A proposed amendment to the Philippines’ Retail Trade Liberalization Act seeks to lower the minimum paid-up capital required for an overseas company to establish a retail business in the Philippines from US$2.5 million to US$200,000.
However, only those foreign companies with established international reputations will be eligible.
The change is expected to be enacted as part of a forthcoming revision of the country’s Foreign Investment Negative List (FINL), which is scheduled to be completed by the end of 2017.
The changes to the FINL are also expected to have an impact well beyond the retail sector. In terms of the construction industry, for instance, it is anticipated that 100% overseas ownership of businesses engaged in the sector will be permitted for the first time.