WHO CAN INVEST?
Regardless of nationality, anyone is encouraged to invest in the Philippines. With the liberalization of the foreign investment law, 100% foreign equity may be allowed in all areas of investment except those reserved for Filipinos by mandate of the Philippine Constitution and existing laws.
Aside from tourism, the economy of the Philippines is primarily composed of other industries such as agriculture industry, BPO, energy, mining, electronics, logistics, and shipbuilding, among others.
The country boasts a labor force that is trainable, skilled, technology savvy, English proficient, and highly competitive.
There are about 10 international and 80 domestic airports in the country and more are being developed. There are Roll-On Roll-Off Ferry ports in major islands, allowing land travel from Luzon to Mindanao. Car rentals and taxis are widely available for convenience. Rail transits are available in Metro Manila.
Use of mobile phones and internet is widespread in the country. Cell sites are available all over the country to cater to some 80 million mobile phone users. Wireless fidelity connectivity is available in major shopping malls and coffee shops. Internet cafes with very affordable rentals are also abundant.
Creating a Company in the Philippines
An investor may choose from several types of business enterprises to establish operations in the Philippines such as:
Organized under Philippine laws:
- Sole Proprietorship
Organized under foreign laws:
- Branch office
- Representative Office
- Regional headquarters/regional operating headquarters
Business enterprises must be registered with the Philippine Securities and Exchange Commission (http://www.sec.gov.ph) or the Department of Trade and Industry (http://www.dti.gov.ph).
The PPP projects are entitled to fiscal incentives under the Investments Priorities Plan (IPP). Other preferred activities in the IPP list includes: agriculture/agribusiness and fishery; creative industries/knowledge-based services; shipbuilding; mass housing; energy; infrastructure; research and development; green projects; motor vehicles; tourism; strategic projects; and disaster prevention, mitigation, and recovery projects.
The IPP has a mandatory list which covers activities as provided for under existing laws:
- Revised Forestry Code of the Philippines (P.D. N. 705)
- Philippine Mining Act of 1995 (RA No. 7942)
- Printing, Publication, and Content Development of Books or Textbooks (RA No. 8047)
- Downstream Oil Industry Deregulation Act of 1998 (RA No. 8479)
- Ecological Solid Waste Management (RA No. 9003)
- Philippine Clean Water Act of 2004 (RA No. 9275)
- Magna Carta for Disabled Persons (RA No. 7277)
- Renewable Energy Act of 2008 (RA No. 9513)
- Why invest in the Philippines?
- Guide on Investment Laws in the Philippines
- Cost of Doing Business in the Philippines
- Steps in Securing Business Permits
(These presentations were sourced from the Department of Trade and Industry’s Board of Investments)