Philippine Foreign Investment Negative List

LIST A: FOREIGN OWNERSHIP IS LIMITED BY MANDATE OF THE CONSTITUTION AND SPECIFIC LAWS

No Foreign Equity

  • Mass Media except recording
  • Practice of professions
    • Engineering
      • Aeronautical
      • Agricultural
      • Chemical
      • Civil
      • Electrical
      • Electronics and Communication
      • Geodetic
      • Mechanical
      • Metallurgical
      • Mining
      • Naval Architecture and Marine
      • Sanitary
    • Medicine and Allied Professions
      • Medicine
      • Medical Technology
      • Dentistry
      • Midwifery
      • Nursing
      • Nutrition and Dietetics
      • Optometry
      • Pharmacy
      • Physical and Occupational Therapy
      • Radiologic and X-ray Technology
      • Veterinary Medicine
    • Accountancy
    • Architecture
    • Criminology
    • Chemistry
    • Customs Brokerage
    • Environmental Planning
    • Forestry
    • Geology
    • Interior Design
    • Landscape Architecture
    • Law
    • Librarianship
    • Marine Deck Officers
    • Marine Engine Officers
    • Master Plumbing
    • Sugar Technology
    • Social Work
    • Teaching
    • Agriculture
    • Fisheries
    • Guidance  counseling
    • Real estate service
    • Respiratory therapy
    • Psychology
  • Retail trade enterprises with paid-up capital of less than US$ 2,500,00
  • Cooperatives
  • Private Security Agencies
  • Small-scale Mining
  • Utilization of Marine Resources in archipelagic waters, territorial sea, and exclusive economic zone as well as small-scale utilizaton of natural resources in rivers, lakes, bays, and lagoons
  • Ownership, operation, and management of cockpits
  • Manufacture, repair, stockpiling, and/or distribution of nuclear weapons
  • Manufacture, repair, stockpiling, and/or distribution of biological, chemical and radiological weapons, and anti-personal mines (various treaties to which the Philippines is a signatory and conventions supported by the Philippines)
  • Manufacture of firecrackers and other pyrotechnic devices

Up to Twenty Percent (20%) Foreign Equity

  • Private radio communication network

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

  • Private recruitment, whether for local or overseas employment
  • Contracts for the construction and repair of locally-funded public works except:
    • Infrastructure/development projects covered in RA 7718; and
    • Projects which are foreign-funded or assisted and required to undergo international competitive bidding of contracts for construction of defense-related structure.

Up to Thirty Percent (30%) Foreign Equity

  • Advertising

Up to Forty Percent (40%) Foreign Equity

  • Exploration, development, and utilization of natural resources
  • Ownership of Private Lands
  • Operation and management of public utilities
  • Ownership/establishment and administration of educational institutions
  • 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
  • Contracts for the supply of materials, goods, and commodities to government-owned or controlled corporation, company, agency, or municipal corporation
  • Project Proponent and facility operator of a BOT project requiring a public utilities franchise
  • Operation of deep sea commercial fishing vessels
  • Adjustment Companies
  • 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 Forty-Nine Percent (49%) Foreign Equity

  • Lending companies

Up to Sixty Percent (60%) Foreign Equity

  • Financing companies regulated by the Securities and Exchange Commission
  • Investment houses regulated by the SEC
  1. This is limited to Filipino citizens save in cases prescribed by law
  2. Full foreign participation is allowed for retail trade enterprises: (a) with paid-up capital of US$2,500,000 or more provided that investments for establishing a store is not less than US$830,000; or (b) specializing in high-end or luxury products, provided that the paid-up capital per store is not less than US$250,000
  3. Domestic investments are also prohibited (Conventions/Treaties to which the Philippines is a signatory)
  4. Full foreign participation is allowed through financial or technical assistance agreement with the President (Art. XII, Sec. 2 of the Constitution)
  5. Full foreign participation is allowed provided that within the 30-year period from start of operation, the foreign investor shall divest a minimum of 60 percent of their equity to Filipino citizens
  6. No foreign national may be allowed to own stock in financing companies or investment houses unless the country of which he is a national accords the same reciprocal rights to Filipinos

LIST B: FOREIGN OWNERSHIP IS LIMITED FOR REASONS OF SECURITY, DEFENSE, RISK TO HEALTH, AND MORALS AND PROTECTION OF SMALL AND MEDIUM-SCALE ENTERPRISES

Up to Forty Percent (40%) Foreign Equity

  • 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:
      • Chlorates of potassium and sodium
      • Nitrates of ammonium, potassium, sodium barium, copper (11), lead (11), calcium, and cuprite
      • Nitric acid
      • Nitrocellulose
      • Perchlorates of ammonium, potassium, and sodium
      • Dinitrocellulose
      • Glycerol
      • Amorphous phosphorus
      • Hydrogen peroxide
      • Strontium nitrate powder
      • Toluene
  • Telescopic sight, sniper scope, and other similar devices
However, the manufacture or repair of these items may be authorized by the Chief of the PNP to non-Philippine nationals; provided that a substantial percentage of output, as determined by the said agency, is exported. Provided further that the extent of foreign equity ownership allowed shall be specified in the said authority/clearance.
  • 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
However, the manufacture or repair of these items may be authorized by the Secretary of National Defence to non-Philippine nationals; provided that a substantial percentage of output, as determined by the said agency, is exported. Provided further that the extent of foreign equity ownership allowed shall be specified in the said authority/clearance.
  • Manufacture and distribution of dangerous drugs
  • Sauna and steam bathhouses, massage clinics, and other like activities regulated by law because of risks posed to public health and morals
  • All forms of gambling, except those covered by investment agreements with PAGCOR or the PAGCOR Charter
  • Domestic market enterprises with paid-in equity capital of less than the equivalent of US$200,000
  • 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 US$100,000