CorporateCode.ph

Minimum Capital for a Foreign-Owned Philippine Company

There is no single minimum capital that applies to every foreign-owned Philippine company. The answer depends on the activity, foreign-equity percentage, whether the enterprise serves the domestic market, the entity type and any sector-specific law.

Core rule

The Revised Corporation Code does not impose a universal minimum capital stock unless a special law requires one. The Foreign Investments Act as amended by Republic Act No. 11647 contains capitalization rules for certain foreign-owned domestic market enterprises and reduced thresholds when statutory conditions are met.

Questions to answer

  • Is the company a domestic market enterprise or export enterprise?
  • What percentage is foreign owned?
  • Does the activity fall under a sector-specific capital rule?
  • Does the enterprise qualify for a statutory reduced threshold?
  • Is the proposed amount authorized capital, subscribed capital, paid-in capital or branch assigned capital?
  • What proof of inward remittance or contribution is required?

Common mistake

Do not treat the often-quoted US$200,000 or US$100,000 figures as universal. They arise from the Foreign Investments Act framework and may be displaced by export status, a special law, a negative-list restriction or another regulator’s rule.

Capital verification worksheet

  1. Classify the activity and market.
  2. Identify the controlling statute.
  3. Determine the permitted foreign equity.
  4. Identify the applicable capital concept and currency basis.
  5. Document qualification for any lower threshold.
  6. Confirm the SEC and sector-regulator evidence required.

Sources and review

Verified 22 September 2026. Obtain activity-specific confirmation before funding or filing.