Before a foreign corporation can engage in business in the Philippines, it must first secure the necessary licenses or registration certificates from the appropriate government agencies. Generally, the registration process starts with the Securities and Exchange Commission (SEC).If the proposed project or activity qualifies for incentives, the foreign investor may file its application with the continue reading : What requirements must be complied with before a foreign corporation can engage in business in the Philippines?
With the liberalization of the foreign investments law, 100% foreign equity may be allowed in all areas of investment except financial institutions and those included in the Ninth Regular Foreign Investment Negative List which took effect on 29 October 2012. This list includes:List A: Areas reserved to Filipinos by mandate of the Constitution and special continue reading : Is a foreign investor allowed to own 100% of a business entity?
The government encourages foreign investments which will provide significant employment opportunities relative to the amount of the capital being invested, improve productivity of resources, increase volume and value of exports, and provide a foundation for the future development of the economy. Investment-related rules have been liberalized to facilitate entry of foreign investments. This thrust is continue reading : What is the general policy of the government regarding foreign investments? Is this policy likely to change in the near future?
A. BOI Incentives An enterprise registered with the BOI pursuant to the 1987 Omnibus Investments Code (Executive Order or EO 226) is entitled to, among others, the following incentives subject to certain terms and conditions: Fiscal Incentives i. Income tax holiday (ITH) for six years for pioneer firms and generally four years for non-pioneer firms. continue reading : What are the major incentives available to a registered enterprise?
In general, investment incentives are not transferable. However, investment incentives are attached to the registered project and subject to certain qualifications, may be carried over from one owner to the next, at the discretion of the incentives giving body. Tax credit certificates may be transferred subject to certain conditions.