Domestic corporations encompass several types of businesses in the Philippines. The nationality of the stockholders within the corporation is an essential caveat in determining the industries in which the businesses can exist.

1. 100% Filipino Owned — This type of corporation is owned entirely by Filipino stockholders. 100% Filipino-owned businesses are free to participate in any economic sector in the country to varying extents. 

2. Domestic Corporation with 40% Foreign Equity

3. Domestic Corporation with 40.01% Foreign Equity 

As detailed by the recent Philippine Foreign Investments Negative List, specific industries have limitations on foreign individuals’ participation. Sectors including but not limited to the ones listed below are off-limits to international equity:

• Mass media, except recording and internet business
• The practice of professions, including radiologic and x-ray technology, law, criminology, and marine deck officers and marine engine officers
• Retail trade enterprises with paid-up capital of less than US$2.5 million
• Cooperatives
• Organization and operation of private detective, watchmen, or security guards agencies
• Small-scale mining
• Utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic zone as well as small-scale utilization of natural resources in rivers, lakes, bays, and lagoons
• Ownership, operation, and management of cockpits
• Manufacture, repair, stockpiling, and/or distribution of nuclear weapons
• Manufacture, repair, stockpiling, and/or distribution of biological, chemical, and radiological weapons and anti-personnel mines
• Manufacture of firecrackers and other pyrotechnic devices

View or download the 11th Regular Foreign Investment Negative List.

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