ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Domestic corporations and joint ventures are considered Filipino nationals where at least 60 per cent of their equity is owned by Filipino nationals. Foreign investors may therefore indirectly own land by investing a maximum equity of 40 per cent in domestic corporations or joint ventures.

Detailed explanation-2: -Foreign businesses can own up to 40 percent of critical infrastructure only if the country of the foreign national accords reciprocity to Philippine nationals under a treaty.

Detailed explanation-3: -Up to 40% foreign equity The maximum number a foreigner can own is 40%. Activities on this list are: Manufacturing, repairing, storing, and distribution of products that need the approval of the Philippine National Police clearance.

Detailed explanation-4: -Foreign nationals can own as much as 100% equity of a domestic enterprise if the business activities that the enterprise will engage in are not included in the FINL and the company’s paid-up capital is at least US$200, 000.

Detailed explanation-5: -Anyone, regardless of nationality, can invest in the Philippines with up to 100% equity. A business with 60% Filipino equity is considered a Philippine company, while one with more than 40% foreign equity is considered a foreign-owned domestic company.