|
||||
 |
||||
U.S. Ambassador Kenney Lauds “Creativity and Innovation” of Women. 08/08/2007 U.S. Ambassador Kenney lauds "Creativity and Innovation" of Women, Urges Greater Leadership Opportunities During Visit to ... more »  Learn more about investment opportunities. Sign-up now!  RBOI-ARMM ARMM Complex, Cotabato City 9600 Philippines Telephone Numbers: Fax Number: |
Frequently Asked QuestionsFor your convenience, we have compiled a list of our visitor's most frequently asked questions. You may browse through the list to find an answer.
GENERAL QUESTIONS
GENERAL QUESTIONS
What are the various types of business structure options can I choose from in setting up a business?
You may set up your business under a variety of organizational structures known as single proprietorship, partnership, corporation, branch office, representative office, regional headquarters and regional operating headquarters.
How do these business structures differ from one another?
Single/Sole Proprietorship is a business structure owned by an individual who has full control/authority of his own and owns all the assets, personally owes and answers all liabilities or suffers all losses and enjoys all the profits to the exclusion of others. Must apply for a Business Name with the Department of Trade and Industry. Partnership is treated as a juridical person having a separate legal personality from that of its members. It may either be general or limited, depending on the liability of the partners. It consists of two (2) or more partners. A partnership must register with the Securities Exchange Commission (SEC) with a minimum capitalization of three thousand pesos (Php 3,000.00). Corporation is a juridical person established under the Corporation Code and is regulated by the SEC with a personality separate and distinct from that of its stockholders. It consists of at least five (5) to fifteen (15) incorporators each of whom must hold at least one share. It must be registered with the Securities Exchange Commission (SEC). The minimum paid-up capital is five thousand pesos (Php 5,000.00). Branch Office is an extension of a foreign enterprise and has no separate and independent legal personality. It can carry out the business activities of its head office and may derive income from the Philippines. It is required to inwardly remit US$200,000.00 to the Philippines as its assigned capital. Representative Office is one which deals directly with the clients of its parent company in the Philippines, but may not derive income from the Philippines. It undertakes activities such as information dissemination, communication center, promotion of the company's products, as well as quality control. It is required to have an initial remittance of at least US$30,000.00 working capital into the Philippines.
Can a foreign investor be allowed to own 100% of a business entity?
Yes, one hundred percent (100%) foreign equity may be allowed in all areas of investments under the Foreign Investments Act (FIA) except financial institutions and those included in the Regular Foreign Investment Negative List (FINL). What are the areas of investments covered by Foreign Investments Act (FIA)? Foreign Investment Negative List - means a list of 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. Below are Negative Lists A & B where: List A: refers to areas reserved to Filipinos by mandate of the Constitution and Special Laws such as but not limited to:
List B: refers to areas that are defense-related, those with adverse effects on public health and morals and domestic market enterprises with paid-up capital of less than US$200,000, provided they involved advanced technology as determined by the Department of Science and Technology (DOST) or directly employ at least fifty (50) employees, in which case, the paid-up capital shall be lowered to US$100,000 only to non-Philippine nationals.
When can foreigners do business or invest in a domestic enterprise up to 100% of its capital?
Where does one apply for registration of investments?
For Single/Sole Proprietorship - Submit an application, together with the required documents, to the Bureau of Trade Regulation and Consumer Protection (DTI-BTRCP), an office under the Department of Trade & Industry. Where to file application:
2. Any of the DTI Provincial offices if outside Metro Manila. For Corporations/Partnerships, Branch and Representative Offices - Submit application forms together with required documents at the Securities and Exchange Commission (SEC). Where to file application:
2. SEC Extension Offices if outside Metro Manila For Regional Headquarters and Regional Operating Headquarters - Submit application form together with required documents at the Board of Investments. Where to file application:
What requirements must be complied with before an enterprise can enjoy tax benefits?
For a proposed activity of a domestically incorporated enterprise to qualify for incentives, the firm may file its application with the appropriate investment promotion agencies depending on the project's location, as follows:
I'd like to know more about Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA) Registrations?
To qualify for registration with the BOI, an enterprise may register its activity with the BOI if the proposed activity is listed in the current Investments Priorities Plan (IPP). If not listed, the enterprise may also be entitled to BOI incentives if the following conditions are met:
Foreign-owned firms, whose ownership exceeds 40% of the outstanding capital stock and which proposes to engage in domestic-oriented activities, may be entitled to incentives if the proposed activity is listed in the current IPP and qualifies as Pioneer. Philippine Economic Zone Authority (PEZA) The Special Economic Zone Act of 1995 as amended, mandates the PEZA to operate, administer, manage and develop Special Economic Zones or Ecozones. Enterprises that may qualify for registration with PEZA are those that will manufacture and export 100% of their production. Permission has to be sought if the enterprise located within the zone will export below 100% and in most cases PEZA has allowed 30% of production in the domestic market. There are 98 operating proclaimed Special Economic Zones in the country.
What is classified Pioneer?
A preferred area of investments may be declared pioneer if the activity:
What incentives are available to registered enterprises?
An enterprise registered with the Board of Investments (BOI) pursuant to the 1987 Omnibus Investments Code (Executive Order No. 226) is entitled to, among others, the following incentives subject to certain terms and conditions: Fiscal Incentives a. Income Tax Holiday (ITH)
Non-fiscal Incentives Certain non-fiscal incentives are also available to the registered enterprise, among which are: employment of foreign nationals; guaranteed repatriation of foreign investments and earnings thereon; and importation of consigned equipment for an unlimited period subject to the posting of re-export bond. Philippine Economic Zone Authority (PEZA) Investment Incentives for Ecozone Developers / Operators
What are the activities that an RHQ/ROHQ can engage in?
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. Regional Headquarters (RHQ) Incentives
Regional Operating Headquarters (ROHQ)
Regional Operating Headquarters (ROHQ) Incentives
ROHQ is allowed to offer qualifying services only to its affiliates, branches or subsidiaries as declared in its registration with the Securities and Exchange Commission (SEC). It is not allowed to directly and indirectly solicit or market goods and services whether on behalf of their mother company, branches, affiliates, subsidiaries or any other company.
What are the incentives given to expats working for RHQ/ROHQ?
Incentives given to expats working for RHQ/ROHQ are the following:
How does a company remit its profits and dividends and repatriate capital abroad?
Enterprises seeking to remit its profits and dividends or repatriate its capital abroad may register their inward remittance 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.
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, “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.”
What are the basic rights and guarantees given for the safety of foreign investments?
All investors and enterprises are entitled to the basic rights and guarantees provided in the Philippine Constitution, such as: Right to REPATRIATION OF INVESTMENTS In the case of foreign investments, the right to repatriate the entire proceeds of the liquidation of the investment in the currency in which the investment was originally made at the exchange rate prevailing at the time of repatriation. Right to REMITTANCE OF EARNINGS In the case of foreign investments, the right to remit earnings from the investments in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance. Right to FOREIGN LOANS AND CONTRACTS The right to remit, at the exchange rate prevailing at the time of remittance, such as may be necessary to meet the payment of interest and the principal on foreign loans and foreign obligations arising from technological assistance contracts. Right to FREEDOM FROM EXPROPRIATION There shall be no expropriation by the government of the property represented by the investments or of the property of enterprises except for public use or in the interest of national welfare and defense and upon payment of just compensation. In such cases, foreign investors of enterprises shall have the right to remit sums received as compensation for the expropriated property in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance. Right to NON-REQUISITION OF INVESTMENT There shall be no requisition of the property presented by the investment or of the property of enterprises, except in the event of war or national emergency and only for the duration of such. Just compensation for the requisitioned property may be remitted in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance.
As an investor, what visa can be issued to me?
The Special Investor Resident Visa (SIRV) entitles the holder to reside in the Philippines for an indefinite period as long as his investment subsists. Any alien, except restricted nationals under the Foreign Service Code, may apply for an SIRV provided he meets the following requirements:
ALLOWABLE FORMS OF INVESTMENT - For purposes of securing an SIRV, only ownership of shares of stocks in the following shall be accepted as eligible forms of investment, to wit:
The government has liberalized visa requirements for foreign entrants to encourage foreign participation in the economic development of the Philippines. Among the liberalized rules are the following provisions:
Entry Visa Foreign nationals may come to the Philippines for reasons of business, pleasure or health with a temporary visitor’s visa. This visa allows stays for periods of 59 days, extendable for a maximum of one year. To extend their stay, visitors 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 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, must secure an Alien Employment Permit (AEP) from the Department of Labor and Employment (DOLE). An AEP is valid for one year from the date of issue and may be renewed subject to the approval of the DOLE. Executives of area or regional headquarters and OBUs, as well as treaty trader visa holders, are exempt from the requirement to obtain alien employment certificates. A local employer who wishes to employ a foreign national must apply on the foreign national’s behalf with the DOLE for the permit. The petitioning company must prove that the foreign national possesses the required skills for the position and that no Filipino is available who is competent, able and willing to do the specific job for which the foreign national is desired. To ensure a proper transfer of technology, the DOLE requires the employers of foreign nationals to provide an Understudy Training Programme (UTP) and to designate at least two Filipino understudies. The functions of these employers must be deemed permanent, and they must require skills or expertise that are scarce in the Philippines.
|
|||
Send to a Friend
Printer Friendly Version
