Mining Company Registration in the Philippines (Foreign-Ownership Limits)

Mining Company Registration in the Philippines

Mining is one of the most tightly regulated sectors for foreign investors in the Philippines. The country’s mineral wealth — nickel, copper, gold, chromite — is constitutionally vested in the State, and the regulatory framework reflects that. Getting the ownership structure and the right mineral agreement in place before SEC registration is not optional; it determines whether your investment is legally sound.

Foreign-Ownership Restrictions Under the FINL

The 13th Foreign Investment Negative List (FINL), effective 2 May 2026 under Executive Order 113, maintains the following positions relevant to mining:

• Small-scale mining — reserved for Filipino nationals (0% foreign equity permitted).
• Large-scale mining — up to 40% foreign equity is permitted in a company holding a Mineral Production Sharing Agreement (MPSA). Full 100% foreign equity is available only through a Financial or Technical Assistance Agreement (FTAA) with the national government, which applies to large-scale exploration, development, and utilisation.

These are constitutionally grounded restrictions rooted in the 1987 Philippine Constitution’s regalian doctrine. They have remained stable across successive FINLs.

For a broader view of which sectors are open to full foreign ownership, see our guide on 100% foreign ownership in the Philippines.

Choosing the Right Structure

FTAA route (100% foreign-owned): An FTAA is negotiated directly with the Philippine government, approved by the President, and administered by the MGB. It covers large-scale exploration and development. The threshold for “large-scale” is defined by the Mining Act of 1995 and MGB regulations. FTAA holders must also comply with Environmental Impact Assessment (EIA) requirements and obtain an Environmental Compliance Certificate (ECC) from the DENR-EMB before commencing operations.

MPSA route (up to 40% foreign equity): A domestic corporation holding an MPSA can accept foreign investors up to a 40% equity stake. Filipino nationals must hold the majority. This route is more common for mid-scale operators with established local partners.

SEC and Agency Registration Steps

1. MGB consultation — confirm mineral agreement type and secure the relevant permit or agreement before, or in parallel with, corporate registration.
2. SEC incorporation — file via eSPARC or OneSEC; state of authorised capital must reflect the activity’s capital requirements.
3. BIR registration — TIN, books of accounts, and e-invoicing compliance.
4. LGU business permit — required for the municipality or city covering the mine site.
5. DENR-EMB ECC — required before exploration or extraction activities begin.
6. DOLE compliance — mandatory once employees are engaged, including Alien Employment Permits for foreign nationals working on site.

How Chamberlain Supports Mining Entrants

Mining registration in the Philippines is not a standard incorporation. It involves multi-agency coordination, constitutional constraints, and sector-specific agreements that most corporate service providers are not equipped to navigate. Chamberlain structures the engagement so the correct ownership framework is established first — before capital is committed — and then manages the SEC and BIR steps at a fixed fee.

Book a consultation to discuss your project, or see our transparent pricing for registration services.