The domestic stock corporation is the most common structure foreigners use to build a long-term business in the Philippines. It is incorporated under the Revised Corporation Code, registered with the Securities and Exchange Commission (SEC), and treated as a Philippine legal entity — separate from its shareholders.
Ownership and the FINL
Foreigners can hold up to 100% of shares in sectors not restricted by the Foreign Investment Negative List (FINL). The current list is the 13th Regular FINL (EO 113, effective 2 May 2026). If your activity appears on the FINL, a maximum foreign equity cap (e.g. 40%) may apply — so confirming your sector against the current FINL is the first step.
Export enterprises — companies that export at least 60% of their output — generally qualify for full foreign ownership regardless of sector. See 100% foreign ownership rules for the full picture.
Minimum Paid-In Capital
The paid-in capital requirement depends on your activity and ownership structure:
- USD 200,000 (peso equivalent at prevailing BSP rate) — general rule for businesses serving the local market with 100% foreign ownership
- USD 100,000 — available to companies that keep a majority-Filipino workforce with at least 15 direct Filipino employees or involve advanced technology as certified by DOST
- Export enterprises may be eligible for a lower threshold
These are statutory floors set by the Foreign Investments Act. The capital must be inwardly remitted and documented. See minimum paid-in capital in 2026 for a detailed breakdown.
When to Choose a Domestic Corporation
A domestic corporation suits most foreign investors because:
- It can earn income from Philippine customers
- It can own property (through a 60/40 structure where real estate is involved)
- Shareholders have limited liability — personal assets are protected
- It is eligible for special economic zone incentives under the CREATE MORE Act
- It gives the company a permanent, recognisable Philippine identity
It is generally the right choice unless your parent company needs to keep the Philippines operation as a branch (for consolidated reporting) or you only need a liaison presence.
Registration Process
The SEC’s eSPARC / OneSEC system handles electronic filing. The process involves name verification, submission of Articles of Incorporation and By-Laws, payment of filing fees, and post-SEC registration with the BIR and the local government unit. Chamberlain manages this end to end at a fixed fee — no surprise invoices.
Book a consultation to confirm your sector eligibility and get a fixed quote, or review our pricing and the entity types comparison.
Frequently asked questions
Can a foreigner set up a domestic corporation in the Philippines?
Yes. A domestic stock corporation can be up to 100% foreign-owned in most business activities, subject to the Foreign Investment Negative List and the applicable minimum paid-in capital requirement.
What is the minimum capital for a 100% foreign-owned domestic corporation?
Generally USD 200,000 (roughly the peso equivalent), reduced to USD 100,000 for companies that keep a majority-Filipino workforce with at least 15 direct Filipino employees or involve advanced technology, as determined by DOST. Export enterprises (60%+ exports) may qualify for lower thresholds.
How long does it take to incorporate?
SEC registration through eSPARC / OneSEC typically takes 1–2 weeks once documents are in order. Add BIR registration and local permits and the full process is usually 2–4 weeks.