When setting up a large-scale platform business in the Philippines, such as Google, Facebook, Amazon, or YouTube, or a marketing business utilizing Twitter or YouTube as an SME, 100% foreign investment is possible in some industries. However, the Philippines has a regulation called the ” Foreign Investment Negative List (FINL),” and there are restrictions on the investment ratio in the targeted industries.
The table below summarizes the business lines of interest and the estimated investment ratio.
| Type of Business | Assumed business category and remarks | Maximum foreign investment ratio | Main conditions and points to note |
|---|---|---|---|
| Google, Facebook, Amazon, YouTube, etc. | Large-scale platform operation (if applicable to telecommunications and broadcasting, or if handling critical infrastructure such as data centers) | 40% or less | Telecommunications businesses are allowed 100% foreign investment due to the revision of the Public Service Law, but broadcasting and other public utilities remain subject to regulations. |
| Platform operation business of | |||
| Digital marketing, advertising agency, SNS, etc. using Twitter, YouTube, etc. | Digital marketing, advertising agencies, SNS consulting (generally interpreted as not subject to FINL restrictions) | 100% foreign-owned | For domestic market and 100% foreign capital, paid-in capital of at least US$200,000 is required in principle (can be reduced to US$100,000 under certain conditions). |
| Marketing business (small and medium scale) | |||
| Above marketing business (for export) | Registered as an ” exporting company ” that exports at least 60% of its sales | 100%. | Exporting companies are also exempt from minimum capital requirements unless they fall under the negative list. |
| Businesses in PEZA (special economic zone) | PEZA-accredited business for export (e.g. IT-BPO) | 100% of the total | To receive PEZA preferential measures (e.g., corporate tax exemption), the export ratio and other conditions set by PEZA must be met. |
📊 Basis of Foreign Investment Regulations and Negative List
In the Philippines, the Foreign Investment Negative List (FINL) is regularly updated in accordance with the Foreign Investment Act. This list enumerates industries in which the entry of foreign capital is prohibited or restricted for reasons of national security, public interest, and protection of domestic small and medium enterprises.
- List A: This list includes industries where foreign capital is restricted by the Constitution or by specific laws (e.g., mass media, certain professions, exploitation of natural resources, etc.).
- List B: Industries in which foreign capital is restricted for reasons of security, defense, public health, protection of public order, or protection of small businesses will be listed.
Digital marketing businesses are generally not explicitly listed on this negative list, and in most cases can be established with 100% foreign capital.
⚠️ Capitalization Requirements
As a general rule, a paid-in capital of US$200,000 or more is required for businesses for the domestic market with 100% foreign capital. However, this requirement is reduced to US$100,000 if one of the following conditions is met
- The business utilizes advanced technology approved by the Ministry of Science and Technology (DOST).
- Is approved as a “startup” or “startup support organization” under the Innovative Startup Act.
- Employs at least 15 Filipinos directly (previously 50 or more).
On the other hand, there is no minimum capital requirement for registration as an exporting enterprise (i.e., a company that exports at least 60% of its output or service sales), unless it falls under the negative list.
🧭 Business Forms and Other Options
- Special Economic Zones (PEZA ): PEZA is a special organization established to attract foreign capital, and certified companies are eligible for 100% foreign investment and receive significant incentives such ascorporate tax exemptions andimport duty exemptions.
- Stock Corporation: This is a general form of joint stock company with multiple shareholders. 100% foreign capital is also possible.
- One Person Corporation (OPC ): A corporation with only one shareholder. It has advantages such as high mobility and no need for a board of directors. However, if 100% foreign investment is made, the aforementioned capital requirements of the Foreign Investment Law (US$200,000 or US$100,000) must be met.
🔍 Important Reminders and Next Steps
- Need to confirm the details of the business: Even if it is a “marketing business,” there is no guarantee that the business will fall under the category of advertising (which may be limited to less than 30% foreign investment under the negative list), or may be subject to other regulations depending on the nature of the data to be handled.
- Possible changes in laws: Foreign investment regulations are subject to change as a result of changes in laws. For the latest information, it is strongly recommended to check with official agencies such as the Securities and Exchange Commission (SEC) or the Board of Investments of the Philippines (BOI), or consult with local legal experts.
- Platform Operation Business: Operating a large-scale platform such as Google or Facebook, or handling critical infrastructure such as data centers, may be subject to regulations such as those of telecommunications andbroadcasting businesses, as amended by the Public Service Law of 2022, The 2022 amendment to the Public Service Law allows 100% foreign investment in telecommunications, but other public utilities (e.g., power transmission and distribution, water and sewage) remain regulated. In addition, other laws and regulations , such as the Data Privacy Law, must be complied with.
💡 Summary
If you are setting up a digital marketing business in the Philippines that utilizes Twitter or YouTube, it is highly likely that it will not fall under the negative list, and 100% foreign investment is possible in principle.
However,
- If it is for the domestic market and 100% foreign capital, the capital requirement (US$200,000 or US$100,000 with conditions) must be met,
- If possible, registration as an exporting company or use of a PEZA special economic zone may provide benefits such as exemption from the capital requirement and preferential tax treatment,
- The possibility that regulations may apply to the advertising industry, etc., cannot be completely ruled out, depending on the nature of the business,
The key to success is to carefully conduct preliminary research and consult with experts based on the following factors.
We strongly recommend that you always check with a Philippine legal expert orconsulting firm for the latest information before making a final decision.
(This information is current as of September 14, 2025. The situation may have changed due to legal amendments, etc.)
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