Foreign Business Ownership in the Philippines


Setting up a foreign-owned business in the Philippines is no walk in the park. A foreign-owned corporation must obtain the necessary permits and licenses, register with the proper government agencies, and make the required capital investments   before setting up business operations inside the country. Business Registration procedures in the Philippines are different for sole proprietorships, representative offices, branch offices, regional headquarters (RHQs), domestic corporations or subsidiaries. The type of business established by the foreign investor is determined by the kind of industry that he/she wants to engage in. Under the 1991 Foreign Investments Act (FIA), foreign investors are allowed to engage in any business enterprise, as long as it doesn’t fall under the foreign investments negative list established by the Philippine government, wherein foreign ownership is restricted to a small percentage of the company and the investor is required to establish a corporate presence inside the country.

Online Gaming Boosts Philippine Economy

Fueled by advancements in computer technology, the Online Gaming industry has become one of the biggest moneymakers in the Philippines today. As responsible online gaming becomes an accepted form of recreation or diversion for a number of Filipinos, the annual profits of online casinos, bingo and sports-betting companies keep increasing at a tremendous rate. PhilWeb, one of the largest online gaming companies in the Philippines today, posted a profit increase of 52% in the first quarter of 2010 alone. Company revenues also rose by 42%, totaling to about Php 239 million. The number is still expected to double, even as the year progresses.