Business Registration

MultiRational assists companies in determining the type of businesses that can be established in the Philippines. We have already worked with several government agencies such as:

• Securities and Exchange Commission (SEC)
• Bureau of Internal Revenue (BIR)
• Department of Trade and Industry (DTI)

Aside from these government agencies, there are other affiliated organizations that provide tax incentives depending on the areas that your business would be established in. These organizations are the following:

• The Philippine Economic Zone Authority (PEZA) 
• The Philippine Board of Investments (BOI)
• The Philippine Bases Conversion Development (BCDA)
• Cagayan Economic Zone Authority (CEZA)
• Subic Bay Freeport Zone (SBMA)
• Clark Development Corporation (CDC)

Foreign Investment Act (FIA)

Foreign investors in the Philippines are allowed to invest 100% in a domestic enterprise as long as their investments are made within areas that are listed under the Foreign Investment Act or FIA. Investors who had a paid-up capital of at least US$200,000 may be trimmed down to US$100,000. This is only applicable if the venture introduces cutting-edge technology or employs at least 50 direct personnel or if the products/services are designated for exports.

The Foreign Investment Act covers all of the investment areas with the exception of banking and other financial institutions that are governed by the Banko Sentral ng Pilipinas (BSP).

Foreign Investment Negative List

The Foreign Investment Negative List covers certain areas of economic activity whose foreign ownership is limited to 40% of the outstanding capital stock in cases of a corporation or capital partnership. This is also known as the 60/40 rule.