The Philippines is a top investment destination in Southeast Asia, attracting foreign entrepreneurs and corporations looking to expand. But one common question is: "Can foreigners fully own a business in the Philippines?"
Understanding the Foreign Investment Negative List (FINL)
The Foreign Investment Negative List (FINL) outlines industries restricted to foreign investors. The list has two categories:
🟢 List A (Industries with Full or Partial Foreign Ownership Restrictions)
✔ Mass media, broadcasting, and news agencies – 100% Filipino-owned only
✔ Retail trade with paid-up capital below $2.5M – Limited foreign participation
✔ Small-scale mining and fisheries – Exclusive to Filipino citizens
🟢 List B (Industries with Restrictions for Public Interest & Security)
✔ Defense-related industries – Limited to 40% foreign ownership
✔ Private security services – Limited to 49% foreign ownership
Pro Tip: Foreign investors must check the latest FINL updates before entering a restricted industry.
What Industries Allow 100% Foreign Ownership?
Several sectors allow 100% foreign ownership, especially if registered under PEZA (Philippine Economic Zone Authority) or BOI (Board of Investments).
✅ Industries open to 100% foreign ownership:
✔ IT-BPO (Business Process Outsourcing)
✔ Manufacturing and export-related industries
✔ Renewable energy (under certain conditions)
✔ E-commerce and digital services
✔ Software development & tech startups
👉 Want to know which incentive is better for your business? Read our guide: PEZA vs. BOI: Which Incentive is Right for You?
Why Choose Eh-Sehk?
Navigating foreign business laws in the Philippines can be complex, but Eh-sehk Consulting Inc. makes the process seamless.
✅ Expert guidance on business registration & compliance
✅ Assistance with SEC, BIR, and PEZA/BOI registration
✅ Fast-tracking investment approvals for foreign businesses
✅ Personalized solutions for foreign entrepreneurs
📞 Start Your Business in the Philippines with Ease! Contact Eh-Sehk Consulting Today!