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Frequently Asked Questions
1. What are the possible modes of entry in setting up business operations in the Philippines? 2. Where does one apply for registration of investments? 3. Can a foreign investor be allowed to invest up to 100% of its capital in a domestic enterprise? 4. What are the areas of investments covered by the Foreign Investments Act (FIA)? 5. How can my business avail of tax incentives from government? 6. What incentives are available to registered enterprises? 7. What activities do Regional Headquarters (RHQ))/Regional Operating Headquarters (ROHQ) engage in and its list of incentives? 8. What are the basic rights and guarantees given for the safety of foreign investments? 9. How does a company remit its profits and dividends and repatriate capital abroad? 10. What are the investment rights of a former natural born Filipino? 11. As an investor, what visa can be issued to me? 1. What are the possible modes of entry in setting up business operations in the Philippines?
2. Where does one apply for registration of investments?
For additional info, you may log on to www.dti.gov.ph or www.business.gov.ph. 
4. What are the areas of investments covered by the Foreign Investments Act (FIA)? The FIA covers all investment areas, except banking and other financial institutions, which are governed and regulated by the Bangko Sentral ng Pilipinas (BSP). The Foreign Investment Negative List covers areas of economic activity whose foreign ownership is limited to a maximum of forty percent (40%) of the outstanding capital stock in the case of a corporation or capital in the case of partnership. For detailed listing, you may access the FIA at www.gov.ph/laws/ra8179.pdf. 5. How can my business avail of tax incentives from government?
6. What incentives are available to registered enterprises? The compote of incentives offered is both fiscal or non-fiscal such as income tax holidays, wage-based deductions from taxable income and/or infrastructure, exemption from duties or grant of tax credits from certain importation, easement from wharf dues and export taxes, employment of foreign nationals, and other varied site-specific incentives. 7. What activities do Regional Headquarters (RHQ))/Regional Operating Headquarters (ROHQ) engage in and its list of incentives? The activities of the RHQ are limited to acting as a supervisory, communications and coordinating center for its subsidiaries affiliates and branches in the region. It is neither allowed to derive any income from sources in the Philippines and to participate in any manner in the management of any subsidiary or branch office it might have in the Philippines nor to solicit or market goods and services whether on behalf of its mother company or its branches, affiliates, subsidiaries or any other company. The law that governs this industry is Republic Act 8756. For full text of this law, you may log on to: http://www.congress.gov.ph/download/ra_11/RA08756.pdf All investors and enterprises are entitled to the basic rights and guarantees provided in the Philippine Constitution, such as the right to repatriation of investments, remittance of earnings, foreign loans and contracts, freedom from expropriation and non-requisition of investment. 9. How does a company remit its profits and dividends and repatriate capital abroad? Enterprises may remit profits and dividends or repatriate its capital abroad thru remittances with the Bangko Sentral ng Pilipinas (BSP) after registration with the SEC or BTRCP. For this purpose, BSP rules and regulations covering procedures for registration of foreign investments are observed. 10. What are the investment rights of a former natural born Filipino? The Foreign Investments Act (FIA) recognizes the rights of former natural born Filipinos. They are granted same investment rights as Filipino citizens in activities such as cooperatives, thrifts banks and private development banks, rural banks and financing companies. In addition, under Section 1 of the FIA as amended by RA 8179 provides that any natural born citizen who has lost his citizenship, and who has legal capacity to enter into a contract under Philippine laws may be a transferee of a private land to be used by him for business or other purposes up to a maximum area of five thousand (5,000) square meters in the case of urban land or three (3) hectares in the case of rural land. See the Foreign Investments Act (FIA) for details: www.gov.ph/laws/ra8179.pdf 11. As an investor, what visa can be issued to me? All investors and enterprises are entitled to the basic rights and guarantees provided in the Philippine Constitution, such as the right to repatriation of investments, remittance of earnings, foreign loans and contracts, freedom from expropriation and non-requisition of investment.
Special Investor Resident Visa (SIRV)
The SIRV entitles the holder to reside in the Philippines for an indefinite period as long as his investment continues to operate. The SIRV is issued in coordination with the BOI (www.boi.gov.ph) and the Bureau of Immigration (www.immigration.gov.ph). For more details on the allowable forms of investments, criteria for granting SIRV, log on to their respective websites. Special Resident Retiree Visa (SRRV) The SRRV is issued by the Philippine Retirement Authority (PRA). Its primary role is to promote and grant the SRRVs to would-be retirees, and to offer a range of services, benefits, and comfort that would make their stay worthwhile. For more details, you may log on to www.pra.gov.ph. Entry Visa Foreign nationals come to the Philippines for reasons of business, pleasure or health with a temporary visitor's visa. This visa allows them to stay for a period of 59 days, extendable for a maximum of one year. Visitors who may wish to extend their stay must register with the Bureau of Immigration or with the office of the municipal or city treasurer in areas outside Manila. Executive Order No. 408 allows for foreign nationals, except those of specifically restricted nationalities, to stay in the Philippines for up to 21 days without a visa. Work Permits In general, a foreign national seeking employment in the Philippines, whether resident or non-resident, needs to an Alien Employment Permit (AEP) from the Department of Labor and Employment (DOLE). For more details, you may log on to www.ble.dole.gov.ph. Treaty Traders Visa (applicable only to Japanese, Germans and Americans) This visa is issued to abovementioned nationalities based on certain criteria. For more information, you may log on to www.immigration.gov.ph |
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