What Are the Foreign Ownership Rules in the Philippines?
Foreign ownership rules in the Philippines regulate equity or control by foreign individuals or corporations in local businesses or assets. These are governed by the Philippine Constitution, the Foreign Investments Act (FIA), and the Foreign Investment Negative List (FINL).
The 11th Regular FINL has eased restrictions—up to 100% foreign ownership in the Philippines is now allowed in sectors such as retail, manufacturing, and renewable energy.
Regardless of the industry or sector you’re planning to enter in the Philippines, we’re here to help you navigate the legal landscape with confidence.
What’s New in 2025? (Recent Updates)
The government is actively promoting FDI Philippines by liberalizing key sectors:
- Amendments to the FIA (RA 11647)
– Enables technology-driven SMEs to be 100% foreign‑owned corporations under specific thresholds
– Addresses Philippines corporation foreign ownership and foreign investor Philippines requirements - Retail Trade Liberalization Act (RA 11595)
– Cuts minimum capital from $2.5M to ₱25M
– Encourages foreign investment Philippines in retail - Public Services Act Amendment (RA 11659)
– Clarifies the 60-40 rule Philippines for utilities
– Opens telecom, airlines, shipping, and rail to full foreign equity - Renewable Energy Act Amendment
– Removes equity cap, allowing 100% foreign ownership of renewable energy projects
Industries Now Open to 100% Foreign Ownership (2025)
These sectors now permit full foreign equity under updated laws:
| Industry | Ownership Cap |
| Renewable Energy (solar, wind) | 100% |
| Retail (capital ≥ ₱25M) | 100% |
| Telecom & Internet Services | 100% |
| Airlines & Railways | 100% |
| Domestic Shipping | 100% |
| Manufacturing (non-defense) | 100% |
| BPO & IT Services | 100% |
| Hotels & Resorts | 100% |
| Export‑Oriented Enterprises | 100% |
Note: Foreigners still cannot own land outright, but can lease for 50 years (renewable) or invest in Philippines corporations with foreign ownership under the 60‑40 rule.
Still Restricted Sectors: The 60‑40 Rule in Action
The 60‑40 rule Philippines remains in force for:
- Mass media
- Licensed professions (law, medicine)
- Small‑scale mining
- Rice & corn production
- Private security services
- Cooperatives
These are limited to 40% or less foreign equity, preserving certain industries for Filipino ownership.
Why These Changes Matter
- Increased foreign direct investment (FDI Philippines)
- Clearer foreign investor Philippines requirements
- Easier business setup Philippines and company registration
- Access to new sectors and incentives for foreign corporations
Data Insight: BOI reports a 40% surge in investments in liberalized industries over the last year.
Tips for Foreign Entrepreneurs
1. Know Foreign Investor Philippines Requirements
– Check paid-up capital, employee count, and industry specifics.
2. How to Register Foreign Corporation Philippines
– File with SEC, obtain necessary permits (BOI/PEZA), and comply with equity caps.
3. Philippines Investment Incentives for Foreigners
– Use BOI vs PEZA foreign investors comparison to choose the best route.
4. Compliance with 60‑40 Rule Philippines
– Ensure proper corporate structure or joint ventures in restricted sectors.
5. Leverage FDI Philippines Programs
– Explore tax incentives, duty exemptions, and export benefits.
How Philippine Hub Partners Can Help
At Philippine Hub Partners, we guide foreign investors through:
- Company registration & equity structuring (Philippines corporation foreign ownership)
- Permits & compliance based on foreign investor Philippines requirements
- BOI and PEZA registration (exploring FDI Philippines benefits)
- Nominee services and corporate secretarial support
Contact us today for a consultation on expanding your business in the Philippines under the latest regulatory framework.
Voice-Search FAQs
What businesses can foreigners own in the Philippines?
They can fully own companies in retail (capital ≥ ₱25M), renewable energy, telecom, BPO, airlines, and more. Some sectors still follow the 60‑40 rule.
Can foreigners own land in the Philippines?
No. Foreigners can lease land for up to 50 years (renewable once for 25) or invest in condominiums and Philippines corporations with foreign ownership.
Additional Resources
- Board of Investments (BOI)
- Securities and Exchange Commission (SEC)
- Philippine Economic Zone Authority (PEZA)
- Foreign Investments Act Amendment (RA 11647)
- Public Services Act Amendment (RA 11659)
