Retail Trade Enterprise are businesses that sell directly to consumers.

Under the law (RA 8762 – Retail Trade Liberalization Act of 2000) , up to 100% foreign
ownership is allowed for retail trade enterprises for two categories of businesses:

 Category A: Have a paid-up capital of USD 2.5 Million or more

 Category B:Specializing in high end or luxury products, provided that the paid-up
capital per store is not less than USD 250,000.00 (Sec. 5 of R.A. 8762)
Additional qualification requirements for foreign retailers can be found below:

 Parent company with USD 200M net worth (USD 50M net worth for luxury
brands)
 At least 5 branches or franchises around the world OR at least one store
capitalized at a minimum of USD $25M
 Five year track record in retailing; and
 Only nationals from, or juridical entities formed or incorporated in Countries
which allow the entry of Filipino retailers shall be allowed to engage in retail trade in the
Philippines.
Finally, all retail trade enterprises under category A that exceeds 80% foreign equity
must list and offer a minimum of 30% equity in any stock market in the Philippines. This
should be done within 8 years from the company’s start of operations.

1. Are Amazon, Alibaba, eBay, or internet shopping in general, a form of retail trade? a. If
yes, are they violating the Retail Trade Law by selling their goods here in the Philippines
through internet?

There are several factors to consider in registering an e-Commerce company/Internet

company in the Philippines. Company formation and paid up capital will depend on the
the nature of the business and the company’s targeted clientele.

 If the company will be fully foreign owned,  will not be engaged in retail and will
cater to the local or Philippine market, the paid-up capital is USD 200,00 and can
be formed as a Domestic Corporation.
 If the company will be fully foreign-owned, will not be engaged in retail, will cater
to international clients or clients located overseas, the paid-up capital is at PHP
5,000, minimum and can be formed as a Domestic Corporation.
 If the company will be Filipino owned and will cater to the local or international
market, the paid-up capital is a minimum of PHP 5,000 and can be formed as a
Domestic Corporation
 If the company will be foreign-owned and will be engaged in retail/online retail,
the paid-up capital is USD 2.5 Million.