Christian I.

Martires
3LM3

NON GRADED Opinion Paper

Who may do business in the Philippines,?

Those who may do business in the Philippines includes those who engage in activities such as:
Soliciting orders, service contracts, Opening offices, whether called “liaison” offices or branches,
Appointing representatives or distributors domiciled in the Philippines or who in any calendar
year stay in the Philippines for a period or periods totaling 180 days or more, Participating in the
management, supervision or control of any domestic business, firm, entity or corporation in the
Philippines, Any other act or acts that imply a continuity of commercial dealings or
arrangements, and contemplate to that extent the performance of acts or works, or the exercise
of some of the functions normally incident to, and in progressive prosecution of, commercial
gain or of the purpose and object of the business organization.

a. Can non-citizens do business in the Philippines? If they can, what are the requirements?

Foreigners may hold interests in corporations, partnerships and other entities in the Philippines,
provided that such corporations, partnerships and other entities are not engaged in an activity
that is reserved by law only to Philippine citizens or to entities that are wholly owned by
Philippine citizens. The maximum amount of foreign equity that is allowed in a company
depends on the type of activity that the company is engaged in.

a foreign corporation (or non-citizens) that is doing business in the Philippines must obtain a
license for this purpose from the Philippine Securities and Exchange Commission (SEC). The
license must be obtained by registering a Philippine branch office or representative office of the
foreign corporation with the SEC. In the alternative, the foreign corporation may incorporate a
Philippine corporation and engage in business in the Philippines through the Philippine
corporation.

b. If you are a citizen, can you automatically do business without having to comply with any
legal requirement?
If there be such a requirement, what would that be?
- No, if you are a citizen you cannot automatically do business without having to comply
with any legal requirement. Because a business proprietor who wishes to start his/her
own business would need to register with the DTI.

2. If you are in business what are the basic registration requirements that you need to comply?
- In the Philippines one doing a business either as a single proprietorship, partnership or
corporation one would need licences or permits to operate. These requirements include
obtaining a local business permit from the local government unit in which the corporation
locates its offices, and certain registrations relating to tax, as well as those to be secured
and applied from employee-welfare agencies. In addition to the basic post-registration
requirements, certain businesses in highly regulated industries may be subject to special
licensing or registration requirements with the government agency having jurisdiction
over such industry