Philippines Regular Foreign Investment Negative List A

8th Regular Foreign Investment Negative List A

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

No Foreign Equity

1. Mass Media except recording (Art. XVI, Sec.11 of the Constitution; Presidential Memorandum dated 04 May 1994)

2. Practice of all professions *1 (Art. XII, Sec.14 of the Constitution, Sec. 1 of RA 5181)

a) Engineering
i. Aeronautical engineering (PD 1570)
ii. Agricultural engineering (RA 8559)
iii. Chemical engineering (RA 9297)
iv. Civil engineering (RA 1582)
v. Electrical engineering (RA 7920)
vi. Electronics and Communication engineering (RA 9292)
vii. Geodetic engineering (RA 8560)
viii. Mechanical engineering (RA 8495)
ix. Metallurgical engineering (PD 1536)
x. Mining engineering (RA 4274)
xi. Naval Architecture and Marine engineering (RA 4565)
xii. Sanitary engineering (RA 1364)
b) Medicine and Allied Professions
i. Medicine (RA 2382 as amended by RA 4224)
ii. Medical Technology (RA 5527 as amended by RA 6318, PD 6138, PD 498 and PD 1534)
iii. Dentistry (RA 9484)
iv. Midwifery (RA 7392)
v. Nursing (RA 9173)
vi. Nutrition and Dietetics (PD 1286)
vii. Optometry (RA 8050)
viii. Pharmacy (RA 5921)
ix. Physical and Occupational Therapy (RA 5680)
x. Radiologic and X-ray Technology (RA 7431)
xi. Veterinary Medicine (RA 9268)
c) Accountancy (RA 9298)
d) Architecture (RA 9266)
e) Criminology (RA 6506)
f) Chemistry (RA 754)
g) Customs Brokerage (RA 9280)
h) Environmental Planning (PD 1308)
i) Forestry (RA 6239)
j) Geology (RA 4209)
k) Interior Design (RA 8534)
l) Landscape Architecture (RA 9053)
m) Law (Art. VIII, Sec. 5 of the Constitution; Rule 138, Sec. 2 of the Rules of Court of the Philippines)
n) Librarianship (RA 9246)
o) Marine Deck Officers (RA 8544)
p) Marine Engine Officers (RA 8544)
q) Master Plumbing (RA 1378)
r) Sugar Technology (RA 5197)
s) Social Work (RA 4373)
t) Teaching (RA 7836)
u) Agriculture (RA 8435)
v) Fisheries (RA 8550)
w) Guidance counseling (RA 9258)

3. Retail trade enterprises with paid-up capital of less than US$2,500,000 (Sec. 5 of RA 8762) *2
4. Cooperatives (Ch. III, Art. 26 of RA 6938)
5. Private Security Agencies (Sec. 4 of RA 5487)
6. Small-scale Mining (Sec. 3 of RA 7076)
7. Utilization of Marine Resources in archipelagic waters, territorial sea, and exclusive economic zone as well as small scale utilization of natural resources in rivers, lakes, bays, and lagoons (Art. XII, Sec. 2 of the Constitution)
8. Ownership, operation and management of cockpits (Sec. 5 of PD 449)
9. Manufacture, repair, stockpiling and/or distribution of nuclear weapons (Art. II, Sec. 8 of the Constitution) *3
10. Manufacture, repair, stockpiling and/or distribution of biological, chemical and radiological weapons and anti-personnel mines (Various treaties to which the Philippines is a signatory and conventions supported by the Philippines) *3
11. Manufacture of firecrackers and other pyrotechnic devices (Sec. 5 of RA 7183)

Up to Twenty Percent (20%) Foreign Equity

12. Private radio communications network (RA 3846)

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

13. Private recruitment, whether for local or overseas employment (Art. 27 of PD 442)
14. Contracts for the construction and repair of locally-funded public works (Sec. 1 of CA 541, LOI 630) 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. 2a of RA 7718)

15. Contracts for the construction of defense related structures (Sec. 1 of CA 541)

Up to Thirty Percent (30%) Foreign Equity

16. Advertising (Art. XVI, Sec. 11 of the Constitution)


Up to Forty Percent (40%) Foreign Equity

17. Exploration, development and utilization of natural resources (Art. XII, Sec. 2 of the Constitution) *4
18. Ownership of private lands (Art. XII, Sec. 7 of the Constitution; Ch. 5, Sec. 22 of CA 141; Sec. 4 of RA 9182)
19. Operation and management of public utilities (Art. XII, Sec. 11 of the Constitution; Sec. 16 of CA 146)
20. Ownership/establishment and administration of educational institutions (Art. XIV, Sec. 4 of the Constitution)
21. 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 (Sec. 5 of PD 194) *5
22. Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municipal corporation (Sec. 1 of RA 5183)
23. Project Proponent and Facility Operator of a BOT project requiring a public utilities franchise (Art. XII, Sec. 11 of theConstitution;  Sec. 2a of RA 7718)
24. Operation of deep sea commercial fishing vessels (Sec. 27 of RA 8550)
25. Adjustment Companies (Sec. 323 of PD 612 as amended by PD 1814)
26. Ownership of condominium units where the common areas in the condominium project are co-owned by the owners of the separate units or owned by a corporation (Sec. 5 of RA 4726)


Up to Sixty Percent (60%) Foreign Equity

27. Financing companies regulated by the Securities and Exchange Commission (SEC) (Sec. 6 of RA 5980 as amended by RA 8556) *6
28. Investment houses regulated by the SEC (Sec. 5 of PD 129 as amended by RA 8366) *6 (Sec. 6 of RA 5980 as amended by RA 8556) *6
28. Investment houses regulated by the SEC (Sec. 5 of PD 129 as amended by RA 8366) *6

*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 paidup capital per store is not less than US$250,000 (Sec. 5 of RA 8762)

*3 Domestic investments are also prohibited (Art. II, Sec. 8 of the Constitution; 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 (Sec. 5 of PD 194; NFA Council Resolution No. 193 s. 1998)

Philippines Foreign Investment Negative List B

Philippines Business Registration and Incorporation

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Philippines
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