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.
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