A common misconception among international founders is that the Board of Investments (BOI) is reserved exclusively for joint ventures or majority Filipino-owned corporations.
The Rule: Yes, 100% Foreign Ownership is Fully Allowed
Foreign investors can own 100% of the equity in a BOI-registered domestic corporation, provided they satisfy at least one of the following criteria under Philippine investment laws:
Export Commitment: The enterprise exports at least 70% of its total output.
Pioneer Status Project: The business introduces new technologies, processes, or goods not yet produced in the Philippines at a commercial scale.
SIPP Priority Sectors: The activity falls under Tier 2 or Tier 3 of the Strategic Investment Priority Plan (e.g., green technology, semiconductor manufacturing, health sciences, major infrastructure).
Capital Requirements for Domestic Market Enterprises
If a 100% foreign-owned enterprise intends to sell to the domestic Philippine market (less than 70% export), it must satisfy statutory paid-up capital requirements—typically USD $200,000, which can be reduced to USD $100,000 if the company employs at least 50 direct Filipino workers or utilizes advanced technology.
Key Takeaway: Foreign ownership is welcome under the BOI. Aligning your business plan with SIPP priority activities unlocks full equity ownership alongside multi-year tax holidays.
Navigating the business landscape in the Philippines can be both rewarding and intricate. Whether you’re embarking on a new venture or scaling up, ensuring that your corporate endeavors are in line with local regulations is paramount.
At CBOS Business Solutions Inc., we pride ourselves on simplifying these processes for our clients. As a seasoned professional services company, we offer comprehensive assistance with SEC Registration, Visa processing, and a myriad of other essential business requirements. Our team of experts is dedicated to ensuring that your business is compliant, well-established, and ready to thrive in the Philippine market.
Why venture into the complexities of business registration and compliance alone? Allow our team to guide you every step of the way. After all, your success is our commitment.
Get in touch today and let us be your partner in achieving your business goals in the Philippines.
Email Address: gerald.bernardo@cbos.com.ph
Mobile No.: +639270032851
You can also click this link to schedule a meeting.
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