Businesses that Foreigners can Operate

The restrictions on foreigners operating business in the Philippines are mostly prescribed in a document called Foreign Investment Negative List. The list is further divided into List A and List B. Accompanying the list are various legislation and executive orders, such as Republican Act No. 8179 enacted in March 1996, and Executive Order 139 issued in 2002.

In essence, under the latest Negative List (5th), foreigners are not allowed to invest in the media, professional services (medical, engineering and so on), retail trade with paid-in capital of less than US$2.5 million, manufacturing of weapons and pyrotechnic devices. They may own up to 25% of companies that undertake publicly funded construction contract works. Foreigners may own up to 40% of businesses involved in mining or public utilities, and also businesses that supply the national police and the military, gambling operations or domestic enterprises with paid-in capital of less than US$200,000 (i.e. if the paid-in capital is above this amount, 100% foreign ownership is allowed provided the business is not in List B).

Foreigners may own upto 60% of financing companies or investment houses, provided they meet certain requirements.