It is important to know whether your business model which you are venturing in with a foreign national is allowable in The Philippines. The Negative list below shall guide you through the types of industries that may or may not allow be allowed with a foreign shareholder.
The 11th version added sectors where up to 100% foreign participation will be allowed:
It also increased participation of up to 40% on two sectors:
However, the new Negative List removed the following sectors from the list (where up to 40% foreign equity was previously allowed):
Subject to the Annex on Professions indicating professions where foreigners are allowed to practice in the Philippines subject to reciprocity and where corporate practice is allowed; and
Foreigners may teach at higher education levels if subject being taught is not a professional subject (included in a government board or bar examination).
Infrastructure/development projects covered in Republic Act (RA) No. 7718; and
Projects which are foreign-funded or assisted and required to undergo international competitive bidding.
Manufacture, repair, storage, and/or distribution of products and/or ingredients requiring Philippine National Police (PNP) clearance
Chlorates of potassium and sodium;
Nitrates of ammonium, potassium, sodium barium, copper (11), lead (11), calcium, and cuprite;
Perchlorates of ammonium, potassium, and sodium;
Strontium nitrate powder;
However, the manufacture or repair of these items may be authorized by the Chief of the PNP to non-Philippine nationals; provided that a substantial percentage of output, as determined by the said agency, is exported. Provided further that the extent of foreign equity ownership allowed shall be specified in the said authority/clearance (RA No. 7042 as amended by RA No. 8179).
Updated: November 8, 2019
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