Starting a Business · Philippines
Starting a Business - Philippines
The Philippines permits up to 100% foreign ownership in any activity not restricted by the Foreign Investment Negative List (13th FINL, EO 113, effective 2 May 2026), and recent liberalization opened telecoms, airlines, domestic shipping and railways to full foreign equity. However, foreign-owned domestic-market enterprises generally face a USD 200,000 minimum paid-in capital requirement, key sectors remain capped at 40% or fully closed, and incorporation still requires sequential registration with the SEC, BIR and local government units. Company formation itself is now largely online (SEC eSPARC/OneSEC) and can be fast, but the capital and ownership rules make it more demanding than fully open jurisdictions.
Under RA 7042's negative-list principle, any activity not listed in the FINL is open to 100% foreign equity. The 13th FINL (EO 113), signed 13 April 2026 and effective 2 May 2026, governs the current restrictions.
List A reserves sectors like mass media, practice of professions, cooperatives, private security and small-scale mining to Filipinos. A 40% foreign cap applies to public utilities, land ownership, natural-resource exploitation and small retail; advertising is capped at 30%.
The 13th FINL formally codifies telecommunications, airlines, domestic shipping and railways (under RA 11659) as open to 100% foreign ownership, and renewable energy (solar, wind, tidal/ocean) up to 100% foreign equity.
A foreign-owned domestic-market enterprise (more than 40% foreign equity) generally needs USD 200,000 minimum paid-in capital; this falls to USD 100,000 if it employs at least 50 direct Filipino employees or uses advanced technology. Export-oriented enterprises (≥60% exports) are exempt.
Incorporation is sequential: register the corporation with the SEC (online via eSPARC), then secure local government business permits, then register with the Bureau of Internal Revenue (BIR), plus social agencies (SSS, PhilHealth, Pag-IBIG) for employers.
Via the SEC's OneSEC fast-track, a Certificate of Incorporation can issue in as little as 24 hours for fully digital all-Filipino applications; regular/foreign-equity applications needing manual review typically take about 5–7 working days at SEC, with further time for BIR and LGU permits.
Machine-assisted translation · verified 5/23/2026 · orientation, not legal advice. English version →