Foreign Corporation
Foreign Corporation
There are no restrictions on the extent of foreign ownership of export enterprises. For domestic market enterprises, where foreign ownership exceeds 40%, foreigners can have as much as a 100% equity investment with a US$200,000 inward capital remittance except in areas included in the foreign investment negative list.
Pros:
- Larger market to sell its products and services;
- Low-cost of settling up the business, unlike in principal country;
- Talented laborer and low-cost salary;
- There is a good-enough infrastructure; and
- There is an incentive from the government, including tax-exemptions
Cons:
- More holidays in the Philippines;
- The law favors the laborer according to the labor code;
- Constitutional and other legal limitations for foreigners;