Prohibited and Restricted Ownership Businesses for Foreigners

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

NO FOREIGN EQUITY

1. PRACTICE of PROFESSIONS *1
   1. Engineering
      • Aeronautical
      • Agricultural
      • Chemical
      • Civil
      • Electrical
      • Electronics and Communication
      • Geodetic
      • Mechanical
      • Metallurgical
      • Mining
      • Naval Architecture and Marine
      • Sanitary
   2. Medicine and Allied Professions
      • Medicine
      • Medical Technology
      • Dentistry
      • Midwifery
      • Nursing
      • Nutrition and Dietetics
      • Optometry
      • Pharmacy
      • Physical and Occupational Therapy
      • Radiology and X-Ray Technology
      • Veterinary Medicine
   3. Accountancy
   4. Architecture
   5. Criminology
   6. Chemistry
   7. Customs Brokerage
   8. Environmental Planning
   9. Forestry
   10. Geology
   11. Interior Design
   12. Landscape Architecture
   13. Law
   14. Librarianship
   15. Marine Deck Officers
   16. Marine Engine Officers
   17. Master Plumbing
   18. Sugar Technology
   19. Social Work
   20. Teaching
   21. Agriculture
   22. Fisheries
2. MASS MEDIA except recording (Art. XVI, Sec. 11 of the Constitution; Presidential Memo of 04 May 1994)
3. RETAIL TRADE ENTERPRISES with paid-up capital of not less than US$ 2,500,000 (Sec. 5/R.A. 8762) *2
4. COOPERATIVES Ch. III, Art. 26 of R.A. 6938)
5. PRIVATE SECURITY AGENCIES (Sec. 4 of R.A. 5487)
6. SMALL SCALE MINING (Sec. 3 of R.A. 7076)
7. UTILISATION of MARINE RESOURCES in archipelagic waters, territorial sea, and exclusive economic zone (Art. XII, Sec. 2 of the Constitution)
8. OWNERSHIP, OPERATION and MANAGEMENT of COCKPITS (Sec. 5 of P.D. 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 (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 R.A. 7183)
    UP TO TWENTY PERCENT (20%) FOREIGN EQUITY
12. PRIVATE RADIO COMMUNICATION NETWORK (R.A. 3846)
    UP TO TWENTY-FIVE PERCENT (25%) FOREIGN EQUITY
13. PRIVATE RECRUITMENT , whether for local or overseas employment (Art. 27 of P.D. 442)
14. CONTRACTS for the CONSTRUCTION and REPAIR of LOCALLY-FUNDED PUBLIC WORKS (Sec. 1 of CA 541, LOI 630) except:
    • infrastructure/development projects covered in R.A. 7718; and
    • projects which are foreign funded or assisted and required to undergo international competitive bidding(Sec. 2(a) of R.A. 7718)
15. CONTRACTS for CONSTRUCTION of DEFENCE RELATED STRUCTURE (Sec. 1 of CA 541)
    UP TO THIRTY PERCENT (30%) FOREIGN EQUITY
16. ADEVERTISING (Art. XVI, Sec. 11 of the Constitution)
    UP TO FORTY PERCENT (40%) FOREIGN EQUITY
17. EXPLORATION, DEVELOPMENT and UTILISATION 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)
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 or otherwise, RICE and CORN and the BY-PRODUCTS THEREOF (Sec. 5 of PD 194; Sec. 15 of R.A. 5762) *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 R.A. 5183)
23. PROJECT PROPONENT and FACILITY OPERATOR of a BOT PROJECT requiring a PUBLIC FACILITIES FRANCHISE (Art. XII, Sec. 11 of the Constitution; Sec. 2a of R.A. 7718)
24. OPERATION of DEEP SEA COMMERCIAL FISHING VESSELS (Sec. 27 of R.A. 8550)
25. ADJUSTMENT COMPANIES (Sec. 323 of P.D. 612 as amended by P.D. 1814)
26. OWNERSHIP of CONDOMINIUM UNITS where the common areas in the condominium projects are co-owned by the owners of the separate units or owned by a corporation (Sec. 5 pf R.A. 4726)
    UP TO SIXTY PERCENT (60%) FOREIGN EQUITY
27. FINANCING COMPANIES regulated by the Securities and Exchange Commission (Sec. 6 of R.A. 5980 as amended by R.A. 8556) 6
28. INVESTMENT HOUSES regulated by the SEC (Sec. 5 of P.D. 129 as amended by R.A. 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 paid-up capital per store is not less than US$250,000 (Sec. 5 of R.A. 9762)

*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 P.D. 194; NFA Council Resolution No. 193 s. 1998)

*6 No foreign national may be allowed to own stock in financing companies or investment houses unless the country of which he is a national accords the same reciprocal rights to Filipinos (Sec. 6 of R.A. 5980 as amended by R.A. 8556; P.D. 129 as amended by R.A. 8366)