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Foreign companies that want to do business in the Philippines are required to obtain a license from the Securities and Exchange Commission (SEC). You must choose from the following corporate entities.
A branch office in the Philippines is an extension of a foreign corporation’s head office. It’s governed by the laws of the origin country and allowed to engage in income-generating activities in the Philippines. A branch office must appoint a resident agent who can legally represent the company.
A representative office cannot engage in revenue-generating activities in the Philippines. Given that restriction, a representative office is limited to activities like marketing, quality control, and facilitating product/service orders.
An RHQ is another business entity that cannot engage in income-generating activities. Permitted activities for RHQs include, but are not limited to, employee training, product research/development, and administrative tasks.
An ROHQ is an income-generating entity that is authorized to expand its parent company’s business activities in the Philippines. It’s often established by foreign corporations that have a presence in several countries.
A foreign corporation can have an investment stake in a domestic corporation in the Philippines. The mix of foreign equity can be 60% Filipino and 40% foreign, or 40–100% foreign, subject to certain restrictions depending on the industry.
Value-Add Services for Foreign Corporations in the Philippines
Securing SEC registration is just one of many requirements foreign corporations must comply with. Several permits and additional documentation will also be needed.
To get your company in the Philippines running smoothly, Loft also offers the following services.
Foreign Taxpayer TIN Application
Apply for a Taxpayer Identification Number with the Bureau of Internal Revenue.
Alien Employment Permit
Get support when applying for an Alien Employment Permit from the Department of Labor and Employment (DOLE).
Working Visa (9g visa, 47a2)
Get support when applying for a working visa issued by the Bureau of Immigration.
Visa Application for Dependents
Sort out the visa application for your dependents without worries.
Authority to Employ
Secure your Authority to Employ from the Department of Justice without the hassle.
Tourist Visa Extension
Tourist visa in the Philippines expiring soon? Apply for an extension and get approved fast.
Provisional Working Permit
Start work immediately even while your work visa application is pending.
Importer Accreditation from the Bureau of Customs
Get certification to legally import goods into the Philippines.
Why Register Your Foreign Corporation With Loft?
With over 2,000 clients and counting, Loft has assisted foreign companies and investors exploring the best business opportunities in the Philippines.
Regulatory expertise in hand
With decades of experience in setting up a company in the Philippines, our team can help you choose the right corporate entity aligned with your goals.
Worry-Free, Professional Service
You can sit back while we take care of the requirements to legally establish your business presence in the Philippines.
Strategic Location for Business Growth
We have offices in key business districts in the Philippines: Makati, Ortigas, BGC, Quezon City, and Cebu City.
Frequently Asked Questions (FAQs) on Registering a Foreign Corporation in the Philippines
Most foreign corporations in the country are either non-resident foreign corporations or resident foreign corporations.
A non-resident foreign corporation is a business entity that doesn’t have a physical location in the Philippines. It can gain income through various means, such as investments in domestic stocks, lease of local property, and interest from lending funds.
A resident foreign corporation, on the other hand, has a brick-and-mortar location in the Philippines. It can be further classified as a branch office, representative office, regional headquarters, regional operating headquarters. This type of foreign corporation can also establish a legal presence in the country by registering as a domestic corporation, which is governed by Philippine laws and regulations.
Foreign ownership can be as high as 100%, provided that:
- The domestic corporation’s business activities are not included in the Foreign Investments Negative List (FINL); and
- The paid-up capital is at least US$ 200,000 for a domestic market enterprise or ₱5,000 for an export-oriented enterprise.
There are several business sectors where up to 100% foreign equity is allowed, such as, but not limited to: export, manufacturing, business process outsourcing, IT services, lending and investment, and wellness.
Consult our team to find out if your business venture is feasible in the Philippines.
Call us at (63) 917 899 1111 or send us an email.
Foreign ownership is prohibited in the following industries due to restrictions set by the Philippine Constitution:
- Firearms, ammunitions, explosives (manufacturing, stockpiling, and repair)
- Small-scale mining
- Mass media (except recording or internet-based businesss
- Organization of cooperatives
- Practice of professions (law, medicine, engineering)
- Retail trade (paid-up capital of less than $US 2.5 million)
- Firecracker and pyrotechnic manufacturing
- Ownership, operation and management of cockpits
- Use of marine resources in archipelagic waters, territorial sea, and exclusive economic zone
- Small-scale utilization of natural resources in rivers, lakes, bays, and lagoons
There are also business sectors that are limited up to 40% foreign equity due to health and moral concerns, and for the protection of small-medium enterprises. These include:
- Private radio communications networks
- Steam bath houses, saunas, massage clinics
- All forms of gambling
- Private radio communications network
- Ownership of condominium units
- Operation of public services like power generation
- Deep-sea commercial fishing
- Exploration and development of natural resources
This list is not exhaustive. The FINL is updated every few years. Learn more from our team. (63) 917 899 1111
or send us an email.
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If you have other questions that are not answered in the FAQs above, please feel free to get in
touch with us via email at [email protected], via call +63-917-899-1111 or using our website’s contact form.