MATRIX OF INDUSTRIES WHICH ARE RESTRICTED FROM FOREIGN OWNERSHIP

DIFFERENT INDUSTRIES PROVISIONS OF LAW THAT RESTRICT

THE OWNERSHIP OF FOREIGNERS

1. Educational corporations. other than those established by religious

orders and mission boards, at least 60% of
the capital of which is owned by citizens of
the Philippines. The control and
administration of educational institutions shall
be vested in Filipino citizens (Ibid., Art. XIV,
Sec. 4[1].);
2. Corporations for exploration, at least 60% of the capital of which is owned
development, and utilization of by citizens of the Philippines. (Constitution of
natural resources. the Philippines, Art. XII, Sec. 2.) The word
"capital" in the above constitutional provision
should be understood to mean "outstanding
capital stock" in case of stock corporation;
3. Public service corporations. at least 60% of the capital of which is owned
by citizens of the Philippines. The
participation of foreign investors in the
governing body of any public utility enterprise
shall be limited to their proportionate share in
its capital, and all the executive and
managing officers of such corporation must
be Filipino citizens (Ibid., Art. XII, Sec. 11.);
4. Corporations engaged in the at least 70% of the voting capital stock shall
pawnshop business. be owned by citizens of the Philippines (Pres.
Decree No. 114, Sec. 8.);
5. Corporations engaged in the Must be 100% Filipino owned (R.A. No. 5487,
operation of a private detective, Sec. 4.);
watchman or security guard
agencies.
6. Corporations engaged in coastwise at least 60% of the capital stock of which or
shipping. of any interest in said capital is totally owned
by citizens of the Philippines (Pres. Decree
No. 1464 [Tariff and Customs Code], Sec.
806.);
7. Corporations engaged in mass the first must be wholly (i.e., 100%) owned
media and advertising industry. and managed by Filipino citizens,14 while at
least 70% of the capital stock of the second
must be owned by citizens of the Philippines.
The participation of foreign investors in the
governing body of a corporation engaged in
MATRIX OF INDUSTRIES WHICH ARE RESTRICTED FROM FOREIGN OWNERSHIP

the advertising industry shall be limited to

their proportionate share in the capital
thereof, and all the executive and managing
officer of such corporation must be Filipino
citizens (Ibid., Art. XVI, Sec. 11.);
8. Rural banks. the capital stock of which must be fully owned
and held directly or indirectly by Filipino
citizens or corporations, associations, or
cooperatives qualified under Philippine laws
to own or hold such capital stock (R.A. No.
7353, Sec. 4.);
9. Banking corporations at least 60% of the capital stock of any bank
or banking institution which may be
established after the approval of the General
Banking Act (July 24, 1948) shall be owned
by citizens of the Philippines (Rep. Act No.
377, Sec. 2.);
10. Financing companies. at least 60% of the capital stock shall be
owned by citizens of the Philippines (R.A. No.
5980, as amended, Sec. 16.);
11. Corporations engaged in retail the capital of which must be wholly owned by
trade. citizens of the Philippines (R.A. No. 1180,
Sec. 1.);
12. Corporations engaged in the at least 75% of the authorized and voting
recruitment and placement of capital stock is owned and controlled by
workers, locally or overseas. Filipino citizens (Pres. Decree No. 442 [Labor
Code], as amended, Sec. 27.); and
13. Under the Flag Law. In the purchase of articles for the
Government, preference shall be given to
materials and supplies produced, made, or
manufactured in the Philippines, and to
domestic entities. The term "domestic
entities" means any citizen of the Philippines
or any corporate body or commercial
company at least 75% of the capital of which
is owned by citizens of the Philippines. (C.A.
No. 138, Sec. 1.)