Problems relating to Trade and Investment on The Philippines
1. Restrictions on entry of foreign capitals |
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Issue |
Issue details |
Requests |
Reference |
| (1) The Philippines Residents/ Indigenous People Requirement for Establishment of a Legal Entity | - Due to the following requirements for an incorporator, director, corporate secretary, a member firm (MF) of JBCTIF without reliable local contacts faces much difficulty in selecting proper persons: -- The majority of founders, directors, must be the Philippines residents, -- The corporate secretary must be a native Filipino, residing in the Philippines. |
- It is requested that GOP deregulates the requirements for being: -- residents in the Philippines concerning founders and directors, and -- both a Filipino and residing in the Philippines concerning Corporate Secretary. |
- Corporation Code of the Philippines -- Founder, Section 10, -- Director, Section 23, -- Corporate Secretary, Section 25 |
| (Action) - Corporate code of the Philippines provides: "Any number of natural persons not less than five (5) but not more than fifteen (15), all of legal age and a majority of whom are residents of the Philippines, may form a private corporation for any lawful purpose or purposes". |
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| (2) Equity Ratio Requirement on FFEs Acquisition of Land Ownership Right and Right of Water | - The local capital contribution requirement of 60% or more for landownership /right of water could block new foreign investment into the Philippines. | - It is requested that GOP takes steps to either deregulate or amend the requirements described in the left column. | - 9th Regular Foreign Investment Negative List |
| (Action) - With capital contribution of maximum 40%, foreign corporation may establish real estate corporation and lease the land property to its local manufacturing subsidiary. |
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