Applying for Board of Investments (BOI) registration in the Philippines can open doors to powerful tax incentives, government support, and long-term growth opportunities. However, the process is technical and highly regulated. Even the smallest misstep can delay approval—or worse, result in denial of your application.
As lawyers assisting businesses through this process, we often encounter recurring errors that could have been avoided with proper guidance. Below, we break down the common mistakes applicants make—and how to avoid them.
1. Misunderstanding Eligibility Requirements
Not every business automatically qualifies for BOI incentives. Applicants must ensure that their activity falls under the Strategic Investment Priority Plan (SIPP) or meets conditions for export-oriented projects.
⚖️ Lawyer’s Insight: Many applicants assume their industry is eligible without consulting the SIPP. Always confirm your business activity’s qualification before filing.
2. Submitting Incomplete or Incorrect Documents
BOI is strict when it comes to documentary compliance. Missing requirements—such as Articles of Incorporation, audited financial statements, or project feasibility studies—can result in delays.
⚖️ Tip: Double-check the checklist provided by BOI. Legal counsel can help prepare, review, and organize documents to ensure accuracy and completeness.
3. Overlooking the Foreign Investment Negative List (FINL)
Foreign investors sometimes overlook restrictions under the FINL, which limits foreign ownership in certain industries. BOI can allow 100% foreign ownership in specific cases, but not all businesses qualify.
⚖️ Reminder: Always align your ownership structure with FINL provisions—or restructure it legally—before applying.
4. Weak or Unrealistic Project Study
BOI requires applicants to submit a comprehensive project study detailing the scope, financial projections, and economic contributions of the business. Submitting a poorly prepared or overly optimistic study undermines your credibility.
⚖️ Legal Note: Treat the project study as your “business defense.” It must demonstrate viability, compliance with Philippine laws, and alignment with BOI’s development goals.
5. Missing Deadlines and Reporting Obligations
Even after approval, BOI-registered companies must comply with post-registration obligations such as annual reports, project implementation deadlines, and periodic inspections. Failure to comply may lead to cancellation of incentives.
⚖️ Advice: Mark reporting deadlines on your compliance calendar, and designate a responsible officer or legal advisor to monitor obligations.
6. Assuming BOI Registration Equals PEZA Benefits
Some investors confuse BOI with Philippine Economic Zone Authority (PEZA) registration. Unlike PEZA, BOI does not require businesses to operate inside ecozones, but its incentives and rules differ.
⚖️ Clarification: Choosing between BOI and PEZA should be a strategic decision based on your business model, market, and location.
7. DIY Applications Without Legal Guidance
While it’s possible to apply on your own, BOI applications involve complex regulations, investment laws, and incentive rules. Many delays or denials happen simply because applicants did not seek professional help.
⚖️ Final Thought: Engaging a lawyer or compliance expert ensures you meet requirements, protect your legal interests, and maximize available incentives.
Final Thoughts
BOI registration offers powerful opportunities—but only if done right. Avoiding these common mistakes saves your business time, money, and the frustration of rejection. With careful preparation and legal guidance, you can secure incentives that accelerate your success in the Philippine market.
Planning to apply for BOI registration? Let our legal team help you navigate the process, avoid costly mistakes, and secure the incentives your business deserves. Contact us today for expert assistance.
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
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