Philippine laws allow foreigners to hold shares or control in the following legal entities:
Most popular option by far among the foreign investors is to set up a domestic corporation. This is mainly for the following reasons:
Domestic corporations with foreign ownership will have to comply with the following requirements:
Note that some industries are in the Negative Investment List which reduces the maximum foreign ownership for certain business classifications. Consult our consultants to understand exactly the restrictions for your industry.
Local laws require majority of the incorporators and directors to be residents of the Philippines. This is a problem for most foreign companies, especially when entering the country. Which is why Emerhub provides a nominee incorporator and director service that allows company registration in the Philippines with:
Note that this service is fundamentally different from engaging friends, family and co-workers as nominees. You will be provided local residents as a professional service and both sides rights are protected through a set of legal agreements. Also, you are able to change the shareholders and directors at any time.
There are three main ways to reduce the required minimum paid up capital of $US200,000:
The first two options reduce the required minimum capital to essentially nothing and are commonly used to register a company in the Philippines.
In case you don’t meet any of the requirements stated above but still want to reduce the paid-up capital the easiest way is to use shareholding service provided by Emerhub (see above) that formally reduces foreign shares to 40% while giving you full control over the company.
Fill out the form below to be contacted by our consultants in Philippines.
You can also send us an email at Philippines@emerhub.com.