Sadsad Tamesis Legal & Accountacy Firm
Philippines
A strategic archipelagic country with extensive access to natural resources—from land, marine, and mineral resources—the Philippines is at the heart of the Southeast Asia region, providing access to 600 million people in the ASEAN market and a gateway of international shipping and air lanes for eastern and western industries, making it highly receptive to the foreign market.
Boasting a workforce that is tech-savvy, English-proficient, and highly competitive, topped with a business-friendly economy, large consumer market, and reasonable cost of doing business, the Philippines is a strong choice for foreign entities looking to explore growth opportunities in Asia.
Doing Business in Philippines
- One of the fastest-growing e-commerce markets worldwide and the fastest in Southeast Asia with a 24.10% growth yearly, largely contributed by 73 million active online users
- Located strategically within a four-hour flight from major Asian capitals
- Simplified registration processes for entities engaged in key industries
- Tax on investment earnings is equalized; 10% final tax on dividends and 15% on profits from selling shares not publicly traded, whether the corporation domestic or foreign
- Foreign investors can hold 100% equity in most sectors, except those listed under the FINL
- Significant reduction of minimum capital requirements for stock corporations
- PPP projects are entitled to fiscal incentives under the Investments Priorities Plan (IPP)
- Accessible reliefs and incentives, potentially reducing tax dues if a tax treaty exists between the Philippines and the parent company’s home country
Our Practice Areas
Discover our comprehensive legal services designed to meet your local and cross-border needs.
Frequently Asked Questions (FAQs)
1. Can foreigners start a business in the Philippines?
Yes. Foreigners may establish businesses in the Philippines, subject to foreign ownership restrictions under the 1987 Philippine Constitution and the Foreign Investments Act of 1991. Some industries allow 100% foreign ownership, while others require Filipino majority ownership.
2. What is the 60–40 foreign ownership rule?
The 60–40 rule means that certain industries must be at least 60% owned by Filipino citizens and only up to 40% owned by foreign investors. This applies to businesses in restricted or partially nationalized sectors.
3. Are foreigners allowed to own 100% of a company in the Philippines?
Yes, foreigners may fully own companies in industries not listed in the Foreign Investment Negative List, subject to minimum capital requirements and registration with the Securities and Exchange Commission (SEC).
4. Can foreigners own land in the Philippines?
Foreigners are generally not allowed to own land, but they may lease land for long-term use under the Investors' Lease Act or own condominium units within legal limits.
5. What business structures are available for foreign investors?
Foreign investors may establish: domestic corporations, branch offices, representative offices, and regional headquarters. Registration is done through the SEC.
6. Do foreigners need a visa to run a business in the Philippines?
Yes. Foreign investors and business operators typically need appropriate visas issued by the Bureau of Immigration, such as work or investor visas.
7. Can companies hire foreign employees?
Yes, but employers must secure permits from the Department of Labor and Employment (DOLE) and Bureau of Immigration. Foreign employees must obtain work visas and employment permits.
8. What is an Alien Employment Permit?
An Alien Employment Permit allows foreign nationals to work legally in the Philippines and is issued by the Department of Labor and Employment.
9. How long does it take to register a foreign-owned business?
Business registration timelines vary depending on structure and permits but typically range from several weeks to a few months.
10. Why should foreign investors hire corporate and immigration lawyers?
Corporate and immigration lawyers ensure compliance with ownership laws, proper business registration, visa and permit processing, protection from legal risks. This helps foreign investors operate legally and efficiently in the Philippines.
11. What government agencies regulate foreign businesses in the Philippines?
Key agencies include the Securities and Exchange Commission (SEC), the Bureau of Immigration (BI), the Department of Labor and Employment (DOLE), and the Bureau of Internal Revenue (BIR).
12. Can your firm assist with end-to-end business setup in the Philippines?
Yes. Corporate services typically include company registration, immigration and visa processing, compliance and licensing, and legal advisory for foreign investors.
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