philippines under (this Executive Order)”

(c) Otherwise, the Commission shall issue a Notice of Disapproval informing the foreigner applicant of the denial of his application. Within fifteen (15) days from receipt of such disapproval, the foreigner-applicant may file a motion for Reconsideration (MR) for the review of his application. Only one (1) such Motion shall be entertained.

(d) The Commissioner of Immigration shall monitor the continued compliance by the foreigners of the requirements of the SVEG.

(e) All fees collected by the Bureau of Immigration shall be acknowledged by bonded collecting offices via issuance of official receipts. These collections shall be accounted for as government funds and subject to strict auditing procedures.

SECTION 4. Revocation of the SVEG. – (a) The Commissioner of Immigration shall revoke the SVEG
granted: (i) If the SVEG holder fails to maintain compliance of any of the conditions see forth in Section 2 hereof; (ii) If it was obtained through fraud or willfull misrepresentation of material facts; (iii) Upon conviction of the foreigner by final judgment for a crime or offense in the Philippines; or (iv) A final determination by competent authority that the foreigner poses a risk to national security.

(b) A foreigner whose special non-immigrant status is revoked under Sections 4 (a) (i), 4 (a) (ii) or 4 (a) (iv) hereof shall be deported via summary proceedings. In the case of revocation under Section 4 (a) (iii), the foreigner shall be deported after the service of sentence.

(c) A foreigner deported by the BI Board of Commissioners under this Section shall be transported to the country whence he came, or to the foreign port where he embarked for the Philippines, or the country of his nationality of or of which he is a citizen or subject, or to the country in which he resided prior to his coming to the Philippines.

SECTION 5. Implementing Rules and Regulations and the One-Stop-SVEG Facility. – Within thirty
(30) days from the signing of this Executive Order, the Commissioner of Immigration, together with representatives from the Department of Justice (DOJ), the Department of Finance (DOF), the Department of Trade and Industry (DTI), the Department of Foreign Affairs (DFA), the Department of Labor and Employment (DOLE), the National Intelligence Coordination Agency (NICA) as well as other concerned government agencies, local or foreign chambers of commerce, and stakeholders as determined by the Commissioner of Immigration, shall promulgate the necessary Implementing Rules and Regulations (IRR) to ensure the orderly issuance of the SVEG.

Such IRR shall provide for the establishment of a One-Stop-SVEG Facility within the Bureau of Immigration with the participation of the departments and agencies abovementioned, to assist interested foreigners in the processing of documentary requirements to support their SVEG application (i.e. Alien Employment Permit from the DOLE, etc.)

The IRR shall take effect fifteen (15) days after the completion of its publication in at least two (2) newspapers of general circulation. Copies of the IRR shall be sent to the Office of the President, the Secretary of Justice, and the National Administrative Register at the U.P. Law Center.

SECTION 6. Reportorial Requirements. – The Commissioner of Immigration shall submit regular monthly reports on the implementation of this executive order to the Office of the President and the Secretary of Justice.

Certified copies of the SVEG issued by the Commissioner of Immigration pursuant to this Executive Order, including the supporting documents thereon, shall likewise be furnished to the Secretary of Justice for proper departmental recording and review.

SECTION 7. Construction. – Nothing in this Executive Order shall be construed to diminish or otherwise preclude the President as Chief Executive, and the Secretary of Justice as Department Head, from exercising their respective powers and authorities over the Bureau of Immigration, pursuant to the provisions of the Revised Administrative Code and other existing laws, executive issuances, rules, and regulations.

SECTION 8. Separability Clause. – If any provision of this Executive Order is declared invalid or unconstitutional, the provisions not affected thereby shall continue in force and effect.

SECTION 9. Repealing Clause. – The provisions of other executive issuances, departmental/administrative orders, circulars, instructions, directives and memoranda incostinent herewith are hereby repeal or modified accordingly.

SECTION 10. Effectivity. – This Executive Order shall take effect fifteen (15) days after completion of its publication in at least two (2) newspapers of general circulation.

DONE in the City of Manila, this 17th day of November in the year of Our Lord, Two Thousand and Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA

Executive Secretary

In the Philippines it is best to deal with people face to face in an agreeable environment.
For Western businessmen time is money and want to get things done fast, on the other hand Filipinos speak about friends and family, share a few jokes and chitchat a bit before getting down to business. Filipino business culture is about making friends and creating personal relations. Doing business in the Philippines is a blend of the Eastern and Western.

Use a Local Businessman to Move Fast

It is best to get an intermediary who already knows the persons you would like to meet to set your appointments and make an introduction for you. This is especially true in government offices. Mid-morning and afternoon meetings are the preference and always confirm your meeting the day before. Be flexible, on meeting times if a meeting is scheduled for 9am don’t expect everyone to be there before 9:20 or later.

Once the introductions and small talk are over, the meeting will center on the business agenda. Most probably the first meeting will not give any specific results, though if there is an interest in your business proposal a second meeting will be set. Contracts take a lot longer time to finalize than in the west.

Philippines Business Etiquette

Businessmen in the Philippines tend to avoid direct confrontation. It is extremely important that you never cause a potential Filipino business partner “loss of face. In a business conversation a “yes” can mean many things depending on its delivery. A polite yes with a smile may mean no this is a way to avoid confrontation.

When addressing someone always use their titles: Attorney, Doctor, Director, Secretary, Under Secretary, General.

It is usual to exchange business cards in the Philippines and done quite informally compared to most other Asian cultures. When a Filipino contact gives you a personal mobile or home phone number which is not on his business card, this is usually a good sign that he would like you to give him a call and wants to further the relationship.

Philippine Bureaucracy

Foreign businessmen should avoid dealing personally if possible with the local bureaucracy. Have a competent member of the staff of your Philippine registered company to navigate though the maze of permits, make sure he is adept at smiling and handing out small tokens of appreciation to ensure that your business dealings do not suffer delays.

AN ACT ESTABLISHING THE RULES TO GOVERN INTER-COUNTRY ADOPTION OF
FILIPINO CHILDREN, AND FOR OTHER PURPOSES.

ARTICLE I

GENERAL PROVISIONS

Section 1. Short Title. This Act shall be known as the “Inter-Country Adoption Act of 1995.”

Section 2. Declaration of Policy. It is hereby declared the policy of the State to provide every neglected and abandoned child with a family that will provide such child with love and care as well as opportunities for growth and development. Towards this end, efforts shall be exerted to place the child with an adoptive family in the Philippines. However, recognizing that inter-country adoption may be considered as allowing aliens not presently allowed by law to adopt Filipino children if such children cannot be adopted by qualified Filipino citizens or aliens, the State shall take measures to ensure that inter-country adoptions are allowed when the same shall prove beneficial to the child’s best interests, and shall serve and protect his/her fundamental rights.

Section 3. Definition of Terms. As used in this Act. the term:

(a) Inter-country adoption refers to the socio-legal process of adopting a Filipino child by a foreigner or a Filipino citizen permanently residing abroad where the petition is filed, the supervised trial custody is undertaken, and the decree of adoption is issued outside the Philippines.

(b) Child means a person below fifteen (15) years of age unless sooner emancipated by law.

(c) Department refers to the Department of Social Welfare and Development of the Republic of the Philippines.

(d) Secretary refers to the Secretary of the Department of Social Welfare and Development.

(e) Authorized and accredited agency refers to the State welfare agency or a licensed adoption agency in the country of the adopting parents which provide comprehensive social services and which is duly recognized by the Department.

(f) Legally-free child means a child who has been voluntarily or involuntarily committed to the Department, in accordance with the Child and Youth Welfare Code.

(g) Matching refers to the judicious pairing of the adoptive child and the applicant to promote a mutually satisfying parent-child relationship.

(h) Board refers to the Inter-country Adoption Board.

ARTICLE II

THE INTER-COUNTRY ADOPTION BOARD

Section 4. The Inter-Country Adoption Board. There is hereby created the Inter-Country Adoption Board, hereinafter referred to as the Board to act as the central authority in matters relating to inter-country adoption. It shall act as the policy-making body for purposes of carrying out the provisions of this Act, in consultation and coordination with the Department, the different child-care and placement agencies, adoptive agencies, as well as non-governmental organizations engaged in child-care and placement activities. As such, it shall:

(a) Protect the Filipino child from abuse, exploitation, trafficking and/or sale or any other practice in connection with adoption which is harmful, detrimental, or prejudicial to the child;

(b) Collect, maintain, and preserve confidential information about the child and the adoptive parents;

(c) Monitor, follow up, and facilitate completion of adoption of the child through authorized and accredited agency;

(d) Prevent improper financial or other gain in connection with an adoption and deter improper practices contrary to this Act;

(e) Promote the development of adoption services including post-legal adoption;

(f) License and accredit child-caring/placement agencies and collaborate with them in the placement of Filipino children;

(g) Accredit and authorize foreign adoption agency in the placement of Filipino children in their own country; and

(h) Cancel the license to operate and blacklist the child-caring and placement agency or adoptive agency involved from the accreditation list of the Board upon a finding of violation of any provision under this Act.

Section 5. Composition of the Board. The Board shall be composed of the Secretary of the Department as ex officio Chairman, and six (6) other members to be appointed by the President for a nonrenewable term of six (6) years: Provided, That there shall be appointed one (1) psychiatrist or psychologist, two (2) lawyers who shall have at least the qualifications of a regional trial court judge, one (1) registered social worker and two (2) representatives from non-governmental organizations engaged in child-caring and placement activities.

The members of the Board shall receive a per diem allowance of One thousand five hundred pesos (P1,500) for each meeting attended by them: Provided, further, That no compensation shall be paid for more than four (4) meetings a month.

Section 6. Powers and Functions of the Board. The Board shall have the following powers and functions:

(a) to prescribe rules and regulations as it may deem reasonably necessary to carry out the provisions of this Act, after consultation and upon favorable recommendation of the different agencies concerned with the child-caring, placement, and adoption;

(b) to set the guidelines for the convening of an Inter-country Adoption Placement Committee which shall be under the direct supervision of the Board;

(c) to set the guidelines for the manner by which selection/matching of prospective adoptive parents and adoptive child can be made;

(d) to determine a reasonable schedule of fees and charges to be exacted in connection with the application for adoption;

(e) to determine the form and contents of the application for inter-country adoption;

(g) to institute systems and procedures to prevent improper financial gain in connection with adoption and deter improper practices which are contrary to this Act;

(h) to promote the development of adoption services, including post-legal adoption services,

(i) to accredit and authorize foreign private adoption agencies which have demonstrated professionalism, competence and have consistently pursued non-profit objectives to engage in the placement of Filipino children in their own country: Provided, That such foreign private agencies are duly authorized and accredited by their own government to conduct inter-country adoption: Provided, however, That the total number of authorized and accredited foreign private adoption agencies shall not exceed one hundred (100) a year;

(j) to take appropriate measures to ensure confidentiality of the records of the child, the natural parents and the adoptive parents at all times;

(k) to prepare, review or modify, and thereafter, recommend to the Department of Foreign Affairs, Memoranda of Agreement respecting inter-country adoption consistent with the implementation of this Act and its stated goals, entered into, between and among foreign governments, international organizations and recognized international non-governmental organizations;

(l) to assist other concerned agencies and the courts in the implementation of this Act, particularly as regards coordination with foreign persons, agencies and other entities involved in the process of adoption and the physical transfer of the child; and

(m) to perform such other functions on matters relating to inter-country adoption as may be determined by the President.

ARTICLE III

PROCEDURE

Section 7. Inter-Country Adoption as the Last Resort. The Board shall ensure that all possibilities for adoption of the child under the Family Code have been exhausted and that inter-country adoption is in the best interest of the child. Towards this end, the Board shall set up the guidelines to ensure that steps will be taken to place the child in the Philippines before the child is placed for inter-country adoption: Provided, however, That the maximum number that may be allowed for foreign adoption shall not exceed six hundred (600) a year for the first five (5) years.

Section 8. Who May be Adopted. Only a legally free child may be the subject of inter-country adoption. In order that such child may be considered for placement, the following documents must be submitted to the Board:

(a)Child study;

(b)Birth certificate/foundling certificate;

(c)Deed of voluntary commitment/decree of abandonment/death certificate of parents;

(d)Medical evaluation /history;

(e)Psychological evaluation, as necessary; and

(f)Recent photo of the child.

Section 9. Who May Adopt. An alien or a Filipino citizen permanently residing abroad may file an application for inter-country adoption of a Filipino child if he/she:

(a) is at least twenty-seven (27) years of age and at least sixteen (16) years older than the child to be adopted, at the time of application unless the adopter is the parent by nature of the child to be adopted or the spouse of such parent:

(b) if married, his/her spouse must jointly file for the adoption;

(c) has the capacity to act and assume all rights and responsibilities of parental authority under his national laws, and has undergone the appropriate counseling from an accredited counselor in his/her country;

(d) has not been convicted of a crime involving moral turpitude;

(e) is eligible to adopt under his/her national law;

(f) is in a position to provide the proper care and support and to give the necessary moral values and example to all his children, including the child to be adopted;

(g) agrees to uphold the basic rights of the child as embodied under Philippine laws, the U.N. Convention on the Rights of the Child, and to abide by the rules and regulations issued to implement the provisions of this Act;

(h) comes from a country with whom the Philippines has diplomatic relations and whose government maintains a similarly authorized and accredited agency and that adoption is allowed under his/her national laws; and

(i) possesses all the qualifications and none of the disqualifications provided herein and in other applicable Philippine laws.

Section 10. Where to File Application. An application to adopt a Filipino child shall be filed either with the Philippine Regional Trial Court having jurisdiction over the child, or with the Board, through an intermediate agency, whether governmental or an authorized and accredited agency, in the country of the prospective adoptive parents, which application shall be in accordance with the requirements as set forth in the implementing rules and regulations to be promulgated by the Board.

The application shall be supported by the following documents written and officially translated in English.

(a) Birth certificate of applicant(s);

(b) Marriage contract, if married, and divorce decree, if applicable;

(c) Written consent of their biological or adoptive children above ten (10) years of age, in the form of sworn statement;

(d) Physical, medical and psychological evaluation by a duly licensed physician and psychologist;

(e) Income tax returns or any document showing the financial capability of the applicant(s);

(f) Police clearance of applicant(s);

(g) Character reference from the local church/minister, the applicant’s employer and a member of the immediate community who have known the applicant(s) for at least five (5) years; and

(h) Recent postcard-size pictures of the applicant(s) and his immediate family; The Rules of Court shall apply in case of adoption by judicial proceedings.

Section 11. Family Selection/Matching. No child shall be matched to a foreign adoptive family unless it is satisfactorily shown that the child cannot be adopted locally. The clearance, as issued by the Board, with the copy of the minutes of the meetings, shall form part of the records of the child to be adopted. When the Board is ready to transmit the Placement Authority to the authorized and accredited inter-country adoption agency and all the travel documents of the child are ready, the adoptive parents, or any one of them, shall personally fetch the child in the Philippines.

Section 12. Pre-adoptive Placement Costs. The applicant(s) shall bear the following costs incidental to the placement of the child;

(a) The cost of bringing the child from the Philippines to the residence of the applicant(s) abroad, including all travel expenses within the Philippines and abroad; and

(b) The cost of passport, visa, medical examination and psychological evaluation required, and other related expenses.

Section 13. Fees, Charges and Assessments. Fees, charges, and assessments collected by the Board in the exercise of its functions shall be used solely to process applications for inter-country adoption and to support the activities of the Board.

Section 14. Supervision of Trial Custody. The governmental agency or the authorized and accredited agency in the country of the adoptive parents which filed the application for inter-country adoption shall be responsible for the trial custody and the care of the child. It shall also provide family counseling and other related services. The trial custody shall be for a period of six (6) months from the time of placement. Only after the lapse of the period of trial custody shall a decree of adoption be issued in the said country a copy of which shall be sent to the Board to form part of the records of the child.

During the trial custody, the adopting parent(s) shall submit to the governmental agency or the authorized and accredited agency, which shall in turn transmit a copy to the Board, a progress report of the child’s adjustment. The progress report shall be taken into consideration in deciding whether or not to issue the decree of adoption.

The Department of Foreign Affairs shall set up a system by which Filipino children sent abroad for trial custody are monitored and checked as reported by the authorized and accredited inter-country adoption agency as well as the repatriation to the Philippines of a Filipino child whose adoption has not been approved.

Section 15. Executive Agreements. The Department of Foreign Affairs, upon representation of the Board, shall cause the preparation of Executive Agreements with countries of the foreign adoption agencies to ensure the legitimate concurrence of said countries in upholding the safeguards provided by this Act.

ARTICLE IV

PENALTIES

Section 16. Penalties. (a) Any person who shall knowingly participate in the conduct or carrying out of an illegal adoption, in violation of the provisions of this Act, shall be punished with a penalty of imprisonment ranging from six (6) years and one (1) day to twelve (12) years and/or a fine of not less than Fifty thousand pesos (P50,000), but not more than Two hundred thousand pesos (P200.000), at the discretion of the court. For purposes of this Act, an adoption is illegal if it is effected in any manner contrary to the provisions of this Act or established State policies, its implementing rules and regulations, executive agreements, and other laws pertaining to adoption. Illegality may be presumed from the following acts:

(1)consent for an adoption was acquired through, or attended by coercion, fraud, improper material inducement;

(2)there is no authority from the Board to effect adoption;

(3)the procedures and safeguards placed under the law for adoption were not complied with; and

(4)the child to be adopted is subjected to, or exposed to danger, abuse and exploitation.

(b) Any person who shall violate established regulations relating to the confidentiality and integrity of records, documents and communications of adoption applications, cases and processes shall suffer the penalty of imprisonment ranging from one (1) year and one (1) day to two (2) years, and/or a fine of not less than Five thousand pesos (P5,000), but not more than Ten thousand pesos (P10,000), at the discretion of the court.

A penalty lower by two (2) degrees than that prescribed for the consummated felony under this Article shall be imposed upon the principals of the attempt to commit any of the acts herein enumerated.

Acts punishable under this Article, when committed by a syndicate or where it involves two or more children shall be considered as an offense constituting child trafficking and shall merit the penalty of reclusion perpetua.

Acts punishable under this Article are deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring and/or confederating with one another in carrying out any of the unlawful acts defined under this Article.Penalties as are herein provided shall be in addition to any other penalties which may be imposed for the same acts punishable under other laws, ordinances, executive orders, and proclamations.

Section 17. Public Officers as Offenders. Any government official, employee or functionary who shall be found guilty of violating any of the provisions of this Act, or who shall conspire with private individuals shall, in addition to the above-prescribed penalties, be penalized in accordance with existing civil service laws, rules and regulations: Provided, That upon the filing of a case, either administrative or criminal, said government official, employee or functionary concerned shall automatically suffer suspension until the resolution of the case.

ARTICLE V

FINAL PROVISIONS

Section 18. Implementing Rules and Regulations. The Inter-country Adoption Board, in coordination with the Council for the Welfare of Children, the Department of Foreign Affairs, and the Department of Justice, after due consultation with agencies involved in child-care and placement, shall promulgate the necessary rules and regulations to implement the provisions of this Act within six (6) months after its effectivity.

Section 19. Appropriations. The amount of Five million pesos (P5,000,000) is hereby appropriated from the proceeds of the Lotto for the initial operations of the Board and subsequently the appropriations of the same shall be included in the General Appropriations Act for the year following its enactment.

Section 20. Separability Clause. If any provision, or part hereof is held invalid or unconstitutional, the remainder of the law or the provision not otherwise affected, shall remain valid and subsisting.

Section 21. Repealing Clause. Any law, decree, executive order, administrative order or rules and regulations contrary to, or inconsistent with the provisions of this Act are hereby repealed, modified or amended accordingly.

Section 22. Effectivity Clause. This Act shall take effect fifteen (15) days after its publication in two (2) newspapers of general circulation.

Approved: June 7, 1995

Companies that register and locate within an area that is under the Philippine Economic Zone Authority (PEZA) are entitled to various tax incentives and other advantages.

Usually enterprises located in a PEZA approved ecozone are required to export 100% of their production.

Incentives for Ecozone and IT Locators

100% foreign ownership allowed except in activities which are limited by the Foreign Investment Negative List

Income Tax Holiday (ITH) or exemption from corporate income tax for 4 years, extendable to a maximum of 8 years; after which a special 5% tax on gross income (sales less direct costs) shall be paid in lieu of all national and local taxes.  The income tax holiday is not available in the Subic Bay Metropolitan Authority (SBMA) and Clark Freeport Zone locators the special 5% tax on gross income as described above.

Exemption from duties and taxes on imported capital equipment, spare parts, supplies, raw materials. Tax credits will issued on breeding stocks or genetic materials when they are sourced locally.

PEZA may grant the right to the locator on a case to case basis the sale of up to 30% of production to the domestic market.

Exemption from wharfage dues and export taxes, imposts and fees.

Permanent resident status for foreign investors and immediate family members.

Employment of foreign nationals.

Simplified import and export procedures.

Other incentives under Executive Order 226 (Omnibus Investment Code of 1987), as may be determined by the Philippine Economic Zone Authority Board.

For companies that will not avail of PEZA incentives see the rules on foreign ownership of Philippine companies

Businesses with Foreign Investment Restrictions

Within the 1991 Foreign Investment Act (FIA) there are two negative lists also know as the “Foreign Investment Negative List” which defines the foreign investments which are limited or restricted by the constitution and specific laws. Negative List A & Negative List B

Domestic Corporations

The general rule of ownership for a Philippine Domestic Market Enterprise is 60% Filipino ownership and 40% foreign ownership of a business.**

More than 40% and up to 100% foreign ownership of a Domestic Market Enterprise is allowed as long as the paid-in capital is a minimum of USD 200,000.00. Employing a minimum of 50 direct employees or using advanced technology may allow a paid-in capital of less than USD 100,000.00 (RA 7042 as amended by RA 8179).**

Retail Trade Enterprises

Full foreign ownership is allowed for Philippine retail trade enterprises: (a) with paid-up capital of USD 2,500,000.00 or more provided that investments for establishing a store is not less than USD 830,000.00; or (b) specializing in high end or luxury products, provided that the paid-up capital per store is not less than USD 250,000.00 (Sec. 5 of RA 9762). No foreign equity is allowed in Retail Trade Enterprises with less than the above mentioned capital.

Export Businesses

An export enterprise is defined as a business who exports at least 60% of its output.
Export Business Enterprises may be 100% foreign owned and may file with the SEC for an exemption of the paid-up capital requirement of USD 200,000.00.

KPO, BPO, Back Office and call centers are considered Export Enterprises.

** Unless otherwise indicated in the Philippine Foreign Investment Negative List

LIST B: FOREIGN OWNERSHIP IS LIMITED FOR REASON OF SECURITY, DEFENSE, RISK TO HEALTH AND MORALS AND PROTECTION OF SMALL- AND MEDIUM-SCALE ENTERPRISES

Up to (to Forty Percent (40 %) Foreign Equity

1. Manufacture, repair, storage and/or distribution of products and/or ingredients requiring Philippine National Police (PNP) clearance:

a. Firearms (handguns to shotguns), parts of firearms and ammunition therefor, instruments or implements used or intended to be used in the manufacture of firearms
b. Gunpowder
c. Dynamite
d. Blasting supplies
e. Ingredients used in making explosives:

i. Chlorates of potassium and sodium
ii. Nitrates of ammonium, potassium, sodium barium, copper (11), lead (11), calcium and cuprite
iii. Nitric acid
iv. Nitrocellulose
v. Perchlorates of ammonium, potassium and sodium
vi. Dinitrocellulose
vii. Glycerol
viii. Amorphous phosphorus
ix. Hydrogen peroxide
x. Strontium nitrate powder
xi. Toluene

f. Telescopic sight, sniper scope and other similar devices

However, the manufacture or repair of these items may be authorized by the Chief of the PNP to non-Philippine nationals; Provided that a substantial percentage of output, as determined by the said agency, is exported. Provided further that the extent of foreign equity ownership allowed shall be specified in the said authority/clearance (RA 7042 as amended by RA 8179)

2. Manufacture, repair, storage and/or distribution of products requiring Department of National Defense (DND) clearance;

a. Guns and ammunition for warfare
b. Military ordnance and parts thereof (e.g., torpedoes, depth charges, bombs, grenades, missiles)
c. Gunnery, bombing and fire control systems and components
d. Guided missiles/missile systems and components
e. Tactical aircraft (fixed and rotary -winged), parts and components thereof
f. Space vehicles and component systems
g. Combat vessels (air. land and naval) and auxiliaries
h. Weapons repair and maintenance equipment
i. Military communications equipment
j. Night vision equipment
k. Stimulated coherent radiation devices, components and accessories
l. Armament training devices
m. Others as may be determined by the Secretary of the DND

However, the manufacture or repair of these items may be authorized by the Secretary of National Defense to non-Philippine nationals; Provided that a substantial percentage of output, as determined by the said agency, is exported. Provided further that the extent of foreign equity ownership allowed shall be specified in the said authority/clearance (RA 7042 as Amended by RA 8179).

3. Manufacture and distribution of dangerous drugs (RA 7042 as amended by RA 8179)
4. Sauna and steam bathhouses, massage clinics and other like activities regulated by law because of risks posed to public health and morals (RA 7042 as amended by RA 8179)
5. All forms of gambling, e.g. race track operation (RA 7042 as amended by RA, 8179)
6. Domestic market enterprises with paid-in equity capital of less than the equivalent of US$200,000 (RA 7042 as amended by RA 8179)
7. Domestic market enterprises which involve advanced technology or employ at least fifty (50) direct employees with paid-in-equity capital of less than the equivalent of US$100,000 (RA 7042 as amended by RA 8179)

LIST A: FOREIGN OWNERSHIP IS LIMITED BY MANDATE OF THE CONSTITUTION AND SPECIFIC LAWS

No Foreign Equity

1. Mass Media except recording (Art. XVI, Sec. 11 of the Constitution; Presidential Memorandum dated 04 May 1994)

2. Practice of professions *1

a. Engineering
i. Aeronautical
ii. Agricultural
iii. Chemical
iv. Civil
v. Electrical
vi. Electronics and Communication
vii. Geodetic
viii. Mechanical
ix. Metallurgical
x. Mining
xi. Naval Architecture and Marine
xii. Sanitary
b. Medicine and Allied Professions
i. Medicine
ii. Medical Technology
iii. Dentistry
iv. Midwifery
v. Nursing
vi. Nutrition and Dietetics
vii. Optometry
viii. Pharmacy
ix. Physical and Occupational Therapy
x. Radiologic and X-ray Technology
xi. Veterinary Medicine
c. Accountancy
d. Architecture
e. Criminology
f. Chemistry
g. Customs Brokerage
h. Environmental Planning
i. Forestry
j. Geology
k. Interior Design
l. Landscape Architecture
m. Law
n. Librarianship
o. Marine Deck Officers
p. Marine Engine Officers
q. Master Plumbing
r. Sugar Technology
s. Social Work
t. Teaching
u. Agriculture
v. Fisheries

(Art. XII, Sec. 14 of the Constitution; Sec. 1 of RA 5181)
3. Retail trade enterprises with paid-up capital of not less than US$ 2,500,000.00 (Sec. 5 of RA 8762) *2
4. Cooperatives (Ch. III, Art. 26 of RA 6938)
5. Private Security Agencies (Sec. 4 of RA 5487)
6. Small-scale Mining (Sec. 3 of RA 7076)
7. Utilization of Marine Resources in archipelagic waters, territorial sea, and exclusive economic zone (Art. XII, Sec. 2 of the Constitution)
8. Ownership, operation and management of cockpits (Sec. 5 of PD 449)
9. Manufacture, repair, stockpiling and/or distribution of nuclear weapons (Art. II Sec. 8 of the Constitution) *3
10. Manufacture, repair, stockpiling and/or distribution of biological, chemical and radiological weapons and anti-personal mines (Various treaties to which the Philippines is a signatory and conventions supported by the Philippines) *3
11. Manufacture of firecrackers and other pyrotechnic devices (Sec. 5 of RA 7183)

Up to Twenty Percent (20%) Foreign Equity

12. Private radio communication network (RA 3846)

Up to Twenty-Five Percent (25%) Foreign Equity

13. Private recruitment, whether for local or overseas employment (Art. 27 of PD 442)
14. Contracts for the construction and repair of locally-funded public works (Sec. 1 of CA 541, LOI 630) except:

a. infrastructure/development projects covered in RA 7718; and
b. projects which are foreign funded or assisted and required to undergo international competitive bidding(Sec. 2(a) of RA 7718)

15. Contracts for construction of defense-related structure (Sec. 1 of CA 541)

Up to Thirty Percent (30%) Foreign Equity

16. Advertising (Art. XVI, Sec. 11 of the Constitution)

Up to Forty Percent (40%) Foreign Equity

17. Exploration, development and utilization of natural resources (Art. XII, Sec. 2 of the Constitution) *4
18. Ownership of Private Lands (Art. XII, Sec. 7 of the Constitution; Ch. 5, Sec. 22 of CA 141)
19. Operation and management of public utilities (Art. XII, Sec. 11 of the Constitution; Sec. 16 of CA 146)
20. Ownership/establishment and administration of educational institutions (Art. XIV, Sec. 4 of the Constitution)
21. Culture, production, milling, processing, trading excepting retailing, of rice and corn and acquiring, by barter, purchase or otherwise, rice and corn and the by-products thereof (Sec. 5 of PD 194; Sec. 15 of RA 5762) *5
22. Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municipal corporation (Sec. 1 of RA 5183)
23. Project Proponent and facility Operator of a BOT project requiring a public utilities franchise (Art. XII, Sec. 11 of the Constitution; Sec. 2a of RA 7718)
24. Operation of deep sea commercial fishing vessels (Sec. 27 of RA 8550)
25. Adjustment Companies (Sec. 323 of PD 612 as amended by PD 1814)
26. Ownership of condominium units where the common areas in the condominium projects are co-owned by the owners of the separate units or owned by a corporation (Sec. 5 pf RA 4726)

Up to Sixty Percent (60%) Foreign Equity

27. Financing companies regulated by the Securities and Exchange Commission (Sec. 6 of RA 5980 as amended by RA 8556) 6
28. Investment housed regulated by the SEC (Sec. 5 of PD 129 as amended by RA 8366) *6

*1 This is limited to Filipino citizens save in cases prescribed by law
*2 Full foreign participation is allowed for retail trade enterprises: (a) with paid-up capital of US$2,500,000 or more provided that investments for establishing a store is not less than US$830,000; or (b) specializing in high end or luxury products, provided that the paid-up capital per store is not less than US$250,000 (Sec. 5 of RA 9762)
*3 Domestic investments are also prohibited (Art II, Sec. 8 of the Constitution; Conventions/Treaties to which the Philippines is a signatory)
*4 Full foreign participation is allowed through financial or technical assistance agreement with the President Art. XII, Sec. 2 of the Constitution)
*5 Full foreign participation is allowed provided that within the 30-year period from start of operation, the foreign investor shall divest a minimum of 60 percent of their equity to Filipino citizens (Sec. 5 of PD 194; NFA Council Resolution No. 193 s. 1998)
*6 No foreign national may be allowed to own stock in financing companies or investment houses unless the country of which he is a national accords the same reciprocal rights to Filipinos (Sec. 6 of RA 5980 as amended by RA 8556; PD 129 as amended by RA 8366)

TITLE I General Provisions  TITLE II Incorporation and Organization of Private Corporations

TITLE III Board of Directors Trustees Officers  TITLE IV Powers of Corporations  TITLE V By Laws
TITLE VI Meetings  TITLE VII Stocks and Stockholders  TITLE VIII Corporate Books and Records
TITLE IX Merger and Consolidation  TITLE X Appraisal Right  TITLE XI Non-Stock Corporations
TITLE XII Close Corporations  TITLE XIII Special Corporations  TITLE XIV Dissolution
TITLE XV Foreign Corporations  TITLE XVI Miscellaneous Provisions