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Internet businesses: 100% foreign ownership now allowed in Philippines

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October 31, 2018 By M G Martin Leave a Comment

Foreigners can now own 100 per cent of internet businesses in the Philippines, as part of new changes to ownership rules.

President Duterte has approved a new list of investment areas where foreign ownership is allowed — including internet businesses.

The 11th Regular Foreign Investment Negative List is only slightly shorter than the previous list approved by then-president Benigno Aquino III in 2015.

This new list is promulgated by President Duterte’s Executive Order No 65, which was signed on Monday but made public today (Wednesday, October 31).

The five investment areas and activities that can now be 100 per cent owned by foreigners are the following, according to the National Economic and Development Authority:

Internet businesses

Teaching at higher education levels provided the subject being taught is not a professional subject

Training centres that are engaged in short-term high level skills development that do not form part of the formal education system

Adjustment companies, lending companies, financing companies, and investment houses

Wellness centres

Other major changes include allowing foreigners to own up to 40 per cent of contracts for the construction and repair of locally-funded public works (except for infrastructure or development projects covered in Republic Act 7718), and projects which are foreign-funded or assisted and required to undergo international competitive bidding.

Previously, foreigners could only have up to 25 per cent equity in such contracts.

Foreigners can also now own up to 40 per cent of private radio communications networks, compared to only up to 20 per cent in the 2015 list.

The easing of such foreign ownership restrictions comes amid plans to encourage the development of infrastructure with the help of foreign governments and firms, particularly  from China.

The new list reflects changes in mass media technology by exempting the “internet business” from the types of mass media enterprises where foreign ownership is banned.

It also widens the list of professions which foreigners are allowed to practice in the country and allows foreigners to teach in higher education institutions (as long as the subject they are teaching is not a professional subject).

http://philippineslifestyle.com/internet-businesses-100-per-cent-philippines/

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RangerUp
13 hours ago, softail said:

lending companies

How does a"lending company" differ from a bank?

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Cgu
14 hours ago, softail said:

October 31, 2018 By M G Martin Leave a Comment

Foreigners can now own 100 per cent of internet businesses in the Philippines, as part of new changes to ownership rules.

President Duterte has approved a new list of investment areas where foreign ownership is allowed — including internet businesses.

The 11th Regular Foreign Investment Negative List is only slightly shorter than the previous list approved by then-president Benigno Aquino III in 2015.

This new list is promulgated by President Duterte’s Executive Order No 65, which was signed on Monday but made public today (Wednesday, October 31).

The five investment areas and activities that can now be 100 per cent owned by foreigners are the following, according to the National Economic and Development Authority:

Internet businesses

Teaching at higher education levels provided the subject being taught is not a professional subject

Training centres that are engaged in short-term high level skills development that do not form part of the formal education system

Adjustment companies, lending companies, financing companies, and investment houses

Wellness centres

Other major changes include allowing foreigners to own up to 40 per cent of contracts for the construction and repair of locally-funded public works (except for infrastructure or development projects covered in Republic Act 7718), and projects which are foreign-funded or assisted and required to undergo international competitive bidding.

Previously, foreigners could only have up to 25 per cent equity in such contracts.

Foreigners can also now own up to 40 per cent of private radio communications networks, compared to only up to 20 per cent in the 2015 list.

The easing of such foreign ownership restrictions comes amid plans to encourage the development of infrastructure with the help of foreign governments and firms, particularly  from China.

The new list reflects changes in mass media technology by exempting the “internet business” from the types of mass media enterprises where foreign ownership is banned.

It also widens the list of professions which foreigners are allowed to practice in the country and allows foreigners to teach in higher education institutions (as long as the subject they are teaching is not a professional subject).

http://philippineslifestyle.com/internet-businesses-100-per-cent-philippines/

This is a step in the right direction. However more interesting is the removal of the 40% cap in "power generation and the supply of electricity to the contestable market.”

This means that now foreign companies can own 100% of power generation of renewable energy (power generation was already allowed to be 100% owned by foreigners, but not with renewables). That might be interesting.

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Cgu
37 minutes ago, RangerUp said:

How does a"lending company" differ from a bank?

Ahh, a banking question.

Well it seems that you only go to bank to get loans:D? Think what other services a bank offers and you will get the answer...maybe you have a ATM card....

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TimL

It will be interesting to see a breakdown of just what they consider to be an internet business. 

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Cgu
21 minutes ago, TimL said:

It will be interesting to see a breakdown of just what they consider to be an internet business. 

In short an ISP.

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RangerUp
6 hours ago, Cgu said:

Well it seems that you only go to bank to get loans:D? Think what other services a bank offers and you will get the answer...maybe you have a ATM card....

What? No. I meant how do they differ as a legal entity.

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Cgu
11 minutes ago, RangerUp said:

What? No. I meant how do they differ as a legal entity.

What do you define as legal entities?  There are no differences between sectors/industries. The legal entity defines ownership / structure (and normally no sector specifics, unless you want to set up NGO or some kind of tax vehicle, i.e. trust)

Your question was not about that...

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RangerUp
25 minutes ago, Cgu said:

What do you define as legal entities? 

Foreigners are now allowed to own "Adjustment companies, lending companies, financing companies, and investment houses" - here's the question once again - how do these entities differ, as legally defined, from banks. 

 

 

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Cgu
34 minutes ago, RangerUp said:

how do these entities differ, as legally defined, from banks. 

No legal difference in legal entity definition - see my answer above - (the difference is what kind of business/sector you engage - see also my answer about - banking or "just" lending).

Of course the requirements might be different...not the entity definition

Edited by Cgu

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Headshot
43 minutes ago, RangerUp said:

Foreigners are now allowed to own "Adjustment companies, lending companies, financing companies, and investment houses" - here's the question once again - how do these entities differ, as legally defined, from banks.

How do pawn shops differ from banks? That is pretty much what we're talking about here. People or organizations whose main purpose is to loan money in return for collateral. They have no other business. No checking accounts, no savings accounts and no ATM cards. Do you understand now?

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RangerUp
1 minute ago, Headshot said:

How do pawn shops differ from banks?

The question is how do they differ under the legal definition.

Under these new regulations, a foreigners can own "Adjustment companies, lending companies, financing companies, and investment houses".

Does this include pawn shops?

Does this include banks?

Probably questions only a Filipino attorney can answer anyway.

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Davaoeno
7 hours ago, RangerUp said:

The question is how do they differ under the legal definition.

Under these new regulations, a foreigners can own "Adjustment companies, lending companies, financing companies, and investment houses".

Does this include pawn shops?

Does this include banks?

Probably questions only a Filipino attorney can answer anyway.

there are none so blind ..

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