Foreign ownership is limited by mandate of the constitution and specific laws
No Foreign Equity
- Mass media except recording
- Practice of Professions
- Radiologic and x-ray technology
- Retail trade enterprises with paid-up capital of less than US$ 2,500,00
- Private Security Agencies
- Small-scale Mining
- 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
- 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
Up to Forty Percent (40%) Foreign Equity
- Exploration, development, and utilization of natural resources
- Ownership of Private Lands
- Operation and management of public utilities
- Educational institutions other than those established by religious groups and mission boards
- Culture, production, milling, processing, trading except 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
- Facility operator of an infrastructure or a development facility requiring a public utility franchise
- Operation of deep sea commercial fishing vessels
- Adjustment companies
- Ownership of condominium units
- Foreigners are allowed to practice the following professions, provided their country allows Filipinos to be admitted to the practice of these professions: aeronautical engineering, agricultural engineering, chemical engineering, civil engineering, electrical engineering, electronics engineering, electronics technician, geodetic engineering, mechanical engineering, metallurgical engineering, mining engineering, naval architecture and marine engineering, sanitary engineering, medicine, medical technology, dentistry, midwifery, nursing, nutrition and dietetics, optometry, physical and occupational therapy, veterinary medicine, accountancy, architecture, chemistry, custom brokerage, environmental planning, geology, landscape architecture, librarianship, marine deck officers, marine engine officers, master plumbing, sugar technology, social work, teaching, agriculture, fisheries, guidance counseling, real estate service (real estate consultant, real estate appraiser, real estate assessor, real estate broker, and real estate salesperson), respiratory therapy, psychology and interior design,. Architecture, chemistry, electronics engineering, environmental planning, guidance counseling, landscape architecture, metallurgical engineering, naval architecture, and marine engineering, and interior design allow corporate practice in the Philippines.
- Full foreign participation is allowed for the retail trade enterprises: (a) with paid-up capital of USD 2,500,000 or more provided that investments for establishing a store is not less than USD 830,000; or (b) specializing in high-end or luxury products provided that the paid-up capital per store is not less than USD 250,000 (Sec 5 of RA 87562).
- Domestic investments are also prohibited (Art II, Sec. 8 of the Constitution; Conventions/Treaties to which the Philippines is a signatory).
Foreign ownership is limited for a reason 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
- 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
- Perchlorates of ammonium, potassium and sodium
- Amorphous phosphorus
- Hydrogen peroxide
- Strontium nitrate powder
- Telescopic sights, sniper scope and other similar devices
However, the manufacture or repair of these items may be authorized by the Chief of the PNP to foreign nationals; provided that a substantial percentage of output, as determined by the said agency, is exported and 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 foreign nationals; provided that a substantial percentage of output, as determined by the said agency, is exported and 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
- 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
- Lending companies regulated by SEC are allowed to have up to 49% foreign equity participation (Sec. 6 of RA 9474). Financing companies and investment houses regulated by SEC are allowed to have up to 60% foreign equity participation (Sec 6 of RA 5980 as amend by RA 8556; PD 129 as amended by RA 8366).
- Full foreign participation is allowed through financial or technical assistance with the President (Art. XII, Sec. 2 of the constitution).
- The participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation or association must be citizens of the Philippines (Art XII, Section 11 of the Constitution).
- A “public utility” is a business or service engaged in regularly supplying the public with some commodity or service of consequence such as electricity, gas, water, transportation, telephone or telegraph service (Supreme Court ruling on JG Summit Holdings vs Court of Appeals, et al., September 24, 2003). Power generation and the supply of electricity of the contestable market are not considered as public utility operation (Sec 6 and Sec 29 respectively, of RA 9136).
- Control and administration of educational institutions shall be vested in citizens of the Philippines (Art. XIV, Sec 4 (2) of the constitution).
- Full foreign participation is allowed provided that within the 30-year period from the 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).