Minimum Paid-In Capital for Foreign-Owned Companies (2026)

TL;DR: A majority-foreign domestic-market company usually needs US$200,000 paid-in capital. The floor can drop to US$100,000 for advanced technology, registered startup/startup-enabler, or majority-Filipino workforce routes, while export enterprises selling at least 60% abroad are usually outside the FIA capital threshold.

For foreigners, the paid-in capital you need depends on who you sell to, how much you export, and sometimes what industry you’re in — not just the type of company.

Why capital rules exist

The Foreign Investments Act (FIA) sets a minimum paid-in capital for foreign-owned companies so that businesses serving the local market are properly funded and not simply nominal shells. The rule scales with foreign equity and market: the more of the domestic market you sell to as a majority-foreign company, the more capital you must commit. Companies that bring in export revenue — or that stay Filipino-majority — face little or no FIA floor. Capital only matters once you know your activity is open to foreign equity at all, so check it against the 2026 FINL and confirm your maximum foreign ownership first.

The capital tiers at a glance

The US$200,000 default

A domestic-market enterprise that is more than 40% foreign-owned must put in at least US$200,000 of paid-in capital. “Domestic-market” means you primarily sell to customers inside the Philippines, so this is the figure most majority-foreign local businesses start from.

When it drops to US$100,000

The threshold is reduced to US$100,000 if any one of these applies:

• The company uses advanced technology (as determined by the Department of Science and Technology),
• It is a registered startup or startup enabler, or
• It keeps a majority-Filipino workforce with at least 15 direct Filipino employees.

Only one trigger is needed — meet any of the three and your domestic-market floor halves.

The export-enterprise route (the big exemption)

If your company exports at least 60% of its goods or services, it qualifies as an export enterprise. Export enterprises can be 100% foreign-owned and are not subject to the US$200,000 rule — they register under the nominal minimum capital of the Revised Corporation Code. For many service exporters (BPO, software, consulting selling abroad), this is the most efficient structure.

Nominal capital for Filipino-majority companies

A company that is Filipino-majority — 40% foreign equity or less — also escapes the FIA thresholds and only needs the nominal corporate-code minimum, commonly a small peso amount. This is one reason ownership structure and capital planning go hand in hand.

How paid-in capital is proven

Paid-in capital isn’t just stated — it’s certified before or at SEC registration. You prepare a Treasurer’s Affidavit declaring how much of the subscribed capital has actually been paid in, supported by a bank certification confirming the funds were deposited. The corporate treasurer who signs the affidavit must be a resident of the Philippines. These documents go in with your incorporation papers when registering with the SEC, so the capital number on your articles needs to be real money in the bank, not an aspiration.

Sector-specific capital floors

The FIA figures are a baseline, not a ceiling. Some activities carry their own higher capital floors set by sector laws — for example financing companies and retail trade — and where a sector rule sets a higher number, that number controls. So the binding requirement is the higher of the general FIA minimum and any industry-specific floor that applies to your activity.

What this means for you

The right capital figure is a planning decision, not a fixed number. Chamberlain maps your customers, export ratio, headcount, and industry to the lowest compliant capital requirement, then folds it into your cost and timeline so there are no surprises at the bank. Book a free consultation to get your number.