Domestic Corporation with more than 40% Foreign Ownership= USD 200,000 **

** Required of more than 40% to 100% foreign owned business catering to the Philippines domestic
market. Can be lowered to USD 100,000 under certain conditions:

1. Hiring a minimum of 50 employees

2. The use of new technology approved by the Department of Science and Technology.

Export enterprises and other businesses whose income is derived from overseas such as but not
limited to BPOs and call centers can file for an exemption which will allow a minimum of PHP 100,000
paid-up capital.

I am a foreigner. Do I really need to put in US$200,000 to incorporate a company here?

Yes, Under usual circumstances, you really need to remit USD200,000 into a Philippines bank account as part
of the process to incorporate your company here in the Philippines. The money can be withdrawn after the
release of the SEC certificate.

If your company is considered as an export market enterprise (i.e. more than 60% of your revenue or output is
exported from the Philippines), then you are not required to put up $200,000.00 as paid up capital. The
minimum paid up capital for an export market enterprise is only Php5,000.00. However, if your company is
considered as a domestic market enterprise, and subject to the foreign investment negative list, then you are
required to invest US$200,000 for you to be able to set up a 100% foreign owned company. Please take note
though that foreigners are generally not allowed to engage in retail business (as this is reserved for Filipinos),
unless they are investing $2.5 million.

The FIA clearly states that if the activity to be engaged in: is not included in the FINL, is more than 40%
foreign-owned, and will cater to the domestic market, the capital required is at least two hundred
thousand dollars (US$200,000.00). The capital may be lowered to one hundred thousand dollars
(US$100,000.00), if activity involves advance technology, or the company employs at least 50 direct
employees.

f the foreign company will export at least 60% of its output, or a trader that purchases products
domestically will export at least 60% of its purchases, the required capital is only Php5,000.00.

If the company is at least 60% Filipino-40% foreign-owned and will cater to the domestic market, paid-in
capital of the corporation can be less than US$200,000.00.