Philippines Country Profile business trade issues

Philippines

DOING BUSINESS

Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

To obtain further information on the various aids or incentives, companies have to submit their project to the Board of Investments (BOI) which will determine the activity of the company and the possible nature of the aids they can benefit from (tax exemption, credit, customs procedures made easier, etc.)

Legal forms of companies

Form	Number of partners/shareholders	Minimum and/or maximum capital	Liability	Registration fee	Release of financial documents
The Corporation is a joint-stock company.	Minimum 5 shareholders, maximum 15. 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 .	Annual accounts are published for quoted companies and for companies with more than 20 shareholders.
Close Corporation is a close 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.	Annual accounts are published for companies quoted on the stock exchange and companies with more than 20 shareholders.
Sole Partnership is a single-member company	Only 1 person	No minimum capital.	Liability is unlimited.	About PHP 110.	Accounts are audited, but not necessarily published.
General Partnership	Minimum 2 partners	No minimum capital.	Liability is unlimited.	About PHP 110.	Accounts are audited, but not necessarily published.
Limited Partnership	Minimum 2 partners	No minimum capital.	Liability is limited to the amount contributed.	About PHP 110.	Accounts are audited, but not necessarily published.

Registration and licensing 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).

Foreign exchange control
There is no currency exchange control in Philippines. Foreign investments must be registered with the CB (Central Bank) in order to repatriate capital and dividends.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in the Philippines.

Foreign Direct Investment inflows in Philippines

FDI inflows	2003	2004	2005	World rank (*) 2005
FDI inflows (USD million)	491	688	1132	115/141

Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

Last modified in 2006 - ongoing update