Category Archives: Investment Limits

Philippine Foreign Investment Limits: Negative List A

Limited by constitutional and legal mandates.

Zero Percent (0%) Foreign Equity

  1. Mass media, except recording
  2. Practice of professions
  3. Retail trade enterprises with paid-up capital of not less than USD 2,500,000.00
  4. Cooperatives
  5. Private security agencies
  6. Small-scale mining
  7. Utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic zone
  8. Ownership, operation and management of cockpits
  9. Manufacture, repair, stockpiling and/or distribution of nuclear weapons
  10. Manufacture, repair, stockpiling and/or distribution of biological, chemical and radiological weapons and anti-personal mines
  11. Manufacture of firecrackers and other pyrotechnic devices

Up to Twenty Percent (20%) Foreign Equity

  1. Private radio communication network

Up to Twenty-Five Percent (25%) Foreign Equity

  1. Private recruitment, whether for local or overseas employment
  2. Contracts for the construction and repair of locally-funded public works, except: (a) infrastructure/development projects covered in RA 7718; and 
(b) projects which are foreign funded or assisted and required to undergo international competitive bidding (Sec. 2(a) of RA 7718)
  3. Contracts for construction of defense-related structure

Up to Thirty Percent (30%) Foreign Equity

  1. Advertising

Up to Forty Percent (40%) Foreign Equity

  1. Exploration, development and utilization of natural resources
  2. Ownership of private lands
  3. Operation and management of public utilities
  4. Ownership/establishment and administration of educational institutions
  5. Culture, production, milling, processing, trading excepting retailing, of rice and corn and acquiring, by barter, purchase or otherwise, rice and corn and the by-products thereof
  6. Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municipal corporation
  7. Project proponent and facility operator of a BOT project requiring a public utilities franchise
  8. Operation of deep-sea commercial fishing vessels
  9. Adjustment companies
  10. Ownership of condominium units where the common areas in the condominium projects are co-owned by the owners of the separate units or owned by a corporation

Up to Sixty Percent (60%) Foreign Equity

  1. Financing companies regulated by the Securities and Exchange Commission (SEC)
  2. Investment houses regulated by the SEC

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Philippine Foreign Investment Limits: Negative List B

Limited for reason of security, defense, risk to health and morals, and protection of small- and medium-scale enterprises.

Up to Forty Percent (40%) Foreign Equity

  1. Manufacture, repair, storage and/or distribution of products and/or ingredients requiring Philippine National Police (PNP) clearance:
  • Firearms (handguns to shotguns), parts of firearms and ammunition therefore, instruments or implements used or intended to be used in the manufacture of firearms
  • Gunpowder
  • Dynamite
  • Blasting supplies
  • Ingredients used in making explosives
  • Telescopic sight, sniper scope and other similar devices
  1. Manufacture, repair, storage and/or distribution of products requiring Department of National Defense (DND) clearance:
  • Guns and ammunition for warfare
  • Military ordnance and parts thereof (e.g., torpedoes, depth charges, bombs, grenades, missiles)
  • Gunnery, bombing, and fire control systems and components
  • Guided missiles/missile systems and components
  • Tactical aircraft (fixed- and rotary- winged), parts, and components thereof
  • Space vehicles and component systems
  • Combat vessels (air, land, and naval) and auxiliaries
  • Weapons repair and maintenance equipment
  • Military communications equipment
  • Night vision equipment
  • Stimulated coherent radiation devices, components and accessories
  • Armament training devices
  • Others as may be determined by the Secretary of the DND
  1. Manufacture and distribution of dangerous drugs
  2. Sauna and steam bathhouses, massage clinics, and other like activities regulated by law because of risks posed to public health and morals
  3. All forms of gambling, e.g. race track operation
  4. Domestic market enterprises with paid-in equity capital of less than the equivalent of USD200,000
  5. Domestic market enterprises, which involve advanced technology or employ at least fifty (50) direct employees with paid-in-equity capital of less than the equivalent of USD100,000

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