If you’re launching a large-scale platform business like Google, Facebook, Amazon, or YouTube in the Philippines, or a small or medium-sized business using Twitter or YouTube for marketing purposes, 100% foreign investment is possible depending on the industry. However, the Philippines has a regulation called the Foreign Investment Negative List (FINL), which places restrictions on investment ratios in certain industries.
The table below summarizes the business types you may be interested in and the estimated investment ratios.
| Business Description | Expected Industry Classification and Notes | Maximum Foreign Capital Ratio | Major Conditions and Points to Note | |
|---|---|---|---|---|
| Google, Facebook, Amazon, YouTube, etc. | Large-scale platform operation (if applicable to communications or broadcasting, or if handling critical infrastructure such as data centers) | 40% or less | Under the revised Public Services Act, telecommunications businesses can be 100% foreign-owned, but broadcasting and other public services remain subject to restrictions. | |
| Platform operation business | ||||
| Digital marketing, advertising agency, SNS consulting using Twitter, YouTube, etc. (Generally interpreted as not subject to FINL restrictions) | 100% | For 100% foreign capital targeting the domestic market, a paid-up capital of at least US$200,000 is required as a general rule (this can be reduced to US$100,000 depending on the conditions). | ||
| Marketing Business (Small/Medium Scale) | ||||
| Marketing Business (for Export) | Registered as an “Export Company” with at least 60% of its sales exported. | 100% | Export companies are exempt from minimum capital requirements unless they fall under the negative list. | |
| Business within PEZA (Special Economic Zone) | PEZA-certified export-oriented business (e.g., IT-BPO) | 100% | In order to receive PEZA preferential treatment (e.g., corporate tax exemption), certain conditions, such as the export ratio, must be met. |
📊 Foreign Investment Restrictions and the Negative List
In accordance with the Foreign Investment Law, the Philippines regularly updates its Foreign Investment Negative List (FINL). This list lists industries in which foreign capital entry is prohibited or restricted for reasons such as national security, the public interest, and the protection of domestic small and medium-sized enterprises.
- List A: This section lists industries in which foreign investment is restricted by the Constitution or specific laws (e.g., mass media, certain professions, natural resource development, etc.).
- List B: This section lists industries in which foreign investment is restricted for reasons of national security, defense, public health, protection of public order, or protection of small and medium-sized enterprises.
Digital marketing businesses are generally not explicitly listed on this negative list, and in most cases, 100% foreign ownership is permitted.
⚠️ Capital Requirements
In principle, a paid-up capital of at least $200,000 is required for a 100% foreign-owned business operating in the domestic market. However, this requirement is reduced to $100,000 if any of the following conditions are met:
- The company utilizes advanced technology certified by the Department of Science and Technology (DOST).
- The company is certified as a “startup” or “startup support organization” under the Innovative Startup Act.
- The company directly employs at least 15 Filipinos (previously, the requirement was 50 or more).
On the other hand, if you are registering as an export company (a company that exports 60% or more of its production or service sales), there is no minimum capital requirement unless you fall under the negative list.
🧭 Business Structures and Other Options
- Utilizing the Special Economic Zones (PEZA): PEZA is a special organization established to attract foreign capital. Certified companies can be 100% foreign-owned and receive significant preferential treatment, including corporate tax exemptions and import tariff exemptions. Many foreign-affiliated companies, including IT-BPO companies, take advantage of this system.
- Stock Corporation: A common corporate structure with multiple shareholders. 100% foreign ownership is also possible.
- One-Person Corporation (OPC): A corporate structure with only one shareholder. It offers advantages such as high mobility and no need for a board of directors. However, if the company is 100% foreign-owned, it must meet the capital requirements (US$200,000 or US$100,000) set forth in the Foreign Investment Law.
🔍 Important Disclaimer and Next Steps
- Detailed Business Details Need to Be Confirmed: While the term “marketing business” is often used broadly, it’s important to consider whether your business falls under the category of advertising (which may be subject to a 30% foreign ownership limit under the negative list), and other restrictions may apply depending on the nature of the data handled.
- Possible Legal Changes: Foreign investment restrictions are subject to change due to legal changes. For the latest information, please check with official institutions such as the Philippine Securities and Exchange Commission (SEC) or the Philippine Board of Investments (BOI), or we strongly recommend consulting a local legal professional.
- Notes for Platform Operators: Operating large-scale platforms like Google or Facebook, or businesses that handle critical infrastructure such as data centers, may be subject to regulations such as those for telecommunications and broadcasting. The 2022 amendment to the Public Service Act allows 100% foreign ownership in telecommunications businesses, but other public utilities (such as electricity transmission and distribution, water supply, and sewerage) remain subject to restrictions. In addition, businesses must comply with other laws and regulations, such as the Data Privacy Act.
💡 Summary
If you’re launching a digital marketing business in the Philippines using Twitter or YouTube, it likely won’t fall under the negative list, and 100% foreign ownership is generally permitted.
However,
- For 100% foreign ownership in the domestic market, a capital requirement (US$200,000 or US$100,000 with certain conditions) must be met.
- If possible, registering as an export company or utilizing a PEZA Special Economic Zone may provide benefits such as exemptions from capital requirements and tax benefits.
- Depending on the nature of your business, it is not possible to completely rule out the possibility that regulations such as those for the advertising industry may apply.
Keeping this in mind, careful advance research and consultation with experts are key to success.
We strongly recommend that you always consult a Philippine legal expert or a consulting firm for the latest information before making a final decision.
(This information is current as of September 14, 2025. The situation may change due to legal changes, etc.)
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