DOING BUSINESS

IN THE PHILIPPPINES

INVESTMENT LAWS
Business One-Stop Shop (BOSS) Action Center
BOSSAC

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

R.A. No. 7042
FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"

Doing Business
WITHOUT INCENTIVES

Foreign
Investments
Act (FIA)
WITHOUT
Incentives
and NOT in
the Negative
List

Doing Business
WITH INCENTIVES

Economic
Zones and
Freeports
WITH
Incentives

Omnibus
Investments
Act (EO226)
(Administered
by BOI)
WITH
Incentives

Representative/
Branch Office

E.O226-BK IIIR. A. 8756Regional

Headquarters
(RHQ)
/Regional
Operating
Headquarters
(ROHQ)

R. A. No. 8762
Retail Trade
Law

E.O226-BK
V-Special
Investors
Resident
Visa

E.O. No.
1037Special
Resident
Retirees
Visa

E.O. No. 758Special Visa

for
Employment
Generation

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"

Doing Business
WITHOUT INCENTIVES

Foreign
Investments
Act (FIA)
WITHOUT
Incentives
and NOT in
the Negative
List

Doing Business
WITH INCENTIVES

Economic
Zones and
Freeports
WITH
Incentives

Omnibus
Investments
Act (EO226)
(Administered
by BOI)
WITH
Incentives

Representative/
Branch Office

Regional
Headquarters
(RHQ)
/Regional
Operating
Headquarters
(ROHQ)

Retail Trade
Law

Special
Investors
Resident
Visa

Special
Resident
Retirees
Visa

Special Visa
for
Employment
Generation

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"
Doing Business WITHOUT Incentives

Foreign Investments Act

Doing Business WITHOUT Incentives
and NOT in the Negative List

60 Filipino/40
Foreign:
- Paid-in capital can
be less than US$
200T

More than 40% Foreign

A.

Domestic Market Oriented at least US$200T

paid-in capital or US$100T if:
1. Activity involves advance technology or,
2. Company employs at least 50 direct employees
B. Export Oriented
A manufacturer that exports at least 60% of its output;
or a trader that purchases products domestically and
export at least 60% of its purchases.
- US$ 200T paid-in, not applicable

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"

Doing Business
WITHOUT INCENTIVES

Foreign
Investments
Act (FIA)
WITHOUT
Incentives
and NOT in
the Negative
List

Doing Business
WITH INCENTIVES

Economic
Zones and
Freeports
WITH
Incentives

Omnibus
Investments
Act (EO226)
(Administered
by BOI)
WITH
Incentives

Representative/
Branch Office

Regional
Headquarters
(RHQ)
/Regional
Operating
Headquarters
(ROHQ)

Retail Trade
Law

Special
Investor
Resident
Visa

Special
Resident
Retirees
Visa

Special Visa
for
Employment
Generation

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

Doing Business WITH Incentives

Economic Zone and Freeports

PEZA - RA 7916
CDC - RA 7227
SBMA -RA 7227
CEZA - RA 7922
PHIVIDEC - PD 538
Location - in Economic Zone and Freeports
- 100% for export regardless of ownership
and status
- Needs zone authority to sell 30% to 50% in
the domestic market but subject to payment
of taxes and duties

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

Doing Business WITH Incentives

EO 226 - Registration with BOI

Export Oriented

For Domestic Market

Whether Pioneer or Non Pioneer Status

- Activity is listed in the IPP

If 60% Filipino/40% Foreign

If Pioneer Status

50% for Export.

- can be 100% owned by foreigners

If more than 40% Foreign owned

If Non-Pioneer Status

70% for Export

-foreign equity is up to 40% only

"See IPP"

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"

Doing Business
WITHOUT INCENTIVES

Foreign
Investments
Act (FIA)
WITHOUT
Incentives
and NOT in
the Negative
List

Doing Business
WITH INCENTIVES

Economic
Zones and
Freeports
WITH
Incentives

Omnibus
Investments
Act (EO226)
(Administered
by BOI)
WITH
Incentives

Representative/
Branch Office

Regional
Headquarters
(RHQ)
/Regional
Operating
Headquarters
(ROHQ)

Retail Trade
Law

Special
Investors
Resident
Visa

Special
Resident
Retirees
Visa

Special Visa
for
Employment
Generation

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

REPRESENTATIVE
OFFICE

BRANCH
OFFICE

- Needs SEC Registration as a REPRESENTATIVE OFFICE

- Needs SEC Registration as a BRANCH

- Extension of the personality of its mother company

- Carries out business activities of parent company

- Activities limited only to liaison work between mother

company and its clients

- Assigned capital from Head Office at least US$200T

can be reduced to US$100T if :

- Does not derive income

1. Activity involves advanced technology or

- One time remittance from mother company in the amount

of at least US$ 30T to be used for its operational expenses

2. Company employs at least 50 direct employees

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"

Doing Business
WITHOUT INCENTIVES

Foreign
Investments
Act (FIA)
WITHOUT
Incentives
and NOT in
the Negative
List

Doing Business
WITH INCENTIVES

Economic
Zones and
Freeports
WITH
Incentives

Omnibus
Investments
Act (EO226)
(Administered
by BOI)
WITH
Incentives

Representative/
Branch Office

Regional
Headquarters
(RHQ)
/Regional
Operating
Headquarters
(ROHQ)

Retail Trade
Law

Special
Investors
Resident
Visa

Special
Resident
Retirees
Visa

Special Visa
for
Employment
Generation

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

Regional Headquarters (RHQ) /
Regional Operating Headquarters (ROHQ)

RHQ

- Endorsed by
- Needs SEC Reg.

BOI to SEC

- Annual remittance of at least US$ 50T

CONDITIONS:
a.Functions
-supervisory
-communication
-coordination

ROHQ

- Endorsed by
- Needs SEC Reg.

BOI to SEC

- One time remittance of at least US$ 200T

CONDITIONS:
a. Functions
- RHQ functions
- Perform qualifying services to its affiliates,
subsidiaries, and branches

b.Does not earn income in the Philippines

b.Earn income from qualifying services

subject to 10% tax

- With Incentives

- With Incentives

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"

Doing Business
WITHOUT INCENTIVES

Foreign
Investments
Act (FIA)
WITHOUT
Incentives
and NOT in
the Negative
List

Doing Business
WITH INCENTIVES

Economic
Zones and
Freeports
WITH
Incentives

Omnibus
Investments
Act (EO226)
(Administered
by BOI)
WITH
Incentives

Representative/
Branch Office

Regional
Headquarters
(RHQ)
/Regional
Operating
Headquarters
(ROHQ)

Retail Trade
Law

Special
Investors
Resident
Visa

Special
Resident
Retirees
Visa

Special Visa
for
Employment
Generation

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

Retail Trade Law

PREQUALIFICATION REQUIREMENTS:
Before a foreign retailer is allowed to establish or organize an entity that will engage in the retail business or
invest in a retail store in the Philippines, it must possess all of the following qualifications :
a)

A minimum of US$200 million net worth of the registrant corporation for Categories B, and US50 million net
worth of the registrant corporation for Category D;

b) Five (5) retailing branches or franchise anywhere around the world unless such retailer has at least one (1)
store capitalized at a minimum of US$25 million;
c) Five (5) - year track record in retailing; and
d) Nationals from, or juridical entities formed or incorporated in countries which allow the entry of Filipino
retailers shall be allowed to engage in retail trade in the Philippines.

BOI
- For Category B, Paid up capital should be at least US2.5 million for general merchandize store and each
branch should not be less than US$830,000
- For Category D, high end or luxury product, the paid up capital should not be less than US$250,000 per store
- Pre-qualified
- Needs SEC Reg.

by BOI & endorsed to SEC

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"

Doing Business
WITHOUT INCENTIVES

Foreign
Investments
Act (FIA)
WITHOUT
Incentives
and NOT in
the Negative
List

Doing Business
WITH INCENTIVES

Economic
Zones and
Freeports
WITH
Incentives

Omnibus
Investments
Act (EO226)
(Administered
by BOI)
WITH
Incentives

Representative/
Branch Office

Regional
Headquarters
(RHQ)
/Regional
Operating
Headquarters
(ROHQ)

Retail Trade
Law

Special
Investors
Resident
Visa

Special
Resident
Retirees
Visa

Special Visa
for
Employment
Generation

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

Special Investors Resident Visa (SIRV)
PREQUALIFICATION REQUIREMENTS:
- He has not been convicted of a crime involving moral turpitude.
- He is not afflicted with any loathsome, dangerous or contagious disease
- He has not been institutionalized for any mental disorder or disability

BOI
- Applicant is at least 21 years old
- Amount of investments is at least US$75,000. (This was lowered to US$50,000, for Tourism Related Projects under
E.O. 63 and shall be filed with Dept. of Tourism)

- Only investments/shares of stocks in existing, new or proposed corporation shall be allowed/accepted as

eligible forms of investments:
- Publicly-listed companies
- Co. engaged in areas listed in the Investments Priorities Plan (IPP) of the BOI
- Co. engaged in the manufacturing and services sectors

- Approved by BOI
- Issuance of Visa endorsed to Bureau of Immigration

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"

Doing Business
WITHOUT INCENTIVES

Foreign
Investments
Act (FIA)
WITHOUT
Incentives
and NOT in
the Negative
List

Doing Business
WITH INCENTIVES

Economic
Zones and
Freeports
WITH
Incentives

Omnibus
Investments
Act (EO226)
(Administered
by BOI)
WITH
Incentives

Representative/
Branch Office

Regional
Headquarters
(RHQ)
/Regional
Operating
Headquarters
(ROHQ)

Retail Trade
Law

Special
Investors
Resident
Visa

Special
Resident
Retirees
Visa

Special Visa
for
Employment
Generation

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

Special Resident Retirees Visa (SRRV)
Philippine Retirement Authority (PRA)
REQUIREMENTS
Age and Visa
Deposit

SRRV SMILE
1. 35 yrs. Old & above
- US$20,000
NOTE: Additional Visa
deposit - US$15,000.00 per
dependent in excess of two
(2).

Application Fees
Monetary
Obligations

SRRV CLASSIC
1.
2.

35 to 49 yrs. Old - US$50,000

50 yrs. Old & above :
Without Pension - US$20,000
With Pension - US$10,000

NOTE: Additional Visa deposit S$15,000.00 per dependent in excess of two

(2).
Show proof of monthly pension remitted to
the Philippines (US$800.00 for single
applicant and US$1,000.00 for married
couples)*

1. US$1,400.00 for the Principal ;

SRRV HUMAN TOUCH

1. 35 yrs. Old & above US$10,000
NOTE:
Retiree must:
Be shown to have a pre-existing
condition (except contagious
diseases) and in need of medical
care and services.Show proof of
monthly pension remitted to the
Philippines equal to at least
US$1,500.00.

2.. US$300.00 for each Spouse/Dependent

1. US$360.00 Annual PRA Fee (APF) for Principal, Spouse,

and (1) Child upon enrollment and every year thereafter.
2. US$100.00 for each dependent in excess of two (2)

1. US$360.00 Annual PRA

Fee (APF) upon enrollment
and every year thereafter.

SRRV COURTESY
1. 35 yrs. Old for Former
Filipino citizens - US$1,500
2. 50 yrs. Old & above for
Ambassadors/Retired Diplomats
who served in the Phils. US$1,500
NOTE: Additional Visa deposit US$15,000.00 per dependent in excess
of two (2) except for Former Filipinos.

NOTE: One-time payment only.

1. US$10.00 Annual PRA Fee
(APF).

NOTE: To cover one (1)

dependent only.
Convertibility of
Deposit

LOCKED-IN in the
bank

MAY BE CONVERTIBLE

LOCKED-IN in the bank

MAY BE CONVERTIBLE

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

FOREIGN
INVESTMENTS ACT
NEGATIVE LIST
"Annex A"

Doing Business
WITHOUT INCENTIVES

Foreign
Investments
Act (FIA)
WITHOUT
Incentives
and NOT in
the Negative
List

Doing Business
WITH INCENTIVES

Economic
Zones and
Freeports
WITH
Incentives

Omnibus
Investments
Act (EO226)
(Administered
by BOI)
WITH
Incentives

Representative/
Branch Office

Regional
Headquarters
(RHQ)
/Regional
Operating
Headquarters
(ROHQ)

Retail Trade
Law

Special
Investors
Resident
Visa

Special
Resident
Retirees
Visa

Special Visa
for
Employment
Generation

PHILIPPINE LAWS ON FOREIGN INVESTMENTS

Special Visa for Employment Generation (SVEG)
BUREAU OF IMMIGRATION (BI)

a. The foreigner shall actually, directly or exclusively engage in a viable and sustainable commercial
investment/enterprise in the Philippines, exercises/performs management acts or has the authority to hire,
promote and dismiss employees;

b. He evinces a genuine intention to indefinitely remain in the Philippines;

c. He is not a risk to national security;
d. The foreigners commercial investment/enterprise must provide actual employment to at least ten (10)
Filipinos in accordance with Philippine labor laws and other applicable special laws.
- The privileges under SVEG may extend to the qualified foreigners spouse and dependent unmarried
child/children below eighteen (18) years of age whether legitimate, illegitimate or adopted.
Processing Time. Substantive Proof Needed. Control Number for Each Application. Preventing Intercalations.
Non-Application of Technical Rules of Evidence and Procedure. The Commissioner of Immigration shall, upon
payment of an application fee, together with payment of legal research fee, BI clearance and Express lane fee,
receive and resolve completely-accomplished SVEG applications.

- Approved by Bureau of Immigration (BI) (www.immigration.gov.ph)

- Issuance of Special Visa for Employment Generation

THANK YOU

SVEG (continuation)
Section 2. To Whom Issued (A) Subject to restrictions imposed by the Constitution and existing laws on control, nationality
and/or ownership of working capital, a SVEG shall be issued to a foreigner or foreigners with interests in an entity, firm,
partnership or corporation that establishes, expands or rehabilitates a business activity, investment, enterprise or industry for
every ten (10) full-time/regular Filipino workers who are actually employed by such entity, firm, partnership or corporation on a
long-term basis in the Philippines.
(B) Foreigners exercising managerial functions in an entity, firm, partnership or corporation, that has the power to hire, dismiss
and promote employees provided that they are nominated and their applications for SVEG are endorsed by such entity, firm,
partnership or corporation subject to the employment requirement in paragraph (A) hereof.
Section 3. Viable and Sustainable Commercial Investment/Enterprise Viable and sustainable commercial investment, enterprise
or industry shall mean any business activity, investment, enterprise or industry in the Philippines that a SVEG under these
rules shall be issued to any foreigner or group of foreigners in any business activity, investment, enterprise or industry in
accordance with the laws, rules and regulations of the Philippines that:

(a) Engages in the manufacturing, processing, assembly, production, packaging, supply, delivery and/or trading of goods,
products and/or commodities, either for mass consumption or for export including foreign investors in special economic
zones owned and/or administered by the Philippine Economic Zone Authority (PEZA);
(b) Requires or utilizes, on a wide-market proportion, service-intensive support in information technology, systems research
and development, education, knowledge and business process out-sourcing, production/services/innovation off-shoring and
call and/or transaction processing;

(c) Provides, on a marketable and profitable degree, service-oriented support in modern, alternative, indigenous, physical,
therapeutic, recuperative and health-care facilities; or
(d) Provides training for long-term and full-time/regular employment of Filipino workers in a business activity, investment,
enterprise or industry covered by Section 2 of these Rules.

SVEG (continuation)
Section 4. Nature of Employment of Filipino Workers. Under these Rules, the employment of at least ten (10) long-term and full-time/regular Filipino
workers shall be for managerial, executive, professional, technical, skilled or unskilled positions in a business activity, investment, enterprise or industry in
the Philippines.
Section 5. Definition of Managerial Position. - A position is managerial if these characteristics concur:
(a) The worker manages the organization or a department of the organization;
(b) The worker supervises and controls the work of other supervisory, professional or managerial employees, or manages an essential function of the
organization;
(c) The worker has the authority to hire and/or fire those persons supervised, of if none are supervised, works at a senior level within the organization; and
(d) The worker has the authority to make decisions concerning the day-to-day operations of the portion of the organization over which he or she has
authority.
Section 6. Definition of Executive Position. - A position is executive if these characteristics concur:
(a) The worker directs the management of the organization or a major part of the organization;
(b) The worker sets the goals and policies of the organization or a part of the organization;
(c) The worker has extensive decision-making authority; and
(d) The worker receives only general supervision or direction from higher level executives, a board of directors, or the stockholders of the organization.
Section 7. Definitions of Professional, Technical, Skilled and Unskilled. The term professionals shall refer to employment requiring formalized,
extensive training or education in creative and intellectually challenging work that includes, but are not necessarily limited to, researchers, computer data
and systems technicians/designers/programmers/analysts, physical/occupational therapists, nurses, medico-health specialists, medical technologists,
radiologists and electronic/graphic/digital media specialists.
The term technical shall refer to employment that requires highly-specialized scientific, agro-industrial, chemical, mechanical, electric, electronic and
similar expertise.
The term skilled shall refer to employment that requires at least two years training or experience.
The term unskilled shall refer to employment that requires less than two years training or experience. However, this term excludes housekeepers and
household workers, including domestics, nannies, cooks, guards, caretakers and the like.
Section 12. Processing Time. Substantive Proof Needed. Control Number for Each Application. Preventing Intercalations. Non-Application of Technical
Rules of Evidence and Procedure. The Commissioner of Immigration shall, upon payment of an application fee of P2,000.00, together with payment of
legal research fee, BI clearance and Express lane fee, receive and resolve completely-accomplished SVEG applications within fifteen (15) working days
from the date of filing.