Foreign investors often ask one question when looking at opportunities in the Philippines:
“How can I legally start a business and maximize incentives?”
The answer often lies with the Board of Investments (BOI). This government agency, under the Department of Trade and Industry (DTI), serves as a gateway for investors by granting fiscal and non-fiscal incentives to qualified enterprises. For foreigners aiming to enter the Philippine market, BOI registration can be the key to smoother operations and stronger returns.
Let’s explore how the BOI helps foreign investors establish their businesses in the Philippines.
1. Allows Up to 100% Foreign Ownership
Ordinarily, foreign ownership of businesses in the Philippines is restricted by the Foreign Investment Negative List (FINL). But BOI registration opens exceptions:
Export-oriented enterprises (exporting at least 70% of production) may be 100% foreign-owned.
Enterprises engaged in activities classified as pioneer projects may also qualify for full foreign ownership.
💡 Lawyer’s Note: This gives foreign investors legal confidence to control and expand their Philippine operations.
2. Grants Tax Incentives
BOI-registered enterprises enjoy significant fiscal benefits, including:
Income Tax Holiday (ITH): Exemption from corporate income tax for 4–6 years.
Duty-free importation: On capital equipment and raw materials not available locally.
VAT zero-rating: On certain local purchases and imports.
💡 Why this matters: These savings free up capital that foreign investors can reinvest into growth.
3. Provides Non-Fiscal Incentives
Beyond tax relief, BOI registration also comes with legal privileges that ease the business setup process:
Simplified customs and import procedures for raw materials and equipment.
Employment of foreign nationals in technical, advisory, or executive roles.
Assistance with government permits and licenses, ensuring smoother compliance.
💡 Pro Tip: This level of government support minimizes bureaucratic hurdles—a common concern for foreign entrants.
4. Offers Nationwide Location Flexibility
Unlike PEZA, which requires businesses to operate inside eco-zones, BOI-registered enterprises can locate anywhere in the Philippines.
Ideal for businesses targeting both domestic and export markets.
Provides flexibility in choosing the most strategic site for operations.
💡 Lawyer’s Insight: This flexibility is particularly beneficial for investors exploring industries like agribusiness, renewable energy, or healthcare.
5. Enhances Credibility and Investor Confidence
A BOI Certificate of Registration signals that your business is recognized and supported by the Philippine government. This strengthens:
Investor confidence in joint ventures and partnerships.
Client trust, especially in regulated industries.
Access to financing and government-backed projects.
Final Thoughts
For foreign investors, BOI registration is not just about tax breaks—it is about legal assurance, operational ease, and long-term growth in the Philippine market.
By securing BOI incentives, foreign enterprises gain a competitive edge while aligning with the country’s development priorities.
From a legal perspective, engaging with BOI early in your business planning stage ensures that you maximize available incentives and remain fully compliant with Philippine laws.
Thinking of starting a business in the Philippines? Our legal team can guide you through BOI registration—from eligibility assessment to securing your Certificate of Registration. Contact us today to explore your investment opportunities.
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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