Foreigners can own a lot more of a Philippine business than they used to. In most industries you can own the whole thing. But not every industry. The Foreign Investment Negative List is the government's running list of the exceptions: the activities where foreign ownership is capped or shut out entirely. If you're a foreign investor, this is the first thing to check, because it decides whether your plan is even possible as written.
What the list actually is
Think of it as the official "here's where the limits are" document. Everything not on it is generally open to full foreign ownership. The list is reviewed and updated from time to time, so the version that matters is the current one, not whatever you read a few years ago.
It splits the restrictions into two groups.
List A: limits set by the Constitution and laws
These are caps that come from the Constitution or from specific laws. Think mass media, certain professions, and a handful of other areas tied to national interest. Some are closed to foreigners completely. Others allow partial ownership up to a fixed percentage, and no further.
List B: limits tied to security, health, and small business
These restrictions exist for reasons like defense, public health, morals, or protecting smaller local enterprises. A common example is a business below a certain amount of paid-in capital, which may be reserved for Filipino ownership. Put enough capital in, and some of these open up.
Capital can change the answer
For several activities, the limit isn't about the industry itself but about how much you invest. Cross a capital threshold and a business that looked restricted may be fully open to you. It's worth running your numbers before assuming you're shut out.
How to use it
The list tells you one of three things about your planned activity: it's open, it's capped at some percentage, or it's off-limits. Start there.
- If your activity isn't on the list, you can usually own all of it.
- If it's capped, you'll need a local partner to hold the rest, so plan the shareholding early.
- If it's closed, you'll need a different structure or a different activity.
The mistake to avoid is building a whole plan and then discovering the ownership math doesn't work. Check the current list against exactly what you intend to do, and confirm the capital figures, before you commit to anything.
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