Up to 2021, foreign investment in a domestic oriented enterprise was subject to 40% foreign shareholding limitation if the amount of investment was below the following threshold: US$200,000 or US$100,000 if investment involved advanced technology or employed at least fifty (50) direct employees. For the purposes of the OECD FDIRRI, this restriction is recorded as a minimum capital requirement applicable for foreign investors whishing to establish domestic oriented enterprises only and without any foreign equity limitation.
On March 4, 2022, the Government amended the Foreign Investments Act, allowing foreign investment in more sectors and reducing the scope of application of minimum capital requirement rules. The foreign equity restriction on domestic market enterprises now applies to micro or small domestic market enterprises with paid-in equity of less than the equivalent of USD 200,000. Previously the restriction applied to all domestic enterprises with paid-in equity of less than the equivalent of USD 200,000, regardless of its size classification. Such minimum capital rules are reduced to USD 100,000 for those micro or small domestic market enterprises that (i) involve advanced technology; (ii) are endorsed as start-ups or start-up enablers by the Department of Trade and Industry, Department of Information and Communications Technology, and Department of Science and Technology; or (iii) have Filipinos as majority of their direct employees (but not less than 15 Filipino employees).
"Sec. 3. Definitions. - As used in this Act: [...]
(c) The term "foreign investment" shall mean an equity investment made by a non-Philippine national in the form of foreign exchange and/or other assets actually transferred to the Philippines and duly registered with the Bangko Sentral ngPihpinas;
[...]
Sec. 5. Registration of Investments of Non-Philippine Nationals. - Without need of prior approval, a non-Philippine national, as that term is defined in Section 3(a), and not otherwise disqualified by law may, upon registration with the Securities and Exchange Commission (SEC), or the DTI in the case of single proprietorships, do business as defined in Section 3(d) of this Act or invest in a domestic enterprise up to one hundred percent (100%) of its capital, unless participation of non-Philippine nationals in the enterprise is prohibited or limited to a smaller percentage by existing law and/or under the provisions ofthis Act. [...]
[...]
Sec. 8. List of Investment Areas Reserved to Philippine Nationals (Foreign Investment Negative List).- [...] Except as otherwise provided under Republic Act No; 8762, otherwise known as the Retail Trade Liberalization Act of 2000 and other relevant laws, micro and small domestic market enterprises with paid-in equity capital less than the equivalent of Two hundred thousand US dollars (US$200,000.00), are reserved to Philippine nationals:  Provided, That if: 1) they involve advanced technology as determined by the Department of Science and Technology, or (2) they are endorsed as startup or startup enablers by the lead host agencies pursuant to Republic Act No. 11337, otherwise known as the Innovative Startup Act; or (3) a majority of their direct employees are Filipinos, but in no case shall the number of Filipino employees be less than fifteen (15), then a minimum paid-in capital of One hundred thousand US dollars (US$100,000.00) shall be allowed to non-Philippine nationals [...]" (Republic Act 11647, 2 March 2022, (consolidation of House Bill No. 300 and Senate Bill No. 1156))
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"Only the investment areas and/or activities listed in the attached Twelveth Regular Foreign Investment Negative List shall be reserved for Philippine nationals, subject to the exceptions and conditions indicated therein.
[...]
LIST B: FOREIGN OWNERSHIP IS LIMITED FOR REASONS OF SECURITY, DEFENSE, RISK TO HEALTH AND MORALS AND PROTECTION OF SMALL AND MEDIUM-SCALE ENTERPRISES 
Up to Forty Percent (40%) Foreign Equity [...]
5.    Micro and small domestic market enterprises with paid-in equity capital of less than the equivalent of US$200,000 (R.A. 7042 as amended by R.A. 11647)
6.    Micro and small domestic market enterprises: (i) that involve advanced technology as determined by the Department of Science and Technology (DOST); or (ii) are endorsed as startup or startup enablers by the lead host agencies, namely the Department of Trade and Industry, Department of Information and Communications Technology or DOST, pursuant to R.A. 11337, otherwise known as "Innovative Startup Act"; or (iii) with a majority of their direct employees as Filipinos, but in no case shall the number of Filipino employees be less than fifteen (15), with paid-in equity capital of less than the equivalent of US$100,000 (R.A. 7042 as amended by R.A. 11647)[...]" (Executive Order (EO) No. 175 promulgating the 12th Regular Foreign Investment Negative List (RFINL)))
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Previously up to 2021
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"Except as otherwise provided under the Republic Act No. 8762, otherwise known as the Retail Trade Liberalization Act of 2000 and other relevant laws, micro and small domestic market enterprises with paid-in equity capital less than the equivalent of two hundred thousand US dollars (US$200,000.00), are reserved to Philippine nationals: Provided, That if: [...]
(3) a majority of their direct employees are Filipinos, but in no case shall the number of Filipino employees be less than fifteen (15), then a minimum paid-in capital of One hundred thousan US dollars (US$100,000.00) shall be allowed to non-Philippine nationals. [...]" (Foreign Investments Act of 1991, Republic Act No. 7042, as amended by Republic Act No. 11647)
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"Only the investment areas and/or activities listed in the attached Eleventh Regular Foreign Investment Negative List shall be reserved for Philippine nationals, subject to the exceptions and conditions indicated therein.
[...]
LIST B: FOREIGN OWNERSHIP IS LIMITED FOR REASONS OF SECURITY, DEFENSE, RISK TO HEALTH AND MORALS AND PROTECTION OF SMALL AND MEDIUM-SCALE ENTERPRISES 
Up to Forty Percent (40%) Foreign Equity [...]
6.      Domestic market enterprises with paid-in equity capital of less than the equivalent of US$200,000 (R.A. 7042 as amended by R.A. 8179)
7.      Domestic market enterprises which involve advanced technology or employ at least fifty (50) direct employees with paid-in equity capital of less than the equivalent of US$100,000 (R.A. 7042 as amended by R.A. 8179) [...]" (Eleventh Regular Foreign Investment Negative List (Executive Order No. 65 / 2018))
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"Section 3. [...] f): "the term "domestic market enterprise" shall mean an enterprise which produces goods for sale, or renders services to the domestic market entirely or if exporting a portion of its output fails to consistently export at least sixty percent (60%) thereof;" (RA 7042 amended by RA 8179)
Republic Act 11647, 2 March 2022, (consolidation of House Bill No. 300 and Senate Bill No. 1156)
Executive Order (EO) No. 175 promulgating the 12th Regular Foreign Investment Negative List (RFINL)
Foreign Investments Act of 1991, Republic Act No. 7042, as amended by Republic Act No. 11647
Eleventh Regular Foreign Investment Negative List (Executive Order No. 65 / 2018)
RA 7042 amended by RA 8179
[<a href="https://legacy.senate.gov.ph/republic_acts/ra%2011647.pdf">Act</a>],[<a href="https://www.sec.gov.ph/wp-content/uploads/2024/03/2024_20220627-EO-175-RRD.pdf">List</a>],[<a href="https://lawphil.net/statutes/repacts/ra1991/ra_7042_1991.html">Act</a>],[<a href="https://www.officialgazette.gov.ph/downloads/2018/10oct/20181029-EO-65-RRD.pdf">List</a>],[<a href="https://insightplus.bakermckenzie.com/bm/mergers-acquisitions_5/philippines-president-of-the-philippines-issues-twelfth-regular-foreign-investment-negative-list">Other</a>]