I. Business Organizations

Licensing Requirements for Foreign Business Organizations

Under repealed Republic Act No. 5455, no alien, and no firm, association, partnership, corporation, or any other form of business organization organized under foreign laws, or which is not a Philippine national, or more than thirty percent of whose outstanding capital is owned or controlled by aliens, could do business or engage in economic activity in the Philippines without first obtaining a written certificate from the Board of Investments¹. In addition, no such business organization could be registered, licensed, or permitted by the Securities and Exchange Commission or any other government agency, office, or political subdivision without securing this certification¹.

Under the Foreign Investments Act (Republic Act No. 7042, as amended), a non-Philippine national may invest or do business in the Philippines subject to applicable registration requirements and restrictions, including the Foreign Investment Negative List; a prior Board of Investments certificate under Republic Act No. 5455 is not generally required (Secs. 5 and 17).

Under repealed Republic Act No. 5455, to issue the requisite certificate, the Board of Investments had to certify to the following statutory determinations:

• The operation or activity of the business organization is not inconsistent with the Investments Priorities Plan¹;
• The business or economic activity will contribute to the sound and balanced development of the national economy on a self-sustaining basis¹;
• The business or economic activity by the applicant will not conflict with the Philippine Constitution or laws¹; and
• The targeted field of business or economic activity is not one that is being adequately exploited by Philippine nationals¹.