What Is the Minimum Capital Required for a Foreign-Owned Company in the Philippines?

October 12, 2026 Posted by ASEAN Briefing Written by Ayman Falak Medina Reading Time: 2 minutes

Foreign-owned companies in the Philippines generally need at least US$200,000 in paid-in capital if they operate in the domestic market and have more than 40 percent foreign ownership. Qualifying businesses may establish operations with US$100,000, while export-oriented corporations can have a minimum paid-up capital of PHP 5,000 (US$90).

What are the minimum capital requirements for foreign-owned companies?

Business category	Minimum capital requirement
Foreign-owned domestic market enterprise	US$200,000
Qualifying domestic market enterprise	US$100,000
Export-oriented domestic corporation	PHP 5,000 (US$90)
Company with 40 percent or less foreign ownership	No general US$200,000 foreign-investment threshold

The US$100,000 minimum is available to domestic market enterprises whose activities involve advanced technology, as determined by the Department of Science and Technology, or that are endorsed as startups or startup enablers by the appropriate government agency. It also applies where most of the company’s direct employees are Filipino, with at least 15 Filipino direct employees.

Planning to establish a foreign-owned company in the Philippines? Contact Dezan Shira & Associates for incorporation assist...

Businesses seeking the employment-based reduction may initially submit a notarized undertaking to meet the employment conditions. Compliance is subsequently subject to government verification and monitoring.

Export-oriented corporations must generally export at least 60 percent of their goods or services to qualify for the lower capital requirement.

Which industries have different minimum capital requirements?

Foreign-owned retail businesses generally require at least PHP 25 million (US$450,000) in paid-up capital. Retailers operating more than one physical store must also meet a minimum investment of PHP 10 million (US$180,000) per store, subject to applicable exemptions.

The per-store investment can include equipment, inventory, and other qualifying business assets rather than an additional cash contribution. Foreign retailers must generally maintain the required PHP 25 million capital in the Philippines throughout their operations, although it may be invested in eligible business assets.

Foreign retailers must also satisfy reciprocity requirements, meaning their home country must permit Filipino retailers to enter its market.

Foreign investors establishing a Philippine branch office must consider assigned capital requirements rather than ordinary share capital rules. A domestic-market branch generally requires US$200,000 in assigned capital. Branches exporting at least 60 percent of their goods or services are generally exempt from this threshold.

The Philippines’ 13th Regular Foreign Investment Negative List, effective May 2, 2026, identifies activities reserved for Filipino nationals or subject to foreign equity limits.

Can foreign investors use their paid-in capital for business expenses?

Foreign investors can generally use paid-in capital to fund legitimate business expenses, including purchasing equipment, renting premises, paying salaries, and covering operating costs. The capital does not ordinarily need to remain untouched in a bank account, although capital maintenance rules and industry-specific restrictions may apply.

Unsure which capital requirements apply to your investment? Speak with Dezan Shira & Associates for tailored guidance.

Paid-in capital refers to the amount shareholders have contributed to the company, rather than the authorized capital stated in its incorporation documents. Contributions may be made in cash or qualifying non-cash assets, subject to applicable valuation and documentation requirements.

Foreign investors should maintain records of their capital contributions and how the funds are used to demonstrate compliance with applicable capitalization requirements.

Contact Dezan Shira & Associates for company establishment in the Philippines

Dezan Shira & Associates assists foreign investors with company incorporation, capital structuring, foreign ownership compliance, and regulatory requirements in the Philippines. Contact us for assistance with capital planning and company incorporation in the Philippines.

About Us

ASEAN Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Jakarta, Indonesia; Singapore; Hanoi, Ho Chi Minh City, and Da Nang in Vietnam; and Kuala Lumpur in Malaysia. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.

For a complimentary subscription to ASEAN Briefing’s content products, please click here. For support with establishing a business in ASEAN or for assistance in analyzing and entering markets, please contact the firm at asean@dezshira.com or visit our website at www.dezshira.com.