Just recently, Republic Act 10881 titled “An Act Amending Investment Restrictions in Specific Laws Governing Adjustment Companies, Lending Companies, Financing Companies and Investment Houses Cited in The Foreign Investment Negative List And For Other Purposes – lapsed into law on July 17, 2016 without the signature from former President Benigno Aquino.
Under the Philippine Constitution, a proposed law submitted by Congress will lapse into law if the President will not act on it after 30 days from receipt.
Prior to the enactment of RA 10881, foreigners were only allowed a maximum of 60% ownership in Financing, Lending and Investment Houses companies and 40% maximum ownership in Adjustment companies.
For those who may ask, the manimum paid-up capital requirements for Financing companies is Php10 Million if you will locate in Metro Manila, P5 Million for outside the Metro and P2.5 Million if you locate in Municipalities.
With the enactment of this law, foreigners can now own 100% ownership of these type of businesses.
You can download a PDF copy of RA 10881 here.
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