Προφίλ συναλλασσόμενης χώρας Φιλιππίνες

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Maximum and/or minimum capital	Liabilities	Registration fees
The Corporation is a joint-stock company.	Minimum 5 shareholders, maximum 15. A Majority of shareholders have to be Philippine residents. No maximum after the constitution.	No minimum. 25% must be subscribed. 25% must be released at the incorporation.	Liability is limited to the amount contributed.	0.1% of the capital amount, with a minimum of PHP 200 and a maximum of PHP 100 000, that is to say USD 3,850 .
A Closed Corporation is a closed joint-stock company	Maximum 20	No minimum. 25% must be subscribed. 25% must be released at the constitution.	Liability is limited to the amount contributed.	0.1% of the capital amount, with a minimum of PHP 200 and a maximum of PHP 100 000, that is to say USD 3,850 .
Sole Partnership is a single-member company	Only 1 person	No minimum capital.	Liability is unlimited.	About PHP 110.
General Partnership	Minimum 2 partners	No minimum capital.	Liability is unlimited.	About PHP 110.
Limited Partnership	Minimum 2 partners	No minimum capital.	Liability is limited to the amount contributed.	About PHP 110.

Business setup procedures: The procedure of registration of a company with foreign participation varies according to its legal form. A single-member company should be registered at the BTRCP (Bureau of Trade Regulation and Consumer Protection) linked with the DTI (Department of Trade and Industry). A Public Limited Company or a Limited Liability Company should be registered at the SEC (Securities and Exchanges Commission).
The competent organization: Bureau of Trade Regulation and Consumer Protection (BTRCP), Securities and Exchange Commission (SEC).

FDI in figures

Foreign Direct Investment	2007	2008	2009
FDI of inward flow (millions USD)	2916	1544	1948
FDI inward stock (millions USD)	20463	21611	23559
Performance Index*, ranking on 141 economies	112/141	122/141	110/141
Potential Index**, ranking on 141 economies	77/141	80/141	-
Number of Greenfield investments***	97	140	120
FDI inwards (in % of GFCF****)	13.7556320116613	6.27554320654815	11.6284946588997
FDI stock (in % of GDP)	14.20347156605	12.9278293164157	14.6281832750634

πηγή:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.*** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest the Philippines

Strong points: The country's main strong points are:
- A skilled English-speaking workforce;
- A large domestic market;
- Its membership to ASEAN;
- A favorable investment policy;
- A very advanced legal system;
- A strategic location at the Asian gateway; and
- Considerable natural wealth.
Weak points: The country's weak points lie in its political instability, the bad quality of its infrastructures, judicial precariousness and lack of transparency.
Government measures to motivate or restrict FDI: Laws liberalizing business practices have opened up more fields to foreign investments and have provided foreign investors with the same incentives as ASEAN members, as well as simplified procedures.
Bilateral investment conventions signed by the Philippines: The Philippines have signed bilateral investment agreements with many countries, listed here.

Procedures relative to foreign investment

Freedom of establishment: Not guaranteed.
Acquisition of holdings: A majority holding interest in the capital of a local company is legal in the Philippines.
Obligation to declare: The agency for the promotion of foreign investment in the country provides information about the authorizations required for setting up business.
Competent organization for the declaration: Philippine Board of Investment
Requests for specific authorizations: The sectors open to foreign investment after an authorization has been obtained are listed in Annexe B of the Foreign Investment Act, available here.

Finding assistance for further information

Investment aid agency: Board of Investment
Other useful resources: Philippine Chamber of Commerce and Industry