Firm Partners
Val Guzman
Commercial Law
Criminal Law
Family Law & Annulments
Adoption Law
Real Estate Law
Administrative Law
Anti-Graft of Corrupt Practices Act
Alex Acain
Commercial Law
Criminal Law and Cybercrimes
Family Law & Annulments
Transactional Law
Immigration Law
Intellectual Property Law
Aviation Law
Labor Law
Private Wealth
Tax Law
FREQUENTLY ASKED QUESTIONS
F.A.Q.
We would like to inquire if Foreign Banks are allowed to do business in the Philippines?
Yes. Republic Act (RA) 10641, signed into law on July 15, 2014, liberalized the entry of foreign banks in the Philippines. This law grants the Bangko Sentral ng Pilipinas (BSP) Monetary Board the authority to authorize foreign banks to operate under the following modes:
- Acquisition: Foreign banks can acquire up to 100% ownership of an existing Philippine bank.
- Subsidiary Incorporation: They can invest in and own 100% of a newly established Philippine banking subsidiary.
- Branch Establishment: They can set up branches with full banking authority in the Philippines.
Benefits of Foreign Bank Entry
The entry of foreign banks can potentially bring several benefits to the Philippine banking system, including:
- Increased Competition: More competition can lead to better interest rates, a wider variety of financial products, and improved service for Filipino consumers and businesses.
- Enhanced Innovation: Foreign banks can introduce new technologies and financial practices to the Philippine market.
- Greater Access to Capital: Foreign banks may provide additional sources of financing for Philippine businesses.
We’re Here to Help
Guzman Acain LLP can assist you in navigating the process of foreign bank entry in the Philippines. Contact us today to learn more.
We are a foreign company and wanted to setup a back office operations in Philippines, can we incorporate a domestic company?
Setting Up Your Back-Office Support in the Philippines
The Philippines offers a compelling destination for foreign companies to establish back-office operations. To get started, you have two main options for structuring your presence:
1. Domestic Corporation:
- This is the most common and flexible option. You can establish a new Philippine company wholly owned by your foreign company (100% foreign ownership allowed).
- One Person Corporation (OPC): Ideal for a streamlined setup with a single stockholder and director (your foreign company).
- Regular Corporation: Offers more flexibility for multiple stockholders and directors (minimum of five).
2. Branch Office:
- Consider a branch office if you already have a substantial business abroad and want a limited Philippine presence for back-office activities.
- Limitations: Branch offices have stricter regulations and require higher minimum capital compared to a domestic corporation.
Representative Office (Not Recommended):
- While possible, a representative office is not ideal for back-office support. It cannot directly generate income and has limited operational capabilities. This is also tax-exempt as it does not generate any income.
Choosing the Right Option:
The best structure depends on your specific needs. Consider factors like:
- Size and complexity of your back-office operations.
- Desired level of control and flexibility.
- Long-term business goals in the Philippines.
We’re Here to Help
Guzman Acain LLP can assist you with navigating the process of setting up your back-office support in the Philippines. We can help you choose the right structure, complete the necessary registrations, and ensure compliance with local regulations. Contact us today to discuss your specific requirements.
Is there a legal way to avoid the inward remittance requirement of US$200,000.00?
Inward Remittance Requirement: Exceptions for Back-Office Operations
While there is a generally required inward remittance of US$200,000 for foreign companies incorporating in the Philippines, there are exemptions that may apply to your back-office setup:
Export Market Enterprise (EME) Exemption: If your back-office operations qualify as an EME under the Foreign Investment Act, you can be exempt from the inward remittance requirement. EMEs are businesses that primarily export their goods or services and generate foreign currency earnings.
- Requirements for EME qualification: This process typically involves submitting an application with the Securities and Exchange Commission (SEC) demonstrating your company’s export-oriented nature.
- 40% Equity Ownership: If you choose to incorporate a local subsidiary and hold an equity of not more than 40% ownership, you may not be required to meet the US$200,000 inward remittance threshold.
Important Note: Regulations and requirements can change. It’s always advisable to consult with a lawyer dealing with foreign investments to determine the most up-to-date information and confirm if your specific back-office operations qualify for these exemptions.
We’re Here to Help
Guzman Acain LLP can assist you in navigating the legal and regulatory aspects of setting up your back-office in the Philippines. We can help you understand the inward remittance requirements, explore potential exemptions, and ensure compliance with all regulations. Contact us today to discuss your specific situation.
My son was charged for illegal drugs and no bail was recommended. Can we still request for bail?
We understand you’re worried about your son. It’s important to be upfront about the challenges. Non-bailable offenses typically don’t allow bail. However, there might be a limited exception in specific circumstances.
Here’s why it’s important to be realistic:
- High Bar for Bail: There’s a chance to petition the court for bail, but only if the evidence against your son is exceptionally weak. This is a very difficult standard to meet.
What You Can Do:
- Talk to a Criminal Lawyer Immediately: A qualified lawyer specializing in criminal law can assess the charges, evidence, and potential for bail. They can advise you effectively and represent you in court.
- Focus on Evidence: If you pursue bail, the focus will be on demonstrating the weakness of the prosecution’s case.
Contact Us:
Please do not hesitate to contact us at inquiries@guzmanacain.com if you have additional questions.
I am a registered sex offender in the US and was recently barred entry into the Philippines, can you help me?
We understand you’re looking to get your name removed from the immigration blacklist. There are complexities involved, especially for registered sex offenders.
Here’s some important information:
- Limited Authority: The Bureau of Immigration (BI) Commissioner cannot directly lift a blacklist for registered sex offenders. Petitions submitted to the BI may be dismissed.
However, there might still be an option:
- Department of Justice (DOJ) Petition: You might be able to file a formal petition with the Office of the Secretary of the Department of Justice (DOJ) requesting the removal of your name from the blacklist.
Finding More Information:
We recommend reviewing our resources on blacklist removal on our homepage for more details.
Seeking Legal Guidance:
Given the complexity of the situation, consulting with an immigration lawyer experienced in blacklist cases is highly recommended. They can assess your specific circumstances and advise on the best course of action.
Contact Us:
Please do not hesitate to contact us at inquiries@guzmanacain.com if you have additional questions.
Can i file a Petition for Nullity of Marriage though I am working abroad?
Filing for Nullity of Marriage While Working Abroad
We understand you might be considering filing for a nullity of marriage while working abroad. Here’s a breakdown of the process:
Eligibility and Signing the Petition:
- You are eligible to file for a nullity of marriage regardless of your current location.
- You can sign the petition, have it notarized, and obtain an Apostille (if applicable based on the country where the document will be used).
Submitting the Petition:
- You have two options for submitting the petition:
- Embassy/Consulate: Visit the nearest Philippine embassy or consulate and have them notarize the petition. This is preferred if the country you are in is not a member of the Apostille Convention (eg. UAE).
- Local Notary/Apostille: Go to a local notary near your area and have the Petition Apostilled. This is preferred if the country you are in is a member of the Hague Apostille Convention (eg. Singapore, Australia, United States).
- Engage the services of counsel: Engage the services of counsel and they can guide you through the process of filing the Petition.
Remote Testimony:
- Recent Supreme Court circulars allow you and your witnesses to testify remotely via video conferencing, subject to court approval. This eliminates the need to travel back to the Philippines for hearings.
Additional Resources:
- For more details on the nullity of the marriage process, please refer to our related advisory on our homepage.