# Foreign Ownership Screening Worksheet

Use this to decide whether a foreign founder can own all or part of a Philippine company.

## 1. Activity screen

Write the exact activity the company will perform. Avoid broad labels like "consulting" or "technology" if the revenue activity is more specific.

Questions:

- Is the activity listed in the current Foreign Investment Negative List?
- Does it involve land ownership, mass media, private security, small-scale mining, public utilities, education, recruitment, retail, finance, or licensed professions?
- Does it require approval from an agency such as SEC, BSP, BOI, PEZA, DOE, DOLE, BI, or an LGU?

## 2. Revenue market screen

Questions:

- Will at least 60% of output or revenue be exported?
- Will customers be mainly Philippine residents or foreign clients?
- Will the company provide services only to a foreign parent or affiliates?

Export status can change both ownership and capital planning.

## 3. Capital screen

Questions:

- Will foreign ownership exceed 40%?
- If yes, does the domestic-market US$200,000 paid-in capital rule apply?
- Is there a credible path to the US$100,000 reduced threshold?
- Is the activity exempt because the company is an export enterprise?

## 4. Anti-Dummy risk screen

Questions:

- Are Filipino nominees being used only to satisfy an ownership cap?
- Will a foreign shareholder control votes, bank accounts, hiring, pricing, or operations beyond their lawful equity?
- Are side agreements changing the real control position?

If the answer is yes, pause before filing.

## 5. Practical outcome

Classify the setup as:

- Open to 100% foreign ownership.
- Open with a capital condition.
- Open only with a Filipino ownership partner.
- Regulated and requiring agency advice before incorporation.
- Not suitable for the proposed structure.

Chamberlain can run this screen before SEC filing so the company is structured correctly from the start.