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Investment and Business Guide

for Overseas Filipinos



Title Page
Part I. Investing in the Philippines
1. Investment in Government Securities
2. Establishment of Banks and Other Lending Institutions
3. Development of Tourist Resorts and Other Facilities
4. Purchases of Housing and Condominium Units
5. Development of Housing and Condominium Projects
6. Development of Memorial Parks
7. Investing in the Construction Industry
8. Agribusiness Entreprise
9. Export Marketing
10.Retail of Oil Products
11.Investing in Franchise
12.Establishment of Educational/ Vocational Training Institutes
13.DTI-Recommended Sectors by Region/ Province
14.Investing in other Services
15.Competitiveness Ranking of Philippine Cities in 2003
Part II. Doing Business in the Phippines
16.Securing Business and Other Permits
17.Registration of Partnerships and Corporations
18.Registration of Cooperatives
19.One-Stop Action Center for Investments
20.Omnibus Investment Code of 1987
21.Retail Trade Liberalization Act
22.Land Acquisition and Ownership
23.Conversion of Lands to Industrial and Commercial Use
24.Financing Small and Medium Enterprises
25.Salaries and Wages
26.Insurance and Pension Plans
27.About CFO
Malacanan Palace


The Philippines today is no longer thougt of only in terms of its

geographical boundaries. Our national interests go as far as most parts
of the world because Filipinos live or work in over 160 countries and
territories. Wenow have an overseas Filipino community that is
significant in its size and outreach, as well as its economic importance
to both the Philippines and the countries where they live.

The Filipinos' physical separation from the Philippines has not weakened
in the least the ties that bind them to out Motherland. They contribute
in many important ways to stability at home and maintain an active
interest in the progress of our country.

In turn, our Government has taken steps to provide overseas Filipinos

with fresh avenues to participate in, and help direct, the course of our
nation. The recent passage of the Citizenship Retention and
Reacquisition Act further strengthens the economic ties between
Filipinos overseas and the Motherland, with the restoration of full
economic rights of those who reacquire their Filipino citizenship.

Through this compendium, “Invest in the Philippines”, the government

provides Filipinos overseas with accurate and up to date information
about business and investment opportunities as well as information
essential for doing business in the country. It encourages Filipinos who
have long been living in other countries to take a second look at our
homeland and invest their capital invetments that can both grown
andactively help in nation building.

I thank all of those who contributed to the preparation of this

compendium, and welcome Filipinos overseas who return to the
Philippines where their economic rights and many opportunities for
business and investment lie in store for them.

President of the Philippines

Manila. September 2004.


It is often said that almost one in every ten Filipinos lives or works overseas, an
assertion that reflects the estimated number of 7.76 million overseas Filipinos as of
December 2003. Overseas Filipinos will be found in more than 160 countries and
territories around the world, with their number expected to continue increasing along
with the growth of the Philippine population in years to come.

The migration of our countrymen to other shores which started more than two and a
half centuries ago, has more recently given rise to a transnational community of
Filipinos who continue to maintain their ties with the Philippines. Filipinos overseas
actively communicate, network and transact a host of relationships with those at
home as part of their daily lives, manifesting a thriving community that exists among
Filipinos across the world’s national boundaries.

Other than their growing number, the familiar knowledge about overseas Filipinos is
that usually associated with their foreign currency remittances, whether from
permanent residents settled abroad, or from overseas workers. True, about $58
billion was remitted by overseas Filipinos to the Philippines in the ten-year period
from 1994 to 2003, contributing in no small way to the country’s foreign exchange
reserves, stability of the Philippine peso and improvement in living standards in many
parts of the country. The Banko Sentral ng Pilipinas also estimates that $556 million
in gifts or donations from overseas Filipinos came into the country over the same
ten-year period. In addition, P1.37 billion in grants and donations to needy
beneficiaries in 73 provinces and cities across the country were channeled through
the LINKAPIL (Link for Philippine Development) program of the Commission on
Filipinos Overseas from 1994 to 2003. It is also observed that the most significant
source of remittances and grants in aid to the country over the years has been the
United States, where most overseas Filipinos continue to reside. Other countries
and territories with significant numbers of Filipino immigrants and permanent
residents are Australia, Austria, Canada, Germany, Guam, Japan, New Zealand,
Spain, and the United Kingdom.

What would be a relatively unexplored area lies in mobilizing overseas Filipino capital
for enterprises that could contribute to economic growth in the Philippines. Such
investments also have the potential to contribute more directly to creating
employment, dispersal of economic activity outside of Metropolitan Manila and
accelerated development of agri-business enterprises, all of which are part of the 10
point program of the Government.

The enactment of Republic Act 9225 otherwise known as the Citizenship Retention
and Reacquisition Act in 2003, and the recent approval of its implementing
guidelines has provided a new window of opportunity for many overseas Filipinos to
become involved in economic activities in the Philippines. This is particularly so for
former Filipino citizens who can now reacquire their Filipino citizenship and once
again enjoy full economic rights in the country. Among these are Filipinos who left
starting in the mid 1960s, became naturalized in their host country, and who have
accumulated considerable savings and disposable income on account of their long
permanent stay abroad. They can now become dual citizens, own unlimited real
property, have the right to exploit natural resources in the Philippines, as well as
engage in activities which are restricted to Filipino citizens such as operation of rural
banks, educational institutions or mass media enterprises, among others.
It is in this light that the Commission on Filipinos Overseas has prepared this
compendium, as an initial step to provide accurate information about investing and
doing business in the Philippines, particularly to those reacquiring their Filipino
citizenship. It is an initial step because it will necessarily undergo expansion, and
updating and revision from time to time. It is also a first step because the
Commission is exploring and pursuing other actions with financial institutions that
would lead to the underwriting of an investment trust, tailored for individual overseas
Filipino investors who are more inclined to opt for portfolio type investments.
Meanwhile, overseas Filipinos with investible savings are invited to seriously look into
prospects for investing, and perhaps also retiring back home in the Philippines.

This compendium has initially put together information to help assess prospects for
investing and doing business, particularly in small to medium scale enterprises. It
provides leads about agencies or offices where more specific data could be
obtained. It also gives examples, where available, of specific industries or
enterprises with attractive potentials for the information of prospective investors. Just
as importantly, the compendium provides information about the requirements for
doing business, from the standpoint of a number of relevant government agencies
including local government units.

Like other similar material, the investment compendium does not presume to know
all about the profitability or returns on an investment, nor does it identify or favor
specific enterprises to invest in. This compendium is meant to serve as a source of
general information to help in knowing about where investment and business
potentials exist, leaving it for prospective investors to further examine prospects,
before deciding where their capital should go into.

Manila, Philippines, August 2004




The Philippine Government issues two kinds of government securities (GS):

Treasury Bills and Treasury Bonds. Selling to the buying public originates from the
Bureau of Treasury through a network of licensed dealers. Government securities
are no longer certificated, they are known as “scripless”. GS discount and coupons
are subject to 20% final income tax, which is withheld upon floatation of Treasury
Bills, or upon payment of the coupon for Treasury Bonds. No other tax is imposed
on the secondary market buyer.

Government and government-owned and controlled corporations also offer

shareholding to the public in the form of bonds or securities. Government securities
are unconditional obligations of the State, and backed by its full taxing power,
making them practically free from default.

Treasury Bills and Treasury Bonds

Treasury Bills are government securities which mature in less than a year.
There are three tenors of Treasury Bills: (1) 91 day (2) 182 day and (3) 364 day Bills.
The number of days is based on the universal practice around the world of ensuring
that the bills mature on a business day. They are quoted by their yield rate or by
price based on 100 points per unit. Treasury Bills which mature in less than 91 days
are called Cash Management Bills.

On the other hand, Treasury Bonds are government securities which mature
beyond one year. At present, there are 5 maturities of bonds: (1) 2 year (2) 5 year
(3) 7 year (4) 10 year and (5) 20 year Bonds. These are sold at their face value on
origination and the yield is represented by the coupons, expressed as a percentage
of the face value on a per annum basis, payable semi-annually.

Securities Dealer

Securities dealer is a financial institution organized usually as a corporation

or partnership, whose principal business is to buy and sell securities, whether
registered or exempt from registration, for the dealer's own account or for the
account of client/s. A securities dealer is required to obtain a license from the
Securities and Exchange Commission pursuant to the Revised Securities Act.

Government Securities Eligible Dealer

Government Securities Eligible Dealer (GSED) is a SEC-licensed securities

dealer belonging to a service industry supervised by the Government which has met
the (1) P100M unimpaired capital and surplus account; (2) the statutory rations
prescribed for the industry; and (3) has the infrastructure for an electronic interface
with the Automated Debt Auction Processing System (ADAPS) and the official
Registry of Scripless Securities (ROSS) both of the Bureau of Treasury (BTr) using
Bridge Information Systems (BIS), and acknowledged by the BTr as eligible to
participate in the primary auction of government securities.
Kinds of bonds offered by government and government owned corporations
(as of second quarter of 2004)

Govern- Govern- Govern- Govern- Govern- Corporate

ment ment ment ment ment Bonds
securities securities securities securities securities issued by
issued by issued by issued by issued by issued by Sun Life
the Land Philippine Metrobank China Develop- Prosperity
Bank of the National Bank ment Bank Funds
Philippines Bank of the
Nature Direct Through the Issued by a
of invest- borrowings Gintong private
ment of the Sikap entity for the
National Common purpose of
Treasury Trust Fund, corporate
issued OFWs can expansion
through the now invest
Bangko in GS Marketed as
Sentral ng an
Pilipinas to investment
finance opportunity
public to ensure
expenditures individual
Invest- High yielding Offers Buyer earns Gintong Backed by a
ment attractive from Sikap leading
Benefits Rates are at yields for coupon facilitates international
par or higher your money interest the financial
than other semi- investment services
market annually of OFWs organization
instruments preceded by
DBP invests its
the fund in reputation
high for global
yielding expertise in
long-term the area of
government providing a
securities diverse
for a 2-year range of
holding wealth
period accumulatio
n and
High protection
yielding products
Liquidity- services
is possible
subject to
Risks Risk free; Risk free Risk free Risk free Risk free Risks are
fully offset by
guaranteed high interest
by the rates
Taxation All GS are All GS are Treasury All GS are All GS are
subject to subject to Bills are subject to subject to
20% final 20% final computed 20% final 20% final
withholding withholding on a withholding withholding
tax tax discounted tax tax
Withheld up
front by the Fixed Rate
dealer and is Treasury
thus charged Notes/
in the net Treasury
selling price Bonds
of the computed
investor on a yield-
Investme 1. Treasury 1. Treasury 1. Treasu 1. Treasur 1. Treasur 1. SLP
nt Bills Bills ry Bills y Bills y Bills Bond
Choices • Interest 2. Fixed 2. Treasu 2. Fixed 2. Treasur Fund:
may be Rate ry Notes Rate y Bonds • Provide
discount Treasury 3. Treasu Treasur s capital
ed in Notes ry y Notes preserv
advance Bonds a-tion
or paid and
upon regular
maturity interest
2. Treasury
Bonds 2. SLP
• Interest Balanced
payable Fund:
semi- • Provide
annually s total
or returns
quarterly consisti
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3. SLP
• provides
n for

4. SLP
• Provide
s total
g in a
Mini- 1. P50,000 1. P100,00 P1,000,000 1. P50,000 P5,000
mum 2. P500,00 0 2. P50,000
Place- 0
Contacts Land Bank PNB Treasury Makati Main Head office Sun Life
of the PNB Sales Branch Sen. Gil Prosperity
Philippines Financial Division Paseo de Puyat Ave., Fund
Treasury Center, CCP 6th Floor, Roxas cor. cor. Makati 10th Floor.
Marketing Complex Metrobank Villar St. Ave., Makati Tower II,
Unit, Local Pres. Plaza, Makati City City The
Currency Diosdado P. Makati Tel. Nos.: Enterprise
Department Macapagal 885-5555 Mailing Center,
Land Bank Blvd., Pasay Fax No.: address: 6766 Ayala
Plaza, 1598 City 892-0220 P.O. Box Ave., Makati
MH Del Pilar Tel. Nos.: Binondo 1996 Makati City
St., Malate, (632) 891- Center Central Post Trunklines:
Manila 6040 to 70 Dasmarinas Office, 1200 849-9999,
Trunklines: Website: cor. Juan Makati City 849-9744
450-7011 Luna Sts.
551-2200 E-mail: Binondo, Trunkline:
Direct lines: Manila (632) 818-
405-7268 Tel. Nos.: 9511 to 20;
405-7267 242-5601 to 818-9611 to
405-7266 40 20
Fax Nos.:
241-7058; E-mail:
815-4762 Info@devban

Additionally, the Philippine National Bank offers the Dollar Punla Fund, a US
dollar denominated common trust fund for overseas Filipinos. The fund is invested
in high grade dollar-denominated financial instruments locally and abroad. The fund
calls for a minimum investment of US$1,000.

For more information on the Dollar Punla Fund, please contact:

Philippine National Bank

Corporate Trust Marketing Division
PNB Financial Center
Pres. Diosdado Macapagal Blvd.
Pasay City, Metro Manila
Tel. no. (632) 526-3669 / 526-3684
E-mail address:


The banking industry is known to be a multinational operation requiring a very

large amount of capital and securitization, and a high degree of accountability and
regulation. Hence, small investors do not generally consider banking as a practicable
and feasible business activity.

There is, however, attractive business potential in saving and lending

activities, particularly in areas where banks are not common. Examples are
operation of lending institutions such as cooperatives that require minimum interest
rates. There are more than 60,000 cooperatives in the Philippines at present with an
aggregate asset through paid-up capital of P170 billion as of 2003, contributing P517
billion to the national economy. These are categorized into multi-purpose, credit,
agricultural, and service, among others. The public generally borrow from
cooperatives compared to banks or pawnshops due to small interest rates, minimal
collateral and return of investments through dividends.

In establishing a new banking organization, one must have suitable

shareholders, adequate financial strength, a legal structure in line with its operational
structure, and a management with sufficient expertise and integrity to operate the
bank in a sound and prudent manner. Where the proposed owner or parent
organization is a foreign bank, the prior consent of its home country supervisor
should be obtained.
Procedures in Application for Authority to Establish a Bank

1. Accomplish the Application for Authority to Establish a Bank (Form No. 1) in


2. Submit the following requirements in support of the application:

a. “Agreement to Organize a Bank” (Form No. 2).
b. Accomplished bio-data sheet of each of the incorporators, proposed
directors and officers, and subscribers (Form No. 3).
c. Evidence of Filipino citizenship of each of the incorporators, proposed
directors and officers, and subscribers if he/she claims to be a Filipino
d. Statement of Assets and Liabilities of each of the subscribers
e. Statement of Income and Expense for the last three (3) calendar years
of each of the subscribers
f. Certified photocopies of Income Tax Returns for the last three (3)
calendar years of each of the incorporators, proposed directors and
officers, and subscribers.
g. Clearances from the National Bureau of Investigation (NBI) and Bureau
of Internal Revenue (BIR) of each of the incorporators, proposed
directors and officers, and subscribers.

h. For corporate subscribers:

1. Copy of the Board Resolution authorizing the corporation to invest

in such bank; and designating the person who will represent the
corporation in connection therewith;
2. Copy of the latest Articles of Incorporation and By-Laws;
3. List of directors and principal officers;
4. List of major stockholders, indicating the citizenship and the
number, amount and percentage of the voting and non-voting
shares held by them;
5. A copy of the corporation’s audited financial statements for the last
two (2) years prior to the filing of application;
6. A copy of the corporation’s annual report to the stockholders for the
year immediately preceding the date of filing of application;
7. Certified photocopies of Income Tax Returns for the last two (2)
calendar years; and
8. BIR clearance.

i. For foreign bank subscribers:

1. A copy of the Board Resolution authorizing the bank to invest in a

bank in the Philippines, and designating the person who will represent
the bank in connection therewith;
2. Historical background of the bank, such as date and place of
incorporation, list of domestic and foreign branches, range of banking
services offered, and financial and commercial relationship with the
government, local banks, business entities and residents.
3. A copy each of the bank’s latest Amended Articles of Incorporation
and By-Laws;
4. List of the bank’s directors and their citizenships;
5. List of principal officers of the bank’s head office;
6. List of major stockholders, indicating the citizenship and the number,
amount and percentage of the voting and non-voting shares held by
7. A copy of the bank’s audited financial statements for the last two (2)
years prior to the filing of application;
8. A copy of the bank’s annual report to the stockholders for the year
immediately preceding the date of filing of application; and
9. A certification from the bank’s home country supervisory authority that
the bank’s home country supervisory authority has no objection to the
bank’s investment in a bank in the Philippines, and that adequate
information on the bank and its subsidiaries will be provided to the
Bangko Sentral ng Pilipinas to the extent allowed under existing laws.

j. Detailed Plan of Operation and Economic Justification for Establishing the

k. Projected quarterly financial statements for the first three (3) years of
operations, together with reasonable assumptions.

3. The application shall be considered filed on a first-come, first-served basis,

provided all the required documents are complete and properly

4. Pursuant to Section 26 of R.A. No. 7653, approval of application shall be

subject, among others, to the condition that any director, officer or
stockholder who, together with his related interest, contracts a loan or any
form of financial accommodation from: (1) his bank; or (2) from a bank (a)
which is a subsidiary of a bank holding company of which both his bank and
the lending bank are subsidiaries or (b) in which a controlling proportion of
the shares is owned by the same interest that owns a controlling proportion of
the shares of his bank, in excess of five percent (5%) of the capital and
surplus of the bank, or in the maximum amount permitted by law, whichever
is lower, shall be required by the lending bank to waive the secrecy of his
deposits of whatever nature in all banks in the Philippines.

Any information obtained from an examination of his deposits shall be

held in strict confidence and may be used by the examiners only in
connection with their supervisory and examination responsibility or by the
Bangko Sentral in an appropriate legal action it has initiated involving the
deposit account.

5. Prescribed application form, together with other forms, is available at the

Studies and Chartering Group, Supervisory Reports and Studies Office.

Capital Requirements / Stockholdings

1. Banks to be established shall comply with the required minimum capital

enumerated below or as may be prescribed by the Monetary Board:

Type of Bank Revised

(In Million Pesos)
a. Universal Banks 4,950.00
b. Commercial Banks 2,400.00
c. Thrift Banks
- With head office within Metro Manila 325.00
- With head office outside Metro Manila 52.00
d. Rural Banks
- within Metro Manila 26.00
- Cities of Cebu and Davao 13.00
- In 1st, 2nd & 3rd class cities and 1st class 6.50
- In 4th, 5th & 6th class cities and in 2nd, 3rd & 4th 3.90
class municipalities
- In 5th & 6th class municipalities 2.60

2. At least 25% of the total authorized capital stock shall be subscribed by the
subscribers of the proposed bank, and at least 25% of such subscription shall
be paid-up, provided that in no case shall the paid-up capital be less than the
minimum required capital stated in Item 1 above.

3. The Stockholdings of an individual, family, corporate or business group in any

bank shall be subject to the following limits:

a. Foreign individuals and non-bank corporations may own or control up to

forty percent (40%) of the voting stock of a domestic bank: Provided, That
the aggregate foreign-voting stocks owned by the foreign individuals and
non-bank corporations in a domestic bank shall not exceed forty percent
(40%) of the outstanding voting stock of the bank. The percentage of
foreign-owned voting stock in a bank shall be determined by the
citizenship of the individual stockholders in that bank.
b. A Filipino individual and a domestic non-bank corporation may each own
up to forty percent (40%) of the voting stock of a domestic bank. There
shall be no aggregate ceiling on the ownership by such individuals and
corporations in a domestic bank.
c. The citizenship of the corporation which is a stockholder of a bank shall
follow the citizenship of the controlling stockholders of the corporation,
irrespective of the place of incorporation. For purposes hereof, the term
“controlling stockholders” shall refer to individuals holding more than fifty
percent (50%) of the voting stock of the corporate stockholders of the

4. At least 60% of voting stock of any commercial bank shall be owned by

Filipino citizens. For any thrift bank, at least 40% of its voting stock shall be
owned by Filipino citizens. Subject to Section 4 of Republic Act. No. 7353, all
of the capital stock of any rural bank shall be fully owned and held, directly or
indirectly, by Filipino citizens or corporations, associations or cooperatives
qualified under Philippine laws to own and hold such capital stock.

Requirements for the Issuance of Authority to Operate

1. Within sixty (60) days from receipt of advice of approval by the Monetary
Board/Governor of their application for authority to establish the bank, the
organizers shall:
a. Submit the Articles of Incorporation, Treasurer’s Sworn Statement and
By-Laws in seven (7) copies; and
b. Deposit with any commercial bank (for commercial banks and thrift
banks) and any bank (for rural banks) the initial paid-up capital of the
proposed bank.

2. Within thirty (30) days after the Articles of Incorporation and By-Laws had
been passed upon by the Office of the General Counsel and the
corresponding certificates of Authority to Register had been issued, the
organizers shall effect the filing and registration of said documents with the
Securities and Exchange Commission.

3. Within six (6) months (for commercial banks and thrift banks) and eight (8)
months (for rural banks) from receipt of advice of approval by the Monetary
Board/Governor of their application for authority to establish the bank, the
organizers shall:

a. Complete the construction and furnishing of the bank building, which shall
be equipped with vault and appropriate security devices such as lighting
system, time delay device, tamper-resistant locks, alarm systems, etc.,
and provided with furniture, fixtures, equipment and bank forms;
b. Effect and complete the recruitment and hiring of officers and employees
of the bank;
c. Submit the following documentary requirements at least thirty (30) days
before the scheduled start of operations:

i. Proof of registration of Articles of Incorporation and By-Laws;

ii. Certification of compliance with the conditions of approval duly
signed by the incorporators;
iii. List of principals and junior officers and their respective
designations and salaries;
iv. Bio-data sheet, evidence of citizenship and NBI and BIR
clearances of each of the officers (who have not had the previous
approval of the Monetary Board/Governor) which are needed for
the evaluation of their qualifications as officers;
v. Chart of Organization;
vi. Manual of Operations (for commercial banks and thrift banks);
vii. Plantilla showing the positions with corresponding salaries, the
total of which should more or less conform with the amount of
salaries shown in the submitted projected statement of earnings
and expenses;
viii. Two (2) sets of specimens of principal bank accounting and other
ix. Bond policy on officers and custodial employees;
x. Insurance policy on bank properties required to be insured;
xi. Blueprint of floor layout of bank premises;
xii. Contract of lease on bank’s premises, if the same are to be
xiii. Excerpts of the minutes of the organizational meetings confirming
all organizational and pre-opening transactions relative to activities
undertaken to prepare the bank to operate (such as appointment
of officers, contract of lease, etc.);
xiv. An alphabetical list of stockholders with the number and
percentage of voting stocks owned by them;
xv. A separate list containing the names of persons who own voting
stocks in banks and who are related to each other within the 3rd
degree of consanguinity or affinity;
xvi. Certification by the President that no person who is the spouse or
relative within the 2nd degree of consanguinity or affinity of any
person holding the position of Chairman, President, Executive
Vice-President or any position of equivalent rank, General
Manager, Treasurer, Chief Cashier or Chief Accountant will be
appointed to any of said positions in the bank;
xvii. Appointment of an officer of the proposed bank who shall have
undergone orientation on the reportorial requirements with the
Department of Thrift Banks and Non-Bank Financial Institutions
(DTBNBFI), and a certification by the Manager that he is fully
aware of said reportorial requirements and the respective
deadlines for submission to the BSP (for thrift banks); and
xviii. Other documents/papers which may be required.

d. File with Supervisory Reports and Studies Office a request for ocular
inspection of the bank premises at least thirty (30) days before the
scheduled start of operation.

For more information on the establishment of banks, please contact:

Supervisory Reports and Studies Office

Bangko Sentral ng Pilipinas
Vito Cruz cor. Mabini St., Malate, Manila
Tel. No.: (632) 524-7011 local 2766




Tourism for domestic and international travelers maintains its potentials for
further growth and expansion in the Philippines. This is particularly so because of
the natural attributes of the country (such as long stretches of beaches, numerous
islands and ecological preserves) cultural and historical sites of major importance,
the expected growth in regional tourism, as well as population growth in the country.
Investment in tourism facilities includes development of resorts, hotels and homestay
facilities, local and specialty restaurants, catering, picnic excursion sites, convention
and events facilities, native goods/ products and tour and transportation services.
The tourism sector in particular offers potentials for high rates of employment and
job opportunities due to its service and specialty orientation.

The following matrix provides some options for business and investments in
tourism in different provinces in the Philippines:

Area and Description Interest and Contacts and

Cost (as of addresses
May 2004)
Rizal Beach Gubat, Sorsogon Joint venture Pastor Ave., New
576,978 sq.m. for P50 Million Market Site,
• Suited for world class Batangas City
hotel/resort with conference
rooms and water facilities. Tel. No.: (6343)
• Ideal for hiking, camping and 980-6149

Monte Villa Dumansi, Diffun, Quirino Joint venture/ DENR-Diffun,

Park and Resort 11 hectares outright Dumansi, Diffun,
• Surrounded by scenic low- sale/lease for Quirino
lying hills and caves and P15 M
other natural attractions
• Offers facilities such as big
swimming pool with built-in
kids pool, picnic cottages,
function halls for
training/conferences and
children plaza

Lourdes Brgy. Rizal, Guagua, Pampanga Joint venture 9 Nightingale St.,

Brushwood 7.9 hectares for P54.23M Zabarte
Resort and • 30 different amenities of Subdivision,
Convention international standards Novaliches,
Center • pre-school house and a Quezon City
mini-hotel Tel. Nos.: (632)
• underground power, 936-9103; 939-68-
communication and drainage 29
system Fax No.: (632)
Sabang Beach Brgy. Bacungan, Puerto Joint venture 35 Malvar St.,
Princesa City, Palawan Puerto Princesa
72,485 sq. meter Cost is City, Palawan
• white sand beach with an negotiable Tel. No.: (063)
abundance of coconut trees 816-6666
• situated in a large cove and
near the Puerto Princesa
Subterranean River National
Simpocan Simpocan, Puerto Princesa City For sale for DENR-CENRO
Beach Property 15.57 hectares P250/sq.m. Peneyra Rd., San
• approximately 1, 042 meters Pedro, Puerto
beach front Princesa City,
• fully planted with coconut, Palawan
cashew and other fruit trees Tel. No.: (048)
• ideal for resort, beach side 433-7321 / 2414
subdivision, mountaineering
with the virgin forest of Mt.

Beach Resort Sitio Talaudiong, Bacungan, Outright sale 40 Libis Road,

Property Puerto Princesa City, Palawan Brgy. San Pedro,
(Rocamora's) 2.5 hectares and 3.5 hectares Cost is Puerto Princesa
• lot with beach front of negotiable City, Palawan
whitish-pinkish colored sand Telefax No. (048)
• site is near the proposed 433-7125
Puerto Princesa Forest Park
and Nagtabon Beach

Napsan Beach Napsan, Puerto Princesa City For sale for The Palawan
Resort 4.5 hectares P150/sq.m. Bank, 167 Rizal
• near the national highway Ave., Puerto
• 500 meters of beach front, Princesa City,
with wild flora and fauna and Palawan
with mild and tropical Tel. No.: (048)
weather 433-2489 / 2589
• highly suitable for resort

San Rafael San Rafael, Tanabag, Puerto For sale for The Palawan
Beach Resort Princesa City P250/sq.m. Bank, 167 Rizal
136,704 sq.m. Ave., Puerto
• long flat beach front and Princesa City,
unpopulated Palawan
Tel. No.: (048)
433-2489 / 2589
Nagtabon Nagtabon, Puerto Princesa City Joint venture c/o Puerto
Mountain 22,000 sq.m. for P1M Pension, 35 Malvar
Resort • mountain resort with St., Puerto
clubhouse and swimming Princesa City,
pool Palawan
• restaurant, aircon rooms and Tel. No.: (063)
conference hall 816-6666
Samal Island Cogon Talikud Island, Kaputian For sale/lease 2631 Rockefeller
Property District, Samal Island St., Sison
(Sison's) a. 22.12 hectares For sale: Mansion, Makati
b. 7.54 hectares a. P44,245, City
c. 4.49 hectares 200 Tel. No.: (632)
b. P22,603,20 843-4463 / 889-
• The island garden of Samal 0 2397 / 843-6311 /
is one of the country's c. P8,987, 812-8911
flagship project areas for 200
tourism in Mindanao
• White and pristine beaches For lease:
excellent for scuba diving a. P184, 355
and snorkeling b. P94, 180
• Marine and fish sanctuaries c. P37,
and rare coral gardens 466.66
• Mountain resorts, waterfalls,
unique flora and fauna are
among the island's best

Siargao Beach Brgy. Malinao, Gen. Luna, For sale Brgy. 1, Poblacion
Property Siargao Php500/sq. m. Hospital Road,
(Boncaro's) 16,788 sq. m. Siargao, Surigao
• 40-nautical miles from del Norte
Surigao City and 16
kilometers away from the
municipality of Dapa, the
entry point to the island
• includes waterfalls, caves,
mountains, lagoon, beaches
and rich marine life
• ideal for beach resort

Sharifa 7 and Siasi Lapak Island, Jolo, Sulu Joint venture 424 Sta. Teresita
Regina Resort 32.6 hectares US$300M St. cor. G. Tuazon
• accessible by plane and St., Sampaloc,
superferry Manila
• ideal location for an Tel. No.: (632)
integrated resort complex 749-4863 / 714-
due to its proximity with the 3421
rapidly growing economies
of Southeast Asia
• tourist attractions like: caves,
wildlife, white sand beach,
mountain, abundant flora
and fauna, lagoons and
Camiguin Barangay Agoho, Mambajao, For sale Camiguin Seaside
Seaside Lodge, Camiguin Lodge, Inc.
Inc. 27,692 sq.m. Cost is Agoho, Mambajao,
• fine gray sand and water is negotiable Camiguin Province
ideal for swimming and Tel. No.: (088)
snorkeling 387-9031
• includes 16 private cottages,
16-room dormitory, a
canteen and a social hall
• 3 pump boats

Beach Property Panghiawan, Catarman, For sale for Llacuna St.,

(Daminar's) Camiguin P3,193,750 Umyco, Mambajao
9,125 sq.m.
• property is ideal for beach
resort development
• water is ideal for swimming
and snorkeling

Development of Brgy. Pangubatan, Samal Outright sale Legal

a Beach Resort Island, Davao del Norte at P250/sq.m. Management
(Dalhog's) 328,261 sq.m. Department,
• classified as totally raw land Open to joint ALSONS
property with a 1.5 kilometer ventures Properties
shoreline Tel. No.: (082)
• abundance of marine life Open to 222-3177
• lagoons, coves and coral negotiations
formations add to the area's
natural beauty

Lake Mainit Brgy. San Roque, Kitcharao, For sale or DOT-CARAGA

Floating Agusan del Norte lease for Telefax No.: (085)
Restaurant and • an hour ride from the P3,735,682.13 341-6371
Cottages region's center of trade and
commerce, Butuan City
• situated in one of the
country's cleanest inland
bodies of water
• diverse flora and fauna

Development of Brgy. Pangubatan, San For joint c/o Lanang

Resort Complex Remegion, Samal Island venture or sale Country Club, J.
(Samal Island) 30 hectares P. Laurel Ave.,
Lanang, 8000
Davao City
Tel. No.: (082)
Fax No.: (082)
Development of Brgy. Dao Dauis, Panglao For joint Jimbart Land
Jimbart Tourism Island, Bohol venture /lease Ventures
Economic Zone 49.9 hectares for P300/sq. Bolod, Panglao,
• strategically located within m. Bohol c/o Bohol
the Panglao Island Tourism Investment
State (PITE) municipalities Promotion Center,
and is about a 20 minute GF Governor's
drive from the capital Mansion, CPG
Tagbilaran Ave., Tagbilaran
• 600 meters in length of City
rocky cliff with beach below Tel. No.: (6338)
• suited for integrated resort 411-4559
complex and a single resort Email:
Web page:
Henry's Country Lot I-B-III-B Brgy. Masile, For sale for Cell Phone No.:
Barns Resort Bagong Kalsada, Calamba, P300M (0918) 584-6315
and Hotel Laguna Tel. No.: (632)
10,000 sq.m. 563-8750
• about 45 minutes from
Makati Business District
• 3-storey hotel building, 10 2-
storey family cottages, 1 3-
storey private villa, a 2-
storey conference building, a
chapel, a restaurant, 15-
picnic huts, 12-hot spring
swimming pools, 24-barrel
baths, 20 basin baths as well
as lagoon for fishing and
• Includes indoor games such
as billiards, dart and table
• Adequate parking space

Processing Guide for Accreditation of Tour Operators

1. Application form duly accomplished and notarized

2. Mayor's permit and/or Municipal license with official receipts

3. If corporation or partnership, copy of Articles of Incorporation and its By-laws and

Business Name Certificate, if applicable. If single proprietorship, submit Business
Name Certificate.

4. Resolution of the Board of Directors of the Corporation, association or other

entities authorizing the filing of the application and designating the person
authorized to sign and act for and in its behalf and transact business with the
Department. If single proprietorship or partnership, a letter of authority from the

5. List of all officials and employees with their respective positions, nationalities and
home addresses, certified by the general manager and notarized. Separate list
for main and branches, if any. In case of new agency, bio-data of at least two
permanent staff with at least two years experience in tour operations.

6. For new general manager, application for permit to work and documents to prove
a minimum of three years managerial experience in travel and tour agency
operations. In the absence thereof, proof that she/he is a graduate of Bachelor
of Science in Tourism or has successfully completed a travel agency
management course or a tour operator's course.
7. List of tour guides, travel representatives, consultants, sales agents or persons
who are regularly engaged in soliciting and booking of passengers with their
nationalities and home addresses.

8. For alien personnel, valid busy from the Bureau of Immigration (ICR for native
born/resident aliens and visa for prearranged employees) and permit from the
Department of Labor and Employment (Alien Employment Registration
Certificate for resident aliens and Alien Employment Permit for non-resident
aliens). Submit papers for resident aliens only once unless there are

9. Proof of inbound/local tour operation and/or foreign exchange earning receipts

from local and inbound tours (official receipts-those accredited only by the DOT,
i.e. hotels/resorts bookings).

10. Audited Financial Statements and Income Tax Return for the preceding year.

11. Summary of sales report for the preceding year.

12. Tour packages with name of tour guides, hotels, resorts, transport operators,
restaurants, entertainment establishments and tariff rates (those accredited only
by DOT).

13. In case of new tour operator, proof of compliance with the P500,000.00 working
capital requirement. (Original Bank Certification)

14. Notarized contract of lease of office space or a sworn statement by the lessor
that the agency is a lessee thereof including branches, if any. (Not applicable if
renewal unless there is a change in address.)

15. For tour operators with branches, affidavit executed by the general manager of
the main office acknowledging the existence of said branch office; assuming full
responsibility for its operations, and certifying that it is not managed nor operated
by the persons/entities other than the duly accredited employees and officers of
the main office.

16. Photocopy of surety bond policy submitted to the Local Government Unit.

17. Deeds of sale/assignment of shares, if applicable.

18. Payment of the following fees: (If check, pay to the order of the Department of

Accreditation Fee
P1, 400.00
Branch Office
P1, 400.00
ID Fee (Optional)
P 30.00
P 100.00

For more information on the accreditation of tour operators, please contact:

Department of Tourism
DOT Building, T.M. Kalaw, Rizal Park, Manila
Tel. Nos.: (632) 522-7057 / 4561 / 523-8411 / 525-3029 / 524-7734
Fax. No.: (632) 521-8113



The growing population in urban and suburban areas in the Philippines has
increased demand for housing, as well as pushed up in the long term prices of single
unit and condominium residential facilities. Increase in property values as a result of
demand offers excellent possibilities for secure investment in residential subdivisions
and condominium units, depending on area preferences. While development of
single unit residential subdivision tend to move away from urban centers,
condominium units are usually built closer to commercial areas and place of work.

Examples of land and property developers are Ayala Land, Bonifacio Land,
Empire East, Robinson Land and Rockwell.

The purchase of real property in the Philippines of overseas Filipinos may, in

addition to usual in-house financing, be made possible through the Philippine Home
Loan Program of the Philippine National Bank. The program also finances
construction of a residential home or property owned by the borrower, improvement
of an existing house, or refinancing of a home mortgage loan.

Documentary Requirements for Buyers of Condominiums

General Requirements

1. Reservation Application/ Late Reservation Application

2. Letter of Intent
3. Deed of Assignment of Rights
4. Contract to Sell/Deed of Conditional Sale
5. Payment Schedule
6. Post Dated Checks
7. Floor Plan/Lot Plan
8. Unit Plan
9. Subdivision Plan
10. Parking Plan
11. Specimen Signature Card/s
12. Information Sheet

Specific Requirements
A. For Individual Buyers

1. Income Tax Returns (2 years)

2. Tax Identification Number
3. Community Tax Certificate
4. Audited Financial Statements (2 years)
5. DTI Registration of Business Name (if applicable)
6. Bank Inquiry Authorization (1 for every bank reference)
7. Special Power of Attorney (if applicable)
8. One (1) valid ID with picture

B. For Partnership/ Corporate Buyers

1. Income Tax Returns (for last 2 years)

2. Tax Identification Number (Company and Authorized signatory/ies)
3. Community Tax Certificate (Company & authorized signatory/ies)
4. SEC Registration
5. DTI Registration of Business Name
6. Articles of Incorporation/ Partnership & By-Laws
7. Board Resolution / Secretary’s Certificate Authorizing the purchase &
authorized signatory/ies
8. Company Profile/Annual Report
9. Financial Statements (In-House & Audited for last 2 years)
10. Bank Inquiry Authorization (1 form for every bank reference)
11. List of Major Suppliers and Clients

C. Bank Loan Requirements

1. Completely filled-out bank loan application form

2. ID photo (2x2) for both spouses
3. Certificate of Employment for both spouses
4. Bank statements (for the last 6 months)
5. Photocopy of Marriage Contract
6. Proof of non-salary income such as Certificates of Deposits
7. Stocks/Bonds Certificate, lease contract showing terms & monthly
8. Any proof of Billing Receipt
9. Business Background/Profile

D. Requirements for Foreign Buyers

1. Photocopy of Passport (original copy of presentation)

2. Working Visa or Special Investor Residence Visa

Additional Requirement for Overseas Workers

1. Contract of Employment/Certificate of Employment (with validation by the

Philippine Consulate)
2. History of Employment/ Latest Crew Contract, if applicant is a Seaman
3. Photocopy of Passport


1. Applicant selects the unit he/she would like to purchase.

2. Applicant pays the reservation deposit.
3. Applicant submits required documents.
4. The condominium developer prepares the evaluation report not later than
14 days from receipt of application.
5. Evaluation report is then submitted for approval of the Business
Development Head.
6. Once the application is approved, the applicant selects a payment
7. Upon receipt of the payment the buyer and the condominium developer
signs a Contract of Sale.

Available Condominium Projects as of the 2nd quarter, 2004

Unit Area and Description Investment Contacts

2301 Civic Ÿ 30-389 sq.m. Ÿ P1.7M- Filinvest Alabang, Inc.,
Place, Ÿ Ideal for an office or 24.3M/ Filinvest Corporate City,
Filinvest home office Ÿ Cash or Alabang, Muntinlupa City
Corporate City, Ÿ Units can be combined Deferred
Alabang to accommodate bigger Cash Tel. No.: (02) 850-2301
space requirements payment Fax No.: (02) 807-6907
Ÿ Situated in front of the basis E-mail:
City Center, a 28 hectare Ÿ Reservation 2301@filinvestcorpcity.
area zoned for Fee of com
commercial/retail P25K Website:
developments www.filinvestcorpcity.c
Ÿ Near the sites of the om
Asian Hospital, Festival
Supermall, Northgate
Cyberzone and prime
condominiums and office

West Parc Ÿ 31-37 sq.m. studio units Ÿ 1.8M-5.6M Filinvest Alabang, Inc.,
Condominiums, or 69-73 sq.m. 2- Ÿ Reservation Filinvest Corporate City,
Filinvest bedroom units Fee of Alabang, Muntinlupa City
Corporate City, Ÿ Situated at the heart of P50K
Alabang Filinvest Corporate City, Tel. No.: (02)850-
Southern Metro Manila’s 0888/809-5425
premier satellite city E-mail:
Ÿ 5-minute away from the
luxuries of the city’s main
commercial hub while
providing the comforts of
the countryside where
greens and fresh air
Ÿ Situated in an area
zoned for
Pioneer Pointe, Ÿ 20.5 sq.m.-148 sq.m. Ÿ P1.0M- Pioneer St. (35 meters
Mandaluyong Ÿ 28-storey residential P9.4M from the corner of
City condominium in the heart Ÿ For as low Reliance), Mandaluyong
of a booming business as P12.0K+ City
metropolis a month, no
Ÿ Malls and shopping hubs lump sump Tel. Nos.: (02) 687-1155/
are practically outside and no 687-1177
your doorstep down E-mail:
Ÿ With an innovative payment sales@pioneer-
concept called “Shared
Development,” one can Website: pioneer-
own his studio or two-
level, 2-bedroom unit at

Vivant Flats, Ÿ 30 sq.m.- 105 sq.m. Ÿ P2.1M- Filinvest Alabang, Inc.,

Filinvest Ÿ a 17-storey residential P5.5M Filinvest Corporate City,
Corporate City, tower located along Ÿ Choose Alabang, Muntinlupa City
Alabang Alabang’s Parkway from a
Avenue, Filinvest range of no Tel. No.: (02) 850-0777/
Corporate City’s down 809-6517 to 22
premium residential payment, Fax No.: (02) 807-6907
block. low monthly E-mail:
Ÿ Combines the modern and
conveniences of condo extended Website:
living within the luxury of payment www.filinvestcorpcity.c
breathing space and a plans om
garden of greens
Ÿ Right at the heart of the
country’s center of
business and leisure

Fifth Avenue Ÿ 33.38 sq. m.-122.7 sq.m. P1.8M-P6.3M Robinsons Properties

Place, Fort Ÿ 33-storey Residential Marketing and
Bonifacio Condominium Flexible Terms Management
Ÿ With Swimming Pool, of payment Corporation
Landscape Garden,
Jogging Path, Gym and
Children’s Playground
One Gateway Ÿ 36 sq.m. – 255.7 sq.m. P1.8M-17.2M Robinsons Properties
Place, Ÿ Rising 28-storey Marketing and
Mandaluyong residential condominium Units available Management
with access to the for as low as Corporation
Robinsons Gateway Mall P22K monthly
Ÿ Sits at the corner of 32/F Robinsons
EDSA and Pioneer Equitable Tower, ADB
Street in the City of Avenue corner Poveda
Mandaluyong that offers Road, Ortigas Center,
studio and 1-Bedroom Pasig City
Units E-mail:
Ÿ Has contemporary
architectural design with
tri-axial plan
Ÿ With Swimming Pool,
Children’s Play Area,
Gym and Multi-Purpose

Two Adriatico Ÿ 36 sq.m.- 270.21 sq.m. P2M-P18.6M Robinsons Properties

Place, Pedro Ÿ Offers a spectacular view Marketing and
Gil, Ermita of the famous sunset of Management
Manila Bay Corporation
Ÿ 38-storey, strategically
located along Adriatico 32/F Robinsons
and Pedro Gil Streets in Equitable Tower, ADB
the lively Malate close to Avenue corner Poveda
government offices, Road, Ortigas Center,
services, hospitals, Pasig City
churches, and E-mail:
educational institutions.
Ÿ Proximity to the city’s
major roadways marks
its unique and practical
central location


The growing demand for different types of residential (as well as commercial)
units has made property development a profitable and attractive venture, although
requiring larger amount of capitalization.
The Housing and Land Use Regulatory Board (HLURB) is the planning,
regulatory and quasi-judicial national government body tasked to regulate land use
and, real estate and housing development.

A registered owner or developer of a parcel of land who wishes to convert

the same into subdivision or a condominium project shall apply for the approval of
the subdivision/condominium plan with the HLURB by filing the following

Application for the Approval of Application for the Approval of

The Subdivision Development Plan the Condominium Plan
A. For Optional Application for 1. Two (2) sets of Condominium
Preliminary Subdivision Development Plan duly signed and sealed by a
Plan licensed architect
2. Two (2) copies of Vicinity Map
1. Two (2) sets of the Site Development 3. Building specifications and
Plan Estimated Cost
2. Vicinity Map 4. Zoning Certificate from HLURB
3. Topographic Plan Regional Office
4. Survey Plan 5. Certified True Copy of DAR
5. Two (2) copies of Certified True Copy Conversion Order
of Title and Current Tax Receipts 6. Certified True Copy of
6. Right to use or deed of sale of right-of- Environmental Clearance
way for access road and other utilities Certificate (ECC) or Certificate of
when applicable Non-Coverage (CNC) duly issued
by the DENR, whichever is
B. For Application for Subdivision applicable
Development Plan 7. Certified true copy of title(s) and
current tax receipt
The following in addition to the above: 8. Right to use or deed of sale of
right-of-way for access road and
1. Subdivision Development Plan other utilities when applicable
2. Civil and Sanitary Works Design 9. Project Study
3. Two (2) copies of water system layout 10. Permit to drill from the National
duly signed and sealed by a licensed Water Resources Board (NWRB)
sanitary engineer or civil engineer or certificate of coverage from
4. Certified True Copy of Tax Declaration concerned local franchise holder
covering the property(ies) subject of 11. List of Names of duly licensed
the application professionals who signed the
5. Certified True Copy of Environmental plans and other similar
Compliance Certificate (ECC) or documents in connection with the
Certificate of Non-coverage (CNC) application
duly issued by the DENR
6. Zoning Certificate from HLURB
Regional Office
7. Certified True Copy of DAR
Conversion Order
8. Two (2) copies of project description
for projects having an area of 1
hectare and above
9. Plans, specifications, bills of materials
and cost estimates duly signed and
sealed by the appropriate licensed
10. Permit to drill from the National Water
Resources Board (NWRB)
11. Traffic Impact Assessment (TIA) for
subdivision projects 30 hectares and
12. List of Names of duly licensed
professionals who signed the plans
and other similar documents in
connection with the application
Application for Registration

The owner or the real estate dealer interested in the sale of lots or units in a
subdivision project or condominium project, respectively, shall register the project
with the Housing and Land Use Regulatory Board (HLURB) by filing the following:

1. Sworn Registration Statement

2. Certified true copy of titles

3. Duly audited balance sheet / Income Tax Return / Sworn Statement of

Assets, whichever is applicable

4. Articles of Incorporation, By-Laws, and latest annual corporate report to


5. Copy of brochure, circular or prospectus for advertisement of the subject


6. Sample copy of the Contract to Sell

7. Certified true copy of the Environmental Compliance Certificate (ECC)/

Certificate of Non-Coverage (CNC), whichever is applicable

8. Zoning Certificate from HLURB Regional Office

9. Certified true copy of DAR conversion order

10. Electrical plan duly signed and sealed by a licensed electrical engineer

11. Permit to operate a deep well and water resistivity and potability test
results from concerned government agencies

Additional Requirements

1. For Condominium Projects

a. Master Deeds with Declaration of Restrictions duly annotated at the back

of title and plans registered with the Register of Deeds

b. Building Permit

2. For Subdivision Projects:

a. 2 copies of verified survey returns

b. Copy of the following documents in case the development permit was

issued by the LGU:

§ Sangguniang Resolution/Ordinance approving the subdivision plan or

Development Permit or its equivalent
§ Proof of compliance to Sec. 18 of RA 7279
§ Approved subdivision development plan
c. Project study

d. Copy of brochures and other forms of advertisements

Application for License to Sell

The owner of the real estate dealer interested in the sale of lots or units in a
subdivision or condominium project shall apply with the HLURB for a License to Sell
by submitting the following documents:

1. Program of development signed and sealed by a licensed engineer or

2. Affidavit of undertaking to perform the following:

a. Segregation of the individual titles for all lots or units within the
b. Submission of proof that titles to the saleable lots or units have been
issued; and
c. Submission of certified true copy of title of the common areas / open

3. Duly accomplished and notarized fact sheet

Steps in Application for Registration and Licensing:

1. Filing of application with the Records Division, order of payment is issued,

payment of 50% for processing fee with the cashier;

2. Records Division forwards application to Director and Head of the Technical

Services for preliminary evaluation and assignment to processor;

3. Processor evaluates application (sends notice of deficiency of requirements if

needed), conducts site inspection (if needed) and prepares draft
decision/action on application, secure clearances for legal, appeals,
monitoring (processing is not resumed unless deficiencies are submitted;

4. Head of the Technical Services reviews and initials action/decision;

5. Regional Director reviews, approves/disapproves application; and

6. Applicant claims decision/action from Records Division after payment of

remaining 50% of processing fees.


A notice to publish in a newspaper of general circulation is issued upon submission

of the following:
Ÿ Registration Statement (stating the name of project and location), corporate
papers (following HLURB prescribed form)
Ÿ Sangguniang Bayan / Panlungsod Resolution or ordinance approving the
development of subdivision project and copy of site development plan
Ÿ Certified true copy of title(s) covering the project

After inspection for determination of remaining cost of development, a notice to post

performance bond/bank guaranty is issued.
Performance Bond

The performance bond required for the issuance of the license to sell may
be in any of the following forms:

1. A surety bond amounting to 20% of the development cost of the

unfinished portion of the approved plan issued by a duly accredited
bonding company; or

2. Real estate mortgage to be executed by the applicant as mortgagor in

favor of the Republic of the Philippines as mortgagee over a property
other than that subject of the application, provided that the value of the
property shall be at least 20% of the total development cost; or

3. Cash bond equivalent to 10% of the development cost of the unfinished

portion of the approved plan.

For more information on the licensing and registration of subdivision and

condominium projects, please contact any of the following:

The HLURB Regional Office, which has jurisdiction over the place where the
subdivision or the condominium is located, or

Rules and Standard Development Office

2/F HLURB Building
Kalayaan Ave., cor. Mayaman St.,
Diliman, Quezon City
Tel. No.: (632) 924-3386
Fax No.: (632) 927-2724



The development of memorial parks offers excellent business potentials,

particularly in utilizing areas that are not suitable to agricultural, commercial or other
productive uses. The demand for plots in modern memorial parks has also grown
alongside that of other pre-need products and services, and is foreseen to continue
along this trend.

The Housing and Land Use Regulatory Board (HLURB) is the national
government agency that regulates the development of memorial parks. The Rules
and Regulations for Memorial Park/Cemetery approved per HLURB Board
Resolution No. 681 Series of 2000 on 21 September 2000 have prescribed the
following guidelines.

Basic Design Standards for Memorial Parks/Cemeteries

Memorial parks or cemeteries must conform with the land use plan or zoning
ordinance of the locality having jurisdiction over the project site, the pertinent
provisions of the Sanitation Code, Water Code, National Building Code of the
Philippines and its referral codes, like the Accessibility Law, Plumbing Code,
Electrical Code, and other applicable laws and rules affecting related services and
the following design standards:

Site Criteria

Cemeteries or memorial parks shall be located on the periphery of the town

center or in areas sparsely inhabited and where little hazard to human life or health
could result.

Undue proliferation of memorial parks/cemeteries in any municipality/city

shall not be allowed. The number of cemeteries/memorial parks to be allowed within
each municipality/city shall be based on the needs or death rate in the municipality
and future catchment areas as well.


In municipalities/cities with approved comprehensive land use plan or zoning

ordinance, memorial parks/cemeteries shall be located in areas zoned for cemetery
purposes, otherwise, project site shall only be allowed in:

1. Areas zoned as open space and not within the Strategic Agriculture and
Fisheries Development Zones (SAFDZ) as certified by the Department of
Agriculture (DA).

2. Areas zoned as agricultural, provided that the site is not tenanted and not
covered by operation land transfer and not considered as prime
agricultural land and located in areas covered by the Comprehensive
Agrarian Reform Program (CARP) as certified by the Department of
Agriculture (DA); and not irrigated as certified by the National Irrigation
Administration (NIA).

In cities/municipalities without an approved comprehensive land use plan or

zoning ordinance, the memorial park/cemetery shall be allowed in the following,
provided that the aforementioned restrictions are met:

1. An area adjacent to an existing cemetery/memorial park.

2. An area where the dominant land use within one hundred (100) meters
from the periphery of the proposed memorial park/ cemetery is neither
residential, commercial, industrial or institutional.
3. An area deemed by the Board as appropriate and in accordance with the
principles of Planned Unit Development (PUD). PUD is defined as one
concept of real estate development and/or land development scheme
which aims to optimize the use of the land through adaptive/innovative
site lay-out, provision of generous open space and complementarity of

Physical Suitability

The memorial park/cemetery must be located on ground where the water

table is not higher than four (?) and 4.50 meters below the ground surface as
certified by the National Water Resources Board (NWRB) and shall not be allowed in
environmentally critical areas as defined in Proclamation No. 2146.


The site must be served by a road with a minimum width or right-of-way of

not less than 8 meters. (The right-of-way of major roads shall be increased as
project size increases)

All relevant provisions of BP Blg. 344 e.g. dropped curves, curb cut-outs, etc.
shall be observed.

Design and Planning Considerations

Cemetery/Memorial Parks must achieve flexibility in design and orderly lay-

out to respond to the various spatial requirements of burial ceremonies, economic
land use and environmental control. Suitable areas must also be allocated for the
planting of trees, shrubs, plants and for other functional and decorative elements
such as monuments, sculptures, fountains and benches.

Land Allocation

There shall be no fixed ratio for saleable area, provided that the required
areas for roads, pathways, parking and other facilities and amenities are reserved.
Likewise, at least 50% of the saleable area shall be utilized for underground
interment in order to retain park-like character of the project.

Development of Memorial Parks

Every registered owner or developer of a parcel of land who wishes to

convert the same into a memorial park/cemetery shall apply for the approval of the
memorial park/cemetery plan with the HLURB or city/municipality concerned by filing
the following requirements:

Application for the Approval of the Application for the Approval of Final
Preliminary Memorial Park Plan Memorial Park Plan
1. Site Development Plan/Scheme 1. Final Memorial Park/Cemetery Plan
2. Vicinity map/location map duly signed 2. Engineering Plans duly signed and
by a geodetic engineer sealed by a licensed civil engineer
3. Topographic Plan 3. Storm drainage duly signed and
4. Zoning Certification issued by the sealed by a licensed sanitary
HLURB or city/municipality engineer
concerned 4. Centralized or combined storm and
5. Certified True Copy (CTC) of sewer system duly signed and sealed
Environmental Compliance by a licensed sanitary engineer
Certificate (ECC) or Certificate of 5. Site grading plan duly signed and
Non-Coverage (CNC) duly issued by sealed by a licensed civil engineer
the DENR 6. Electrical plan and specifications
6. CTC of conversion order or 7. Landscaping plan
exemption clearance from the 8. Summary of Project Study indicating
Department of Agrarian Reform market, source/s of fund, statement
7. CTC of Title and Survey Plan of income, cash flow and work
9. CTC of title or other evidence of
ownership or intent to sell and
authority to develop signed by the
owner, Tax Declaration and current
real estate tax receipt
10. Clearances/Permits/Certifications
from other agencies applicable to the
11. Joint affidavit of owner/developer and
licensed environmental planner that
the memorial park/cemetery plan
conforms to the standards and
requirements of HLURB rules
12. List of names of duly licensed
professional who signed the plans
and other similar documents in
connection with the application filed
with HLURB

Approval of the preliminary memorial park/cemetery plan shall be valid only

for a period of 180 days from date of approval. A revalidation can be availed of only
once after said period.

After the preliminary approval of the Memorial Park/Cemetery, the owner or

developer shall proceed with the preparation and submission of documents for the
approval of final memorial park/cemetery plan.

If the application for the project is physically feasible and the plan complies
with the zoning ordinance of the city or municipality where it is situated, the project
shall be issued a development permit issued by the HLURB or the city/municipality
concerned upon payment of the prescribed processing fee.

Registration and Licensing of Memorial Park/Cemetery Projects for the

Lease/Sale of the Plots

When the proponent has at least accomplished 20% of the total

development and is interested in the perpetual lease/sale of plots in a memorial
park/cemetery project, he shall register the project with the HLURB by filing in
duplicate a sworn registration statement containing the following information:

1. Name of the owner or dealer;

2. Name, location and area of the project;

3. The location of the dealer’s and owner’s principal business office;

4. The names and addresses of all directors and officers of the business firm if
the owner and/or dealer is a corporation, association, trust or other entity,
and all the partners, if it is a partnership;

5. The general character of the business actually transacted by the owner; and

6. A statement of the capitalization of the owner, including the authorized and

outstanding capital stock and the proportion thereof which is paid up.

The following documents shall be attached to the registration statements:

1. A copy of the Transfer Certificate of Title in the name of the applicant if none
was submitted in the application for plan approval;

2. Article of Incorporation or Articles of Partnership of Association

3. Affidavit stating that the property is free from liens and encumbrances

4. A copy of contract from to be used in the lease/sale of lots

5. A copy of any circular, prospectus, brochure, advertisement, letter of

communication to be used for the public offering of the memorial
park/cemetery plots.

Steps in Application for Registration and Licensing:

c. Filing of application with the Records Division, order of payment is issued,

payment of 50% for processing fee with the cashier;

d. Records Division forwards application to director and Head of the Technical

Services for preliminary evaluation and assignment to processor;

e. Processor evaluates application (sends notice of deficiency of requirements if

needed), conducts site inspection (if needed) and prepares draft
decision/action on application, secure clearances for legals, appeals,
monitoring (processing is not resumed unless deficiencies are submitted;

f. Head of the Technical Services reviews and initials action/decision;

g. Regional Director reviews, approves/disapproves application;

h. Applicant claims decision/action from Records Division after payment of

remaining 50% of processing fees.

Publication of the Notice of the Filing of the Registration Statement

The HLURB, at the expense of the applicant, shall cause the publication of
the registration statement for the lease/sale of the project in two newspapers of
general circulation (one published in English and another in Filipino), upon finding
that the project may be registered in accordance with the rules.

Application for License to Lease/Sell

No owner or dealer shall lease/sell any disposable plot in the registered

project without a license to lease/sell issued by the HLURB. Upon proper application,
submission of the required work program, performance bond and payment of the
prescribed license fee, the HLURB shall issue the license to lease/sell the plots in
the project.

Performance Bond

The performance bond required for the issuance of the license to sell may
be in any of the following forms:

1. A surety bond amounting to 20% of the development cost of the unfinished

portion of the approved plan issued by a duly accredited bonding company;

2. Real estate mortgage to be executed by the applicant as mortgagor in favor

of the Republic of the Philippines as mortgagee over a property other than
that subject of the application, provided that the value of the property shall be
at least 20% of the unfinished portion of the approved plan; or

3. Cash bond equivalent to 50% of the development cost of the unfinished

portion of the approved plan.

For more information on the licensing and registration of memorial parks, please
contact any of the following:

The HLURB Regional Office, which has jurisdiction over the place where the
project is located, or

Rules and Standard Development Office

Housing and Land Use Regulatory Board
2/F HLURB Building
Kalayaan Ave., cor. Mayaman St.
Diliman, Quezon City
Tel. No.: (632) 924-3386
Fax No.: (632) 927-2724



The construction industry performance during the first quarter of 2004 has
been cited as “the strongest since 2001”. This is fueled by strong economic growth,
particularly in the real Gross Domestic Product, remarkable performance of the
agricultural sector, continuing strength of the service sector, and expansion in the
industry sector.

Employment levels in the construction industry rose by 2.6% in April 2004

with a total of 1.79 million workers compared to the same period last year,
generating about 46,000 more jobs as housing construction increased.

Construction output registered an improved growth of 6.5% for the first

quarter of 2004. Construction investment also grew 3.7% during the first three
months of the year. Private construction also increased as demand for housing and
trade establishments increased. Among the financial reforms that continue to
influence the construction sector, specifically in housing, are: the extension of the
Bangko Sentral ng Pilipinas rediscounting facility to socialized and low cost housing,
among others; issuance of bonds by the Home Guaranty Corporation to support
guarantee operations; increase in ceilings for socialized and low-cost housing to
keep pace with the general escalation of prices; and the reduction of interest rates
by the Home Development Mutual Fund (HDMF). Public construction, on the other
hand, accelerated due to increased government expenditures in capital outlay as
pump-priming activities in the countryside expanded.

As of June 2004, a total of 5,913 licenses were issued to contractors for

2003-2004. Small contractors comprised the biggest percentage of the total
contracting population with a 50.9% share, followed by medium-sized contractors
(A&B) which accounted for 40.8% and large contractors (AAA & AA) with 8.3%.
General Engineering (GE) contractors also increased, exhibiting a 58.5% share.
General Building (GB) contractors consist of 32.7%, trade contractors constituted
3.1%, while the remaining 5.6% are specialty contractors.

The Philippine Contractors Accreditation Board (PCAB), has likewise, issued

special licenses to 31 foreign contractors, all categorized as AAA contractors.

Construction Prospects
Due to improved investment climate and increase in housing construction,
the National Economic and Development Authority (NEDA) forecasts that the growth
in the construction industry will be between 5.0% to 5.8% in 2004.

The housing backlog in 2001 rose to 2.1 million units of shelter. To address
the backlog, about 500,000 housing units are targeted annually for the next 4 years.

Pipeline projects under the Build-Operate-Transfer and other schemes are

the following:

Name of Project Estimated Project Schemes

NAIA Expressway Project (Package I) P131.3M BTO
Manila North Harbor Modernization P60.0M BOT
MIAA Cargo Terminal Project To be determined BOT
LRT Line No. 4 (MRT 4) P1B BT & BOO
LRT Line 1 Extension P842.48M -
Northern Intermodal Transport Terminal P17.3M BOO
P1.428M BTO
MRT Line 7
MRT 8 East Rail Line Project (Phase 1)
Property Development
General Santos Integrated Transport Terminal P2.7M BOO
& Commercial Complex
SSS Corporate Center
P141.6M BOT
Environment & Power
Metropolitan Waterworks Sewerage System
Treated Bulk Water Supply
Davao del Norte Integrated Water Resources
Development Project P70M BOT
Upgrading & Rehabilitation of Olongapo City’s
Electric Power Distribution System
P6.4M Concession
Metro Cebu Water District (MCWD) Treated
Bulk Water Supply

The Construction Industry Authority of the Philippines (CIAP)

The Construction Industry Authority of the Philippines (CIAP), an attached

agency of the Department of Trade and Industry, was created by virtue of PD 1746
on 28 November 1980, to promote, accelerate and regulate the development of the
construction industry in conformity with national goals. It coordinates with
government agencies that conduct business with or exercise regulatory powers over
the construction industry. It acts as an umbrella agency over the following units:
1. Philippine Contractors Accreditation Board (PCAB)

The PCAB is mandated to issue, limit, suspend and revoke contractor’s

licenses, as well as upgrade the classification of licensed contractors that
have the requisites of technical personnel, equipment and financial

2. Philippine Overseas Construction Board (POCB)

The POCB develops, promotes and regulates the activities of the overseas
construction industry. It aims to implement the state policy of actively
encouraging construction activities that lead to the export of Filipino goods
and services, particularly, technical and managerial expertise.

3. Philippine Domestic Corporation Board (PDCB)

The PDCB formulates, recommends and implements policies, guidelines,

plans and programs for efficient implementation of public and private
construction in the country.

4. Construction Industry Arbitration Commission (CIAC)

The CIAC was established under the Executive Order 1008 as a quasi-
judicial body tasked to provide the necessary facilities for the speedy and
equitable settlement of construction disputes.

Contractor’s Licensing

In order to promote the safety and protect the interests of the general public
from risks of dealing with ill-prepared, unreliable and incompetent contractors, the
CIAP maintains and implements a licensing system through the PCAB. Republic Act
No. 4566 or the Contractor’s Licensing Law requires all persons/entities engaged in
the construction contracting business in the country to be licensed to undertake such

Documentary Requirements for New License Application

The following pertinent documents and information are to be submitted in

support of said application:

A. Legal
1. Duly accomplished PCAB Form Nos. 101a and 102
2. Certified True Copy of BTRCP Certificate of Registration with pertinent
BTRCP Form No. 16 (for sole proprietorship) or Certified True Copy of SEC
Certificate of Registration and Articles of Partnership/Incorporation and By-
Laws and subsequent amendments thereto showing construction as a
primary purpose
3. Authorized Managing Officer (AMO) Affidavit (PCAB Form No. 13) with a
passport size picture of AMO
4. Original NBI clearance of Filipino AMO

B. Financial

1. Audited Financial Statements dated within the last six (6) months immediately
preceding the filing of application signed on each and every page by
independent CPA and supported by the following documents, if applicable:

• For old companies, copy of the quarterly or annual Income Tax Return
certified true by the BIR, covering the income reported in the Audited
Income Statement submitted for the quarter or taxable year immediately
preceding the filing of application, whichever is applicable;
• Original copy of Bank Certification/Bank statement of account certified by
Bank Manager of cash deposits as of the Balance Sheet date and
Authorization to Depository Bank (PCAB Form No. 105);
• List of land and building/s owned by the company and registered in its
name (PCAB Form No. 106a) and Certified true copy of TCT including
back page;
• List of Construction and/or Transportation/Delivery Vehicles/Equipment/
Machineries/Plants owned by the company and registered in its name
(PCAB Form No. 106b);
• Certified true copy of the LTO Certificate of Registration and current
Official Receipt of Registration of registrable Construction and/or
Transportation / Delivery vehicles/Equipment reported;
• Certified true copy of Deed of Sale for non-registrable construction
• Authorization to BIR and other agencies (PCAB Form No. 105a)

C. Technical

1. List of Sustaining Technical Employees – STE (PCAB Form No. 106c)

supported by the following documents for each STE:

• STE Affidavit/s (PCAB Form No. 107) with a passport size picture/s of the
nominated STE/s;
• Certified true copy by of valid PRC ID of STE as licensed professional or
original Certification of Good Standing from PRC;
• Original NBI Clearance/s of STE/s;
• STE Affidavit/s of Construction Experience (PCAB Form No. 108);
• Personal Appearance Form duly accomplished and signed by the STE/s
appearing before the designated officer of the PCAB or the nearest DTI
regional/provincial office (PCAB Form No. 109)

Note: Original Signature of AMO on each and every page of the application forms
including supporting documents except in the PCAB Form No, 109 is required.

Processing of Application

1. The processing of License applications shall be made on a monthly batch

2. The PCAB shall either approve or disapprove each application subject to
subsequent approval of the CIAP.
3. The decision shall be communicated in writing to each applicant within ten
(10) days from the date of such decision, and, accordingly, the license
certificates shall be prepared for and issued to those whose applications were
duly approved.
4. An applicant may file a written request for reconsideration within 30 days
from receipt of notice of disapproval. Failure to do so shall be a ground for
the Board not to entertain such request.

Contractor’s Accreditation for Government Infrastructure Projects

The Philippine Domestic Construction Board (PDCB) placed special

emphasis on the task of contributing to the improvement of government
infrastructure management aimed at ensuring an efficient and equitable contractual
system in the domestic industry.

The Implementing Rules and Regulations of PD No. 1594 governing

infrastructure contracts provides a registration system for screening prospective
contractors for government infrastructure projects to determine their general ability to
undertake different types and sizes of projects.

Classification of Government Projects

Classification of Projects Major Agencies Involved

General Engineering
A. Road, Highway pavement, Railways, DPWH, PNR, LRTA, DPWH, DOTC
Airport horizontal structures and bridges
B. Irrigation and Flood Control DPWH, NIA
C. Dam, Reservoir and Tunneling NIA, NPC, DPWH
D. Water Supply DPWH, LWUA
E. Port, Harbor and Offshore Engineering PPA, DPWH, PEA
General Building
A. Building and Industrial Plant NAIA, DOTC, NPC, NEA, DPWH, NHA, PPA,
B. Sewerage and Sewage LWUA
Treatment/Disposal Plant
C. Water Treatment Plant and System DPWH
D. Park, Playground, and Recreational Work DPWH, LGUs
A. Foundation Work
B. Structural Steel Work
C. Concrete Pre-casting and Pre-stressing
D. Plumbing and Sanitary Work DPWH, LWUA
E. Electrical Work NPC, NEA
F. Mechanical Work NPC, NEA
G. Airconditioning and Refrigeration Work
H. Elevator and Escalator Work
I. Fire Protection Work
J. Waterproofing Work
K. Painting Work
L. Well Drilling Work DPWH, LWUA
M. Navigation Equipment and Instrument NAIA, DOTC
N. Communication Equipment and DOTC, DPWH, PPA, PAGASA
Instrument Installation

Categorization of Contractors

For each of the above types or classes of projects, a contractor shall be

categorized on the basis of its evaluated capability to carry out contracts of different
costs, as follows:

Category Allowable Range of Contract Costs

Sub-Category A Less than or equal to P 0.5M
Sub-Category B Less than or equal to P 3.0M
Sub-Category A Above P3.0M up to P15.0M
Sub-Category B Above P3.0M up to P 30.0M
Sub-Category A Above P3.0M up to P50.0M
Sub-Category B Above P3.0M

Who May Apply for Registration

The following may apply for registration as contractor:

1. Filipino contractors as defined in the IRR

2. Contractors forming themselves into a joint venture
3. Foreign contractors who are duly licensed by the Philippine Contractors
Accreditation Board
Criteria for Registration

To be legally qualified for registration with the Committee, a contractor must

meet all the following requirements:

1. Possession of a valid Contractor’s License for the current year pursuant to

RA 4566;

2. For a joint venture, a subscribed joint venture agreement making the parties
jointly and severally liable for a particular contract and compliance with LOI
630 (at least 75% Filipino capital) and a separate Joint Venture License per
RA 4566 on a project to project basis; and

3. In the case of foreign contractor, a special license duly issued by the

Philippine Contractors Accreditation Board for a particular project and a
certificate as bonafide contractor in their own country duly authenticated by
their respective embassies/consulates.

For more information on contractor licensing and accreditation procedures, please

contact the following:

Philippine Construction Accreditation Board

Construction Industry Authority of the Philippines
4/F Jupiter I Building, 56 Jupiter St., Bel-Air, Makati
Tel. Nos. (632) 895-4424 / 897-9313 / 895-4258 / 897-0869


The expansion of agribusiness enterprises is a profitable opportunity in the

Philippines considering the vast natural resources that the country offers. The
production of a wide array of agricultural land products and the millions of hectares
of fishing grounds that are filled with marine life provide for various potentials, which
can be taken advantage of, such as crop production, livestock production, meat
processing, food processing and packing, etc. Investors can put capital in all stages
of an agribusiness venture, including purchase of raw supplies, provision of up-to-
date machinery, construction of related facilities, financing and management of
actual processing operations, training, transport of finished products, marketing and
the like.

The country’s infrastructure, telecommunications systems, international

shipping ports and airlines, export processing zones and world-class industrial
estates also offer agribusiness investors an attractive business environment.

Department of Agriculture Investor Assistance

The Department of Agriculture is the primary agency mandated to spur the

flow of investments in agribusiness making agriculture the centerpiece of the
Philippine economy. Its office for Agribusiness and Marketing Assistance Service
(AMAS) spearheads its agribusiness investment activities.

To effectively and efficiently deliver its services to agribusiness investors, the

AMAS set up the Department of Agriculture Investment Promotion Unit Network (DA-

The network consists of representatives from DA attached agencies, bureaus

and regional field units and renders the following services:
• Conduct and/or coordinate activities on agribusiness investment
• Organize inbound/outbound trade and investment mission
• Arrange possible investment dialogue/matching
• Compliment activities with the National IPU headed by the Board of
• Review investment project study
• Evaluate the credentials of the project proponent
• Assist investor in site visits
• Facilitate approval of permits, licenses, or other authorization required by
the respective offices/agencies
• Review/streamline systems and procedures

Agribusiness Modality Options for Investors

The following modality options are open to investors in commercial


1. Leasehold Agreement

A contract is signed between a lessee (occupant of the property) and a lessor

(owner of the property) stating the agreed rental fee and duration of use as
well as the option for renewal or non-renewal.

2. Contract Growing /Growership Scheme

In this agribusiness venture, the farm-worker-beneficiaries own the land but

commit to produce certain crops for an agribusiness firm that contracts them
to buy the product at pre-arranged. It is a form of production-marketing
contract. In this scheme, beneficiaries should satisfy market standards at all

3. Contract Marketing Agreement

A marketing agreement (MA) is signed between the cooperative and the

agribusiness firm stating the agreed terms and conditions, such as volume
and quality requirements for processing and/or raw product for export, price
and mode of payment. The signing is usually made before the onset of the
planting season in order to allow cooperative to have ample time for
production planning.

In some cases, the Purchase Order (PO), issued by the anchor firm, takes
the place of an MA and can be used as a bank collateral.

4. Joint Venture
In a joint venture arrangement, the agribusiness firm and the cooperative
agree to form a joint venture (JV) company. The JV leases the land from the
cooperative while the agribusiness firm provides the technology, financing
and management of operations. The cooperative members now become
hired laborers in the farm or the processing plant. The market could be the
JV company and/or the agribusiness firm.

5. Nucleus Estate Scheme

An integration of contiguous individual lots to form a single estate or several

nucleus farms. The management of the nucleus estate can be handled by a
cooperative or a company.

• Cooperative-Managed Farm Set-up

The company negotiates the lease of land to individual owners over a

fixed term. The nucleus farm can be managed by the anchor firm as a
“core” plantation. Management is centralized. The company handles the
production, financing and management of the nucleus farm. The
cooperative members are hired as laborers.

• Cooperative-Managed Farm

This is a grower-type arrangement between the company and

cooperative. The cooperative is contracted as a supplier of raw materials
for the company. In this case, the members of the cooperative surrender
their right to operate the land they owned to the cooperative which
subsequently manages the nucleus farm. The member-owner of the
nucleus farm provides the necessary labor.

The following options are offered for agribusiness investments that involve
construction of service facilities, such as terminal markets, slaughterhouses, post-
harvest facilities, irrigation systems, and other related infrastructures:

1. Build-Operate-and-Transfer (BOT)

A contract is signed between a proponent (business operator) and the

government (and/or landowner), which provides the terms and conditions of
agreement. At the end of the term, investment is transferred to the
government and/or landowner. The proponent is responsible for the total
infrastructure development. To recover the investments and enable the
business to operate profitably, the proponent, under the contract is allowed to
charge rentals, fees, tolls and other charges for the use of the facility.

2. Build-Own-and-Operate (BOO)
The proponent is authorized to finance, construct, own, operate and maintain
infrastructure or development facilities. In order to recover the investment as
well as operating and maintenance costs, the proponent is entitled to collect
rentals, fees, tolls plus a reasonable gain from facility-users. Proponents
under this scheme may assign facility operators.

3. Build-Transfer-and Operate (BTO)

A local government unit (LGU) commissions a private entity to build an

infrastructure facility on a turn-key basis. After the satisfactory completion of
the project, the title is handed to the implementing agency. However, the
private entity will manage the operations under an agreement.

4. Rehabilitate-Operate-and-Transfer (ROT)

An existing facility is turned over to the private sector for it to refurbish,

operate and maintain under a franchise agreement covering a specific period
of time. After the end of the franchise period, the legal title of the facility is
returned to the government. This modality also refers to the purchase of an
existing facility from another country and the manner of importing,
refurbishing, erecting and consuming it within the host country.

5. Rehabilitate-Own-Operate (ROO)

This modality option refers to the turn-over of an existing facility to the private
sector for it to refurbish and operate with no time limit imposed on ownership,
provided that the operator does not violate the conditions of the franchise.
The operation of the facility can be perpetual.

6. Build-Lease-and-Transfer (BLT)

The proponent is authorized to finance and construct an infrastructure or

development facility and, upon its completion, to turn it over to the
government agency or LGU concerned on a lease arrangement for a fixed
period of time. At the termination of the lease, ownership of the facility is
automatically assumed by the government agency or LGU.

Incentives to BOI Registered Agribusiness Firms

The Board of Investment (BOI) provides incentives to pioneer enterprise or

agribusiness firms and non-pioneer agribusiness firms. A pioneer enterprise is a
registered enterprise engaged in any of the following categories:

• Manufacturing, processing or production, and not merely assembling or

packaging of goods/products or raw materials that have not been or are not
being produced in the Philippines on a commercial scale
• Using a design, formula, scheme, method, process or system of production
or transformation of any element, substance or raw material into another raw
material or finished product that is new and untried in the Philippines
• Engaging in the pursuit of agricultural, forestry and mining activities and/or
services, including the industrial aspects of food processing whenever
appropriate, pre-determined by the Board in consultation with an appropriate
Department and to be feasible and highly essential to the attainment of the
national trust
• Production of non-conventional fuels or manufacturing of equipment that
utilizes non-conventional sources of energy or converts to coal or other non-
conventional fuels or sources of energy in its production, manufacturing or

The pioneer enterprise is listed in the Investment Priority Plan of the BOI.
Under the “pioneer status”, the foreign investor can own 100% while under the “non-
pioneer status” the allowable ownership is only 40%.

Priority Agribusiness Joint Venture Projects

The Agribusiness and Marketing Assistance Service (AMAS), Department of

Agriculture has compiled the list of Philippine agribusiness projects in post-harvest,
processing and commercial production which are open to potential investors. It
contains the project title, proponent, brief description, estimated cost, and
collaboration desired by the proponents. The intention is to look for joint
ventures/business partners in these agribusiness projects.

Although the agricultural and fisheries sector remain to be the core of the
Philippine economy, very few Filipinos are able to invest in commercial scale
agribusiness due to lack of capital.

The following are the identified potential investment ventures in agri-

business categorized in post harvest activities, processing and commercial


1. Sub-Zero Cold Storage and The proposed project is a cold 1.63 M Funding
Warehouse, Ms. Virginia Salomon, storage facility for agricultural and
Km. 171 Mc. Arthur Highway, Carmen, marine products with a capacity of
Rosales, Pangasinan 2,400 metric ton or 720,000 metric
ton per year. The cold storage has
twelve rooms with holding capacity
of 200 metric ton each.
2. Cold Storage Facility for Vegetable The project will serve as a cold 0.42 M Financing
Crops, Santiago City Development storage facility for growers/farmers
Corp., G/F Travelers Bldg., Centro from the city and its neighboring
East City, Isabela municipalities.
3. Agro-Industrial Grains Complex, Mr. The project seeks to establish agro- 0.8 M Joint venture,
Alejandro C. Paciente, Manager, industrial grain complex in Tulunan, Market access
Farmers Multi-Purpose Coop., Cotabato. The project will put-up two
Poblacion, Tulunan, Cotabato (2) units of grains drying equipment
with a capacity of 10 tons per hour,
50,000 bag capacity warehouse,
twin sack manufacturing facility and
a mini-feedmill plant.
4. Seaweed Buying Station, Sulu The project aims to install a buying 0.5 M Joint venture,
Seaweed Growers Multi-Purpose station that will serve as a venue for Procurement of
Cooperative, Jolo, Sulu direct buying of seaweeds and Machinery &
seaweed products. This will Equipment, Market
minimize the control of access
traders/middle men buyer and
enable the growers to receive higher
5. Cold Storage & Warehouse, Mr. The proposal deals with the 0.6 M Financing
Manuel L. Tan, Molino Marine establishment of cold storage and
Products Corporation, 353 Bo. Molino warehouse for products exported to
3, Bacoor, Cavite USA, Japan, and Germany.
6. Feedmill, Corn Drier and Silo: The project seeks to expand existing 3M Financing, Joint
Expansion Project, Mr. Demosthenes corn drying and storage facilities in venture
Du, CAPICOR, Julio Pacana St., Puntod, Cagayan de Oro to
Cagayan de Oro City Bukidnon to have operational
capacity of 5,000 metric ton. In
addition it will also expand operation
of existing feedmill in Cagayan de
Oro from10 mt/hr. to 20 mt/hr.
including of pelletizing and extrusion
7. Integrated Slaugtherhouse Cold The project seeks to upgrade and 1.1 M Joint venture,
Storage and Tannery, Mr. Arsenio G. expand existing slaughterhouse Financing
Carcosia, Chairman, Midsayap Meat facilities (addition of 10 T storage
Vendors MPCI, Midsayap, Cotabato facility and leather tanning facilities).
8. Metro Cotabato Regional Agri The project involves the 33.2 M Site developers
Industrial Center, Ibrahim K. development of 129 hectares to an Joint venture,
Guiamadel, DTI Cotabato City agri-industrial area (with water Financing
supply, drainage, sewerage, solid
waste facilities, power/lightning
standard factory buildings,
Administrative buildings, security
facilities, fire station, health center,
9. Polypropyline (PP) Sack Making The project deals with the 298 T Financing Joint
Plant, Hon. Virgilio L. Leyretana, Sr., establishment of a polypropylene venture
Cotabato City (PP) sack making plant as container
of agricultural products.
10. Farmers' Market and Shopping The project will establish a farmers' 5.3 M Financing, Joint
Center, Hon. Virgilio L. Leyretana, Sr., market, a 6-level commercial center venture
Cotabato City and a suitable parking area.
11. Integrated Grains Post-harvest & The project is designed to process 769 T Joint venture,
Processing Center, Hon. Virgilio L. rice, corn and other grains within the Financing
Leyretana, Sr., Cotabato City 80 km. radius of Cotabato City.
Estimated average yearly production
of grains within the catchment areas
is 1 M tons.
12. Food Terminal, Hon. Virgilio The project is about integrated 436 T Financing, Joint
Leyretana, Cotabato City slaughterhouse cold storage facility venture
for processing cattle, poultry and
marine products.
13. Post Harvest Facilities, Mr. The project involves the expansion 800 T Financing, Joint
Alejandro S. Paciente, Km 126 of existing post harvest facilities and venture
Farmers MPCI, Poblacion, Tulunan, services which include: grains dryer
Cotabato (20t/day) grains warehouse (50,000
bags), & plastic twin sack
manufacturing (8M pcs./year).
14. Mindanao Cooperative Grains The project will establish a modern 7.3 M Joint venture,
Complex, Mr. Primitivo F. Panogadia, grains processing complex in a 2 Market access,
Manager-North Cotabato Free hectare site located along the Technical expertise,
Farmers cooperative, Inc., Capayuran National Highway, Capayuran Procurement of
Pigcawayan, Cotabato Province Pigcawayan and Cotabato. The site machinery &
is very strategic in terms of its equipment
location and its accessibility to land,
sea and air conveyances.



1. MNLF Grains Complex, MNLF The proponent will establish a grain 2.5 M Joint venture, Build
Central Cooperative, Municipality of complex in Matalam, Cotabato to operate transfer
Matalam, Cotabato produce great volume of grains that scheme
could spur economic development
and provide livelihood in the
2. Natural Grade (PNG) Carrageenan MCPI Corporation produces the 25 M Capital funding
Plant Expansion and Installation of an Quality Refined Natural Grade
Integrated Fully Refined (TRC) (PNG) carrageenan (Kappa &
Carrageenan Facilities, MCPI Corp., Lambda) which is being used for
Tugbongan, Consolacion , Cebu processed meats, dairy, bakery,
dessert, gels, beverages, canned
pet food, personal care and other
industrial products. MCPI plans to
expand its product lines to include
traditionally refined carrageenan
(Lambda & Lota) which is used by
textile, toothpaste and paint
3. Integrated Abaca Plantation and The project consists of 162 M Joint venture,
Pulp/Paper Mill, Mr. Teodosio Cada, establishment of a 30,000 ha. of Compensation
Department Manager, DBP, Region 8 abaca plantation including a nursery Agreement, Crop
and an abaca pulping and paper mill production ,
with a minimum rated capacity of Subordinating
50,000 tons of abaca handicraft franchise, Market
manufactured (handbags, hats, access
slippers, etc.) will be undertaken.
4. Mango Processing, Siegfred Tomen The proposed processing plant is 1.25 M Joint venture,
Enterprises, Santa Cruz, Davao del located in a special economic zone Market access,
Sur and falls under the jurisdiction of the Procurement of
Southern Philippine Council Peace machinery and
and Development (SPCPD). It is equipment
situated at the ports, both Davao
and General Santos City have
international airports.
5. Fruit Processing Facility, Fruit The project involves the 1M Equipment
Industries Development Coop., establishment of an integrated fruit purchase, Market
Tacurong, Sultan Kudarat (specifically mango) processing access
facility which will include vapor heat
treatment of fresh mango for
exports, mango puree and
dried/candied mango. In a
production of 50 metric tons per year
from 1,000 hectares, about 20% will
be processed into puree juice, dried
candy, etc. and the remaining
volume will be sold locally.
6. Integrated Orchard Crops and Food The project will establish an 6M Joint venture,
Processing Plant, Kidapawan integrated orchard plantation (yam, Market access,
Federation of Diocesan Cooperative, jackfruit, soybean, etc) and food Procurement of
Kidapawan City processing plant in Kidapawan City. machinery and
The plant will produce yam flakes, equipment
jackfruit purees, dried rice pulp, soya
milk and flour, textured vegetable
protein and full fat soybean meal.
7. Palm Oil Production and The proponent proposes the 200 M Funding
Processing, North Cotabato Rubber establishment of 2,000 ha of oil palm
Development Cooperative plantation including oil mill facility.
(NOCORDECO), San Nicolas and San
Vicente, Makilala, Cotabato Province
8. Integrated Coconut Processing, The project will establish an 2M Joint venture,
Cotabato Integrated Industries Multi- integrated coconut processing plant Market access,
Purpose Cooperative, Binoligan, that will produce coco fiber. Financing
Kidapawan, Cotabato City
9. Palm Oil Processing Facilities, Mr. The project will develop 10,000 ha. 4M Market access,
Antonio C. Garcia, Vice Pres. Central oil palm plantation and processing Technology
Cotabato Oil Palm Growers, Tacurong, plant that will extract and refine oil. It
Sultan Kudarat will produce edible oil for food
preparation and oleochemicals for
industrial and commercial use.
10. Halal Meat Processing, Mr. The halal meat project requires 2.8 M Joint venture,
Abdullah D. Dimaporo, Prov'l. feedlot and slaughterhouse facility Market access
Governor of Lanao del Norte, Baloi, which will be established in the
Lanao del Norte Municipality of Baloi, Lanao del
Norte utilizing a 2-hectare land. This
will also include provision of
machinery, equipment and office
facilities. The proposed site is close
to raw materials.
11. Passion Fruit Processing, Bai The project will establish about 0.88 M Joint venture,
Rachma Biruar Sinsuat, Parang, 1,000 ha. passion fruit plantation Market access,
Maguindanao and a processing plant. Passion fruit Equipment
is a highly potential crop in purchase and
processed form. expertise
12. Sugar Refinery Project, William & The project will utilize new 120 M Financing, Capital
Company Phils., Inc., Tubod, Sapad processing technology of integrating investments,
and Salvador Lanao del Norte the boiling house and its auxiliary Marketing
into a compact refined sugar factory. technology transfer
Source of raw sugarcane for the
sugar refinery will be from the
10,000 ha. sugar plantation to
develop during the first phase of the
13. African Palm Oil Production The proponent proposes to establish 18 M Joint venture, Soft
Processing Plant, Kutawatu African an African palm oil plantation in loans
Palm Oil Agro-Industrial Ventures Pigkawayan, Cotabato including the
Municipal Development Council setting-up of processing plants near
(MCDC), Pigcayawan, Cotabato the plantation site.
14. Balabagan Integrated Coconut The complex will produce 40 million 7.5 M Joint venture,
Processing Plant, Dr. Edna B.S. Ogka, matured nuts yearly with the Financial infusion
Mayor Lanao del Sur, Balabagan, following end products and by-
Lanao del Sur products: bristle and mattress fiber
(4,320 tons), fiber board (500,000
tons), coconut flour (5,240 tons),
pyrolygneous liquor (250 tons) and
extra shells for fuel or other uses
(4,500 tons).
15. Integrated Coconut Processing The proponent proposes to establish 1.04 M Joint venture,
Plant, Mindanao Processing Plant, an integrated coconut processing Market access,
Malabang, Lanao del Sur plant to process the raw materials Technology, Capital
into coco coir, cocodust, foam infusion
booster and vinegar.
16. Abaca Production and Processing This project consists of four 17.2 M Joint venture, Soft
Plant, Manobo Agro Industrial Estate components: Establishment of loans
Farm, Manobo, Cotabato Abaca Plantation, Establishment of
Abaca Semi-Processing units,
Infrastructure Support and Mass
Housing and Human Resource
17. Organic Fertilizer Factory, This project proposed to produce a 1.19 M Financing
Cotabato Sugar Multi-Purpose seaweed-based organic fertilizer in
Development Cooperative, Matalam, pellet form. It is from composite
Cotabato materials of organic source such as
sugarcane bagasse or corncobs,
animal manure and brown
seaweeds. The use of organic
fertilizer can lessen the dependence
on inorganic fertilizer without
damage to soil fertility.
18. Marine Fishery and Development The project includes deep-sea 2.67 M Joint venture,
Project, Pitogo Integrated Agro Marine fishing, fish culture and production, Market access,
Cooperative, Pitogo Bay, Kalingalan, fish preservation and processing and Technical
Kalwang Sulu marketing. The proposed project assistance,
also includes buy and sell of cultured Financing
and preserved products and the
policy of its marketing network.
19. Integrated Coconut Processing The project seeks to establish a 5- 800 T Financing, Joint
Center, Engr. Rolando T. Delfin, Sultan km integrated coconut processing venture
Kudarat Center, Isulan, Sultan Kudarat facility capable of producing refined
edible oil with vinegar, charcoal,
coconut flour and coconut meal or
20. Herbal Medicine Manufacturing The project involves the 0.66 M Financing, Joint
and Processing Plant, Dr. Eduardo T. establishment of a herbal medicine venture
dela Fuente, Dela Fuente Herbal plant with a capacity of 50 M
Farms, 156 Sinsuat Ave., Cotabato assorted tablets/month from a 20-
City hectare herbal medicine plantation.
21. Rice Straw Board, William Valdez, The project seeks to establish a 10 M Joint venture,
DA-RFU III, San Fernando, Pampanga manufacturing plant of straw board. Financing
22. Rubber Processing Plant, Ms. The project involves the 2.3 M Financing, Joint
Meriaty Subroto, Investment establishment of a manufacturing venture
Technology Division, Investment facility to process rubber into
Services, Asia-Pacific Unit, UNIDO E- finished/semi-finished products from over 4,500 has. of rubber plantation in North Cotabato.
23. Fruit Processing, Packaging and The project deals with the 633 T Financing, Joint
Trading Center, Mr. Rex A. Rivera, establishment of agricultural venture
President, Gen. Santos City Sarangani infrastructure facility - fruit
Fruit Cooperative, 11 Magsaysay Ave., processing/packaging plant and
Gen. Santos City trading center.
24. Palm Oil Processing Facilities, Mr. The proposal seeks to establish 4M Joint venture,
Antonio C. Garcia, Central Cotabato palm oil processing facilities to Financing
Oil Palm Growers, Tacurong, Sultan extract and refine palm oil from an
Kudarat estimated 10,000 hectares palm
plantation in Sultan Kudarat, to be to
be able to produce edible oil for food
and industry.
25. Mixed Spices for Export The proposal seeks to establish 526 T Joint venture
Processing, SF-PAJMAHS, San Flor processing plant for of mixed spices
Garments, Tibanga, Iligan City (ginger, red pepper, leeks, onion and
salt) for export.
26. Crumb Rubber Processing Project, The proposal involves the 0.2 M Financing
Engr. Glicerio Hilario, Mindanao establishment of a crumb rubber
Agricultural and Rubber Growers processing plant in Malarila,
Integrated Cooperative (MARGICO), Makilala, Cotabato. The finished
Makilala, Cotabato product is baled crumb rubber or
crumb 20.
27. Feedmill Plant, Mr. Virgilio L. The proposal involves the 0.2 M Joint venture,
Leyretana, Sr., CITEC, Cotabato City establishment of a feed-milling Financing
facility for the poultry/livestock
industry in Cotabato City and nearby
28. Integrated Corn Processing, Engr. The proposed project is a medium 1.04 M Joint venture,
Cader Mamburay, Muhajis Halal Foods sized corn processing plant with a Financing
Manufacturing and Marketing, 172 capacity of 30,000 mt. of corn
Lilod St., Marawi City kernels.
29. Organic Fertilizer Production, The project is a commercial 0.5 M Joint venture,
Prime Sultan Development, Corp., production of organic fertilizer using Technical Expertise
Tacurong, Sultan Kudarat compost and guano as base
ingredients. The province of Sultan
Kudarat has a significant deposit of
30. Integrated Zero Waste, Agri-based The project deals with the 2.45 M Joint venture,
Food/Cosmetics/Pharmaceutical establishment and operation of a Processing
Ingredients Processing Plant, Mr. strategically located (Gen. Santos
Emmanuel C. Reyes, Tentay Food City) modern agri-based food,
Sauces, Inc. Fax: (632) 833-4633 cosmetics and pharmaceutical
ingredients processing plant, which
will produce dried, dehydrated,
powder concentrates and essential
oil extracts from fresh, tropical fruits,
vegetables, tubers, root crops, herbs
and spices for domestic and
international markets. The facility will
use a mixture of the latest and
effective imported and house grown
processing technology and
equipment for an economical size



1. Eel Fattening, Mr. Fred Panisa, The project will engage in eel 1.25 M Joint venture,
Cotabato City production using modern Financing
technology. The project will produce
about 1,190 mt. eel per year.
Fattened eel will be marketed to
Metro Manila and other urban
centers of the province.
2. Fish Pen, Datu Abubakar M. Halun, The project is composed of deep 2.9 M Joint venture,
President, Business Center Tawi-Tawi, sea fishing and other seaweed Equity contribution,
Bongao, Tawi-Tawi farming and trading. The project is Procurement of
expected to give decent source of Machinery and
income for takers and fishermen. Equipment,
Proposed products include groupers, Marketing
milkfish, shrimps, tuna & seaweeds. Assistance,
3. Palm Oil Production, Socsargen The proposal seeks to establish 769 M Financing
Realty & Development Corp., 90,000 ha. oil palm plantation in
Dadiangas North, General Santos City South Cotabato, Sultan Kudarat,
Saranggani and General Santos
4. Peanut Seed Production, Mr. The project seeks to develop 500 418 T Financing
Emmanuel B. Avancena, So. Frontier hectares (SOCSARGEN including
Farms, Nacalaban St., Cagayan de Cotabato, Davao Provinces, Misamis
Oro City Oriental, Bukidnon, Zamboanga del
Sur & Norte) for commercial peanut
5. Mega Integrated Agro-Livestock The project is an expansion of Mega 1.28 M Financing
Project, Mr. Hong C. Lee, Lapasan Hi- Farm's existing hog operations from
way, Cagayan de Oro 1,400 sow level to 2,800 sow level.
6. Crocodile Farming for Meat and The project proposes to establish in 1.28 M Joint venture,
Hide Production, Mr. Virgilio a 5-ha. area a crocodile collection, Financing
Leyretana, Sr., CITEC, Cotabato City breeding and culturing to be used for
crocodile hide and meat production.
7. Chicken Egg Production, Mr. Virgilio The project proposes to raise 0.5 M Joint venture,
L. Leyretana, Sr., CITEC, Cotabato 100,000 chickens (egg-layers) to fill Financing
City the demand in the area including
nearby provinces.
8. Young Corn as Export Product, New The proposal deals with production 1.23 M Financing, Joint
Ultra MPCI Matanog, Maguindanao of young corn in a 500 ha area. venture
9. Mango Production Intercropped with The project seeks to propagate & 77 T Financing, Joint
Jackfruit and Rambutan, Mr. Virgilio L. plant Cebu variety of sweet venture
Leyretana, Cotabato City. mangoes with jackfruit and rambutan
in a 13 hectares area.
10. Fruit Production, Samirh Musali, The project proposal seeks to 1.74 M Financing, Joint
Datalbao, MPCI, Columbio, Sultan establish 300 ha. each of mango venture
Kudarat and durian plantation in Datalbao,
Columbio, Sultan Kudarat.
12. Integrated Livestock Production The project proposes to establish a 0.7 M Financing
and Marketing Project, Mr. Jovencio fully integrated livestock growing
Bautista, Livestock Producer's and operations including feedmill,
Marketing Coop. (LIPROMAC) Labo, breeding center, marketing outlet,
Camarines Norte research facility slaughterhouse and
cold storage.
13. Integrated Cutflower and The project is about the 0.6 M Financing
Strawberry Growing Operations and establishment of a fully cutflower
Transport Facility, Mr. Sabado and strawberry growing operations
Walong, La Trinidad MPCI, Longlong, supported by post harvest collection
Puguis, La Trinidad, Benguet center and transport facility.
14. Palm Oil Plantation and Refinery, The plantation estate is located in 32.5 T Joint venture,
Mr. Ibrahim P. Paglas III, Chairman, the eastern portion of the Marketing,
Datu Paglas, Maguindanao municipality which is flat to Technical
undulating terrain with some hilly to Expertise,
steep slope. The target area for the Financing
plantation is 15,000 ha, which is own
by the Paglas Corporation and some
members whether individual or
family own.
15. Integrated Cooperative Mushroom The project seeks to establish a 128 T Financing
Production and processing, Saka-Laya commercially cooperativized,
Cooperative, Toril, Davao City sustainable mushroom production,
processing and marketing

For further assistance and information in the establishment of agribusiness

industries, please contact the following:

Agribusiness Investment and Enterprise Development Division

Department of Agriculture
Rm. 108 Elliptical Road, Diliman, Quezon City
Tel. No.: (632) 920-4073 / 920-2216
Fax No.: (632) 926-6434
Website address:


The Philippine government is counting on exports to increase economic

growth to as much as 4.5 percent annually. Exports account for about 40 percent of
the country's gross domestic product. Overseas sales of electronic components, the
country's biggest export, rose to 17 percent in September 2003 to $1.69 billion after
18 percent growth in August 2003.

Shipments to the United States, which buys about a quarter of Philippine

exports, rose 5.5 percent to $833.5 million, compared with a 5.4 percent increase in
2003. Exports to Japan, which accounts for about 15 percent of overseas sales,
grew 11 percent to $437 million after 12 percent in 2003.

The following are the major products for exports in the Philippines:

§ electronics and semi-conductors

§ shell products and jewelries
§ abaca, manila hemp and fiber
§ handicrafts
§ coffee and cacao beans and other agricultural products

The government has established special economic and processing zones in

various parts of the Philippines to encourage foreigners and former Filipino citizens
to invest in the Philippines through production of goods for exports. Among the
benefits afforded to investors in these zones are tax incentives, permanent residency
status for foreigners, and government support through official development



The One Stop Export Documentation Center (OSEDC) houses under one
roof the following government agencies engaged in the processing of Commodity
Clearances and Certificates:

• Bureau of Animal Industry

• Bureau of Customs
• Bureau of Fisheries and Aquatic Resources
• Bureau of Plant Industry
• Fiber and Industry Development Authority
• Garments and Textile Export Board
• National Statistics Office

OSEDC clients are encouraged to attend the seminar on OSEDC to know the
procedures and documentation required for accreditation.

Documentation Requirements and Procedures

Export Declaration (ED) is a document required for every export shipment,
whereby the exporter or his duly authorized representative declares and certifies the
full particulars of a shipment. It is also a pre-loading document required by the
Bureau of Customs to enable the exporter to load his goods from any of the customs
ports for every shipment with or without exchange of foreign proceeds.

1. Pre-Loading Attachments

a. Commercial / Pro-Forma Invoice (3 copies)

b. Commodity Clearance (if needed)

c. Certificate of Identification duly signed by the Customs Examiner

• For products with imported raw materials
• For products under repair
• For imported products under re-export bond
• For exhibition purposes (is applicable)

d. Import entry (for returned shipments not coming back to the

Philippines, e.g. defective items, wrong shipment, capital equipment
indicating the payment of duties and taxes)

e. Passports and packing list for personal consumption (photocopy)

2. Bureau of Customs

Certificate of Origin (CO) is the declaration of the exporter, certified by

BOC, that his exports comply with the original requirements specified under
bilateral, regional or multi-lateral trading arrangements to which the
Philippines is a party.

Supporting documents:

a. commercial invoice
b. bill of lading (non-negotiable signed by the shipping lines)
c. copy of approved / processed export declaration
d. amendments (if necessary)


a. Exporter / Broker buys CO form to be accomplished in quadruplicate by

the exporter / broker
b. Exporter / Broker files CO together with the supporting documents and
pays P115.00 BOC documentary stamp at Counter 3
c. Signing officer checks the accuracy and completeness of the documents
and affixes her signature on CO
d. Releasing officer assigns control number on approved CO and releases
the same to concerned exporter / broker

As per Customs Memorandum Circular CIC No. 182-96 GSP Form A bound
for Canada and USA will no longer require the official certifying authorities to
stamp and sign Certificates of Origin covering beneficiaries’ shipments.

3. Export Commodity Clearance

Export Commodity Clearance (ECC) shall refer to all pre-exportation
requirements issued by the government agency other than those of the BOC
to authorize loading. These agencies are:
a. Bureau of Fisheries and Aquatic Resources (BFAR) – The BFAR is
tasked with inspecting and providing Commodity Clearances and
Health Certificates for the exportation of fish and fishery products prior
to shipment.

b. Garments and Textile Export Board (GTEB) – The GTEB was created
to integrate and rationalize government policies and procedures
governing the Philippine garments industry. It is in charge with the
overall administration and allocation of export quota, processing and
issuance of garments and textile export clearances, bonded
manufacturing warehouse licenses, and authority to import raw

c. Bureau of Animal Industry (BAI) – The BAI prescribes standards for

the quality of manufacture, importation, labeling, advertising,
distribution and sale of livestock, poultry and allied industries.

d. Fiber Industry Development Authority (FIDA) – All FIDA-licensed

Grading-Baling Establishments (GBEs) are allowed to export fibers
upon compliance with the standardization policies of the Authority.
Fiber shall refer to any indigenous fiber derived from plants or from
animals, such as hair, feathers and silk. It shall be denominated and
interpreted according to its common and commercial significance and
not its scientific nomenclature.

e. Bureau of Plant Industry (BPI) – In issuing Commodity Clearance, the

BPI- Plant Quarantine Service prevents the introduction of foreign
pests into the country, prevent the further spread of pests already
present in the country, and complies with the Phytosanitary
requirements of the importing country.

f. Department of Trade and Industry – National Capital Region (DTI-

NCR) issues Handicraft Certification (for European Union countries),
Certification of Handmade Products, and Certification (for Austria).

For more information on requirements and procedures for export activities and
marketing, please contact:

Philippine Exporters Confederation, Inc. (PHILEXPORT)

ITC Complex, Roxas Boulevard cor. Sen. Gil Puyat Ave.
Pasay City
Tel. Nos.: (0632) 833-2531 to 34
Fax. No.: (0632) 834-2353
Email Add.:


Investment Incentives for Ecozone Developers / Operators

• Income Tax Holiday;

• Incentives under the Build-Operate-Transfer Law, which includes government
support for accessing Official Development Assistance and other sources of
• Provision of vital off-site infrastructure facilities;
• Option to pay a special 5% Gross Income Tax, in lieu of all national and local
• Permanent resident status for foreign investors and immediate family
• Employment of foreign nationals;
• Assistance in the promotion of economic zones to local and foreign locator

Incentives for Ecozone and Information Technology Locators

• Income Tax Holiday (ITH) or Exemption from Corporate Income Tax for four
years, extendable to a maximum of eight years; After the ITH period, the
option to pay a special 5% Tax on Gross Income, in lieu of all national and
local taxes;
• Exemption from duties and taxes on imported capital equipment, spare parts,
supplies, raw materials. Also breeding stocks and/or genetic materials or the
equivalent tax credit on these items, when sourced locally;
• Domestic sales allowance equivalent to 30% of total sales;
• Exemption from wharfage dues and export taxes, imposts and fees;
• Permanent resident status for foreign investors and immediate family
• Employment of foreign nationals;
• Simplified import and export procedures;

Other incentives under Executive Order 226 (Omnibus Investment Code of 1987), as
may be determined by the PEZA Board.

For more information on economic zones, please coordinate with the following:

Philippine Economic Zones Authority

Promotions and Public Relations Group
Tel. No.: (0632)551-3436



Subic Bay provides a wide range of investment opportunities for various

industries - ranging from electronic communications technology to world class
hotels, housing units and convention complexes on prime waterfront sites to
shopping malls and high rise buildings.

The SBMA continues to develop its Central Business District by devoting its
181-hectare area to commerce and tourism, allotting 5 hectares to a mini-
business park, 1.27 hectares for multi-story mixed-use project, 8,500 m2
additional office spaces, 15 hectares ship repair facility and waterfront
residential area.

Among the business enterprises in the SBMA are the following:


This site, situated along Argonaut Highway, is ideal for a 12-hectare shopping
mall, 8-hectare convention center and 1.5-hectare business hotel to house
convention participants. The convention center is envisioned to be a two-
module type center with state-of-the art convention equipment. The first
building would be a 3,500 capacity Plenary Hall with 20 meeting rooms
varying from 200 to 1,500 seating capacity. The second module will be a
10,000 square meter multi-purpose hall as venue of local and international
exhibits, trade shows, performances, concerts and other indoor assemblies.

Adjacent to the Subic-Tipo Expressway will be the Gateway Business Hotel,

intended for a 300-room hotel with restaurants, bars, banquet halls, a
swimming pool and other recreational facilities of a three-star hotel.


The Subic Bay Industrial Park (SBIP) is a 153-hectare industrial area

managed by the Subic Bay Development and Management Center (SBDMC).
Phase I of the SBIP covers about 105 ha. with the remaining area, consisting
of about 48 ha., reserved for Phase II. Among the investors now located at
the SBIP are Acer, Taiwan Hitachi, Teco Electric and Machinery, Contex
Corporation, Taian Subic and Tailin Abrasives Corporation. Acer's main
supplier of notebook peripherals, Catcher Technology (Philippines) Inc., has
chosen to relocate in the park.


The Subic Techno Park (STEP) is a 60-hectare Philippine-Japanese joint

venture industrial estate among the SBMA, Japan International Development
Organization Ltd. (JAIDO), Toyo Construction Co. Ltd., Kawasho Corporation
and The Bank of Tokyo Mitsubishi, Ltd.

It features a Techno Center (Area A) with two standard factory buildings and
an administration building, and Techno Park (Area B), an industrial estate.
The administration building provides temporary office spaces to prospective
locators. It also hosts one local bank (affiliate of Japanese bank) that
provides full banking service to STEP locators.

Pioneer locators in the area include Omron Corporation and Nihon-Inter

Electronics. More companies engaged in electronic commerce are pouring in.
Sankyo Seiki, viewed as the second largest facility in the Freeport,
manufactures micro motors for hard disk drives & pick-ups for digital video
disks. Juken Sangyo is engaged in wooden interiors. Philippine Inter-
electronics Corporation is a manufacturer of semi-conductors. Sanyo Denki is
a world leader and the oldest Japanese manufacturer of high quality Fan
Motors for electronic equipment cooling systems.


Linking the Freeport to the Bataan Techno Park (BTPI) is the former
NAVMAG, now known as Ilanin Forests, reserved for recreational and
tourism use under the National Integrated Protected Areas System (NIPAS).
The area is envisioned to be transformed into a Subic Bay Nature Park, a low
density and high value resort complex which shall feature, among others,
adventure tourism activities, a Marine Park and other ecologically sound

The area has been subdivided into project sites: Ilanin II refers to the four-
hectare Camayan Point. The area is an ideal site for a 400-room resort hotel
complemented by watersport facilities. Ilanin III or the 5,000 sq. m.
Commercial Tourism Area at Camayan Wharf is located at the center of
Ilanin Resorts. The site may serve as a transportation depot and is a suitable
location for souvenir shops, restaurants, health clubs and other services and
amenities. Ilanin IV or the 3-hectare hidden beach may include facilities such
as villas, hotels with restaurants, bars and swimming pools. Hidden Beach is
partly forested and partly grassland.

E. HILL 394

Hill 394 is found in the eastern part of Ilanin Forest. Called as such because
it used to be a secret helipad 394 feet above sea level, intentionally
constructed in the forest for military secrecy. It is home to 51 species of birds
and 151 species of trees. A panoramic view of the lush forests, Zambales
and Bataan mountains can be enjoyed at the top of the hill. The hilltop is
accessible by a four-wheel drive vehicle or is a 45-minute trail hike, and is
perfect for picnics, trail ride, mountain biking, camping and bird watching.


Located at the mouth of Subic Bay is the tempting Grande Island, a self-
contained recreational center off the shores of Subic Bay. Because of its
location, it has held a significant role in the defense of the Philippines since
the 16th century. It was the former Fort Wint, with a heavily fortified and
armed outpost guarding the entrance of Subic Bay. Remains of history can
still be found like the anti-aircraft battery bunkers and cannons.

The island is being tapped for hotels, restaurants, golf course, and other
recreational facilities. A ferry boat will bring you to this beautiful island.


This scenic 3,800-hectare peninsula has been earmarked for the

development of subdivisions, golf courses, resort hotels and restaurants. In
1998, 40 hectares of Redondo was used for the construction of the US$125
million platform towed to Palawan for the Shell-Malampaya gas to energy
project. This area is open to tourism, industrial and port projects.


The management and control of Bataan Techno Park, Inc. (BTPI) has been
formally turned over to SBMA. The 365-hectare area can be utilized for the
establishment of, among others, manufacturing, tourism-related businesses,
centers for research and education, center for agriculture and aquatic
resource and retirement villages. The development of the BTPI complex will
enable its locators to gain access to Subic's world class facilities and
infrastructure including the seaport and the airport.

For more information on the SBMA, please coordinate with the following:
Promotions and Marketing Department
Subic Bay Freeport Zone
Building 225, Dewey Avenue, Subic Bay Freeport Zone
Tel. Nos.: (06347) 252-4626 / 4627 / 4354 / 4216
Fax. No.: (06347) 252-4216
Email Add.:


A former U.S. military base, Clark’s location is right at the center of growing
markers in the Asia-Pacific region. The zone’s modern infrastructure facilities,
fiscal and non-fiscal incentives, professional support services, amenities, and
other advantages make it an ideal place for investments. The 4,400-hectare
main zone and 29,213-hectare sub-zone transforms the area into an airport-
driven urban center with information and communications technology,
aviation support, commercial trading, agro-industrial opportunities, tourism
and other sectors.

The following advantages are being offered in the Clark Special Economic

• Access to Clark’s 2,500–hectare modern aviation complex designated as

the country’s future premier gateway site
• Modern telecommunications facilities, power and water supply, waste
management, vast road network and other infrastructure
• Waiver of local and national taxes, provision for 100% equity on most
industries, duty free status and other fiscal and non-fiscal incentives
• Ready access to a pool of highly qualified, and English-proficient skilled
• Competitive lease rates on buildings starting at US $0.30 per sq. m. per
month, available for short, medium and long-term lease period
• Access to several industrial and technology parks located within the zone

Among the industrial and technology parks located in Clark are the following:

• PHILEXCEL Industrial Park

• Philippine Cyber Technopark Corporation
• Clark Premier Industrial Park
• Berthaphil, Inc.

For more information on the Clark, you may coordinate with the following:

Marketing Department
Clark Special Economic Zone
Building 2127, C.P. Garcia St. cor. E. Quirino St., Clarkfield,
Tel. No.: (06345) 599-4652
Fax. No.: (06345) 599-2642
Email Add.:

The Mactan Export Processing Zone (MEPZ) is located in Mactan Island,

Cebu with access to seaport and airport. Over the past 16 years, the MEPZ
has been consistently forging important links with the business sector whose
interests cover a wide range of industries: electronics, computers,
communication, precision instruments, metals, chemicals, garments and

To date, MEPZ boasts of a total of 92 registered companies with 74

companies in the operational stage while others are implementing their
projects. Export from the MEPZ in 1994 totaled US $663 million. Direct
employment in the MEPZ covers more than 27 thousand workers and is one
of the biggest employers in the country today. It is currently paying an
average of P130 million in monthly salaries and wages. The MEPZ
enterprises are confident that by maintaining their good relationships with
both their employees and local government, they will continue to grow,
providing increased employment in the region and further stimulating
economic growth.

Among the big exporters in the MEPZ are the following:

Name of Product/Activity Equity E-mail Address

Company Participation
1. Abtech Manufacture of various 100% Filipino
Machineries models of large
and diameter spiral steel
Engineering pipemaking &
Services Corp. processing equipment;
reconditioning /
refurbishing of highly
agricultural / farm
2. AEI Manufacture of various 100% Filipino -
Enterprise, Inc. kinds of handicrafts,
(formerly AEI shell crafts & novelty
Enterprise) items, fashion
accessories, costume
jewelries & its
components, beads &
3. Alicia Ann Manufacture of sewing No Data
International, baskets, knitting Available
Inc. stands, knitting bags
and scissors.
4. All Bags Manufacture of various 60% Filipino -
International bags and luggages. 40% German
5. Al-Safe Manufacture of optical 99.99% French -
Phils., Inc. casings for binoculars, 00.01% Filipino
cameras, etc. and
woven industrial and
occupational clothing.
6. Asia Sub-assembly of 100% Filipino -
Technologies camera parts.
7. Autoliv Izumi Manufacture of 100% Japanese ali.caballero@autolivasp.
Phils., Inc. automobile parts com
(formerly specifically steering
Philippine wheels and other
Izumi Corp.) plastic parts.
8. Cebu AOI Manufacture of metal 100% Japanese -
Development parts for riflescopes,
Technologies sporting scope of
Corp. cameras, overhead
projector, copiers and
fishing reels.
9. Cebu Chip Manufacture of fine 99.995%
Connection, gold bonding wires for Caymanian
Inc. industrial purposes. 00.002%
10. Cebu Dai- Manufacture of 55% Filipino
ichi Corp. molding dies and 45% Japanese
industrial plastic parts.
11. Cebu Daiki Manufacture of ladies' 99.99%
Corp. and men's ready-to- Japanese
wear garments such as 00.01% Filipino
suits, jackets, skirts,
pants, sportswear,
polos and blouses.

For more information on the MEPZ, please coordinate with the following:

General Manager, Mactan Export Processing Zone 2

Field Office: ACOLAND, INC. 2F Administration Building, MEPZ 2
Amodia St., Basak, Lapulapu City, Mactan, Cebu
Tel. No. (63-32) 3404-680 to 682
Fax No. (63-32) 3404-670
Cellphone: (0917) 322-5858


Name of Product / Activity Equity E-mail Address

Company Participation
1. Adriste Manufacture of high 80% Swiss-
(Phils.), Inc fashion leather gloves. Italian
10% Swiss
10% Indian
2. Bay Sports Manufacture of door 90% Filipino
Mfg., Inc. answering machines, 10% German
(formerly alarm clocks, other
Baylock security devices &
Manufacturing other electronic
, Inc.) devices and, and / or
parts and components.
3. Manufacture of liquid 60% Filipino
Consolidated gaseous nitrogen. 40%
Industrial Australian
Gases, Inc.
4. Dae Gu Manufacture of knitted
Apparel Corp. sweaters. 99.99%
5. Fit In Trade Repair and 100% Filipino
and Services, maintenance of PCB
Inc. (burn-in-board).
6. ITW Manufacture of 100%
Ampang unplasticized PVC American
Industries, Inc. shipping tubes for use
(formerly as packaging material
Ampang for semiconductor
Industries industries.
Phils. Co.,
7. MOOG Manufacture / 100%
Controls Corp. assembly of service American
(Phil. Branch) components.
8. Omed Manufacture of plastic 100%
Manufacturing trays to be used for re- Japanese
Corp. packaging of
9. Pycon Repair and 100% rfiguracion@pycontech.
Technology maintenance of PCB American com
(Phils.), Inc. (burn-in board).
10. Tara Manufacture of high 100%
Designs quality embroidered Canadian
(Formerly table linen, bedroom
Tara of and bedroom linen.
11. The Wood home decors 99.85%
Norwegian and gift items. Norwegian
Collection, Inc. 00.15%
12. TI (Phils.), Upgrading of test and 100%
Inc. quality production American
(replaced processes and
Texas production of Quad
Instruments Flat Pack (QFP).
(Phils.), Inc.)

For more information on Baguio City Economic Zone, you may contact:
Baguio City Economic Zone
Loakan Road, Baguio City
Tel. No.: (06374) 447-3334 / 3330
Fax. No.: (06374) 447-3331 / 3683
Email Add.:


Name of Product/Activity Equity E-mail Address

Company Participation
1. Allen Manufacture of 97% -
Garments garments and blankets. Taiwanese
Corporation 03% Filipino
2. Almatech Manufacture of 60% Filipino -
Manufacturing anodized / powder 40% Korean
Corp. coated frames for all
kinds of sporting bags,
child carriers, strollers,
harness snowshoes,
3. Arts 21 Corp. Manufacture of textile 100% Filipino
and beaded / sequined
4. Bahrain Production of glass 100% British
Fiberglass reinforced plastic
International products,
(Phils.), Ltd. environmental plants
and marine products.
5. Biggy & Manufacture of 91% Filipino
Bernie Mfg., Inc. embroidered patches, 09% Chinese
symbols and insignias.
6. Camp Summit Manufacture of heavy 97% Korean -
Corp. (formerly garments such as ski- 02% Filipino
c. Yusung wear, pants, jogging 01% Chinese
Industries, Inc. pants and other similar
b. Kor-Crest, Inc. products.
a. Majesty Wear,
7. Cases Manufacture and 100%
International assembly of musical American
Phils., Inc. instrument cases.
(formerly S.
8. Chun Chiang Manufacture of 99.62%
Enterprises Mfg. wearing apparel such Taiwanese
Co., Inc. as men's and ladies' 00.38%
trousers, etc. Filipino
9. Composite Manufacture of 95% Bahraini -
Designs fiberglass reinforced 05% Filipino
Technologies, products such as boat,
Inc. shower cabin and boat
10. Crismina Manufacture of denim No Data
Garments, Inc. jeans, jackets and Available
woven trousers for
men and ladies.
11. Da Won Manufacture of high 40% Korean -
Manufacturing frequency embroidered 60% Filipino
Corp. products and patches
for footwear and non-
wearing apparel.
12. Dong-In- Manufacture of various 97% Korean
Entech K1, Inc. types of sporting bags, 03% Filipino
backpacks and
garment products.
13. Dong-In- Manufacture of golf 60% Filipino -
Sundara Phils., bags. 40% Korean
14. Dunlop- Manufacture of tennis 64% British -
Slazenger balls. 36%
(Phils.), Inc. Australian
Sports Co.
(Phils.), Inc.)
For more information on Bataan Economic Zone, please contact:

Zone Administrator
Bataan Economic Zone
Mariveles, Bataan
Tel. No.: (06347) 935-4009 / 4004; 731-3272
Fax. No.: (06347) 561-2449 / 2451
Email Add.:


The Philippines is a major consumer, although minor producer, of gasoline

and oil products. Its growing population and increasing number of industries
demand a large bulk of these products to be able to continue and sustain its
activities. There has been a monopoly of gasoline and oil production in the past
years by the three biggest oil players, Petron, Shell and Caltex. In the last 5 years,
however, small industry players like Seaoil, Flying V, and Unioil were able to enter
the industry because of the Oil Deregulation Law. Their entry has paved the way for
competition and provided more opportunities for small businesses.

Other than gasoline and oil production, the companies ventured into other
business activities such as franchising, and operation of gift and grocery shops. For
example, Petron has “Treats” and Caltex has “Starmart”. An individual who wants to
invest in the gasoline station business now also has an opportunity to be in the retail
of grocery, gift and other items.

There are also opportunities in energy production, particularly in generation

of electricity. Electricity demand in the Philippines is expected to grow by around 9%
per year until the end of the decade, necessitating as much as 10,000 MW of new
installed electric capacity. The Philippines is the world's second largest producer of
geothermal power, and has a strong potential for wind generation.

A. Petron Corporation

Petron is the Philippines’ leading oil refining and marketing company. Its
refinery in Limay, Bataan has a capacity of 180,000 barrels per day – the
largest in the country. It can process imported crude oil into a full range of
petroleum products. It also operates a fully automated lubeoil plant in
Today, Petron supplies more than one-third of the country’s all requirements.
It sells fuel oil and diesel in bulk to customers in power generation,
construction, land and marine transport, fishing, and various manufacturing
sectors. It also supplies jet fuel to airlines. Likewise, it retails gasoline, diesel
and kerosene to motorists, public transport operators, and sells its own LPG
brand to consumers through a dealership network. Almost half of Filipino
households use the LPG brand “Gasul”.

Petron also offers motorists shopping convenience through convenience

stores called “Treats”. There are now over 32 Treats stores located in
selected service stations all over the Philippines.

Petron Suppliers’ Accreditation Procedure

1. Prepare a Letter of Intent addressed to

Materials Procurement and Services Department
Petron Corporation
32nd Floor, Petron Mega Plaza
358 Sen. Gil Puyat Avenue, Makati City

2. Include the following data in your letter

a. Company background, including nature of business

b. Product lines carried (identifying exclusively distributed items)
description / brand name / source / (name and location of
c. Companies supplied by your company for the past 5 years.
Indicate telephone numbers and contact person
d. List of major suppliers
e. Bank references
f. List of equipment

3. Attach the following documents

a. Agreements of distributorship for the exclusively and authorized

distributed products
b. Documents (purchase order, invoice, delivery receipt) showing
your experiences / transactions with companies you listed as
c. One page, blank original invoice with VAT registration
d. Brochures or manuals for products being offered (2 sets)
e. Certification of authentication from the Foreign Service of the
Philippines (for exclusive distributor only)

For certain product lines, submission of product samples for testing by

end users may be tested.

B. Seaoil Philippines

Over the years, Seaoil has continuously served the bulk of the fuel
requirements of multinational corporations, as well as those in the grass roots
level. This long and vast experience has equipped the company with an
enriched knowledge and understanding of the international and local market.
As a result, the company is able to produce innovative products and services
tailored-fit to the needs of the market, thus remaining uncontested in its claim
as the leader among the independent oil companies.

In 1980, Seaoil took a bold step towards its development when it opened its
first distribution depot facility in Mandaluyong, serving industrial requirements
for storage of bunker fuel oil. Later on, additional tanks were constructed to
serve the varied storage requirements of local and multinational companies.

What is in store in being a Seaoil franchisee?

• The Seaoil Station conforms to the pre-set designs formulated by Seaoil’s

highly-skilled architectural team.
• 24 hour technical support from Seaoil's Technical Service Group.
• A steady supply of competitively-priced, high quality petroleum products
that would ensure attractive margins and consistent volumes.
• Full marketing support and personalized service from Seaoil's aggressive
Reseller Department.
• The steadfast commitment of Seaoil Philippines Incorporated to support
the growth and development of the business.
• Acceptance into the exclusive family of successful Seaoil Dealers.

How to get a Seaoil franchise?

• Submit a letter of intent to Reseller Project Coordinator stating one’s

desire to become a Seaoil Dealer.
• Secure and fill out a Dealer Application Form.
• Provide a photocopy of one’s Community Tax Certificate to be used in
executing a Dealer Supplier Agreement and Equipment Lease Contract.
• Provide a photocopy of the TCT covering the lot area of the proposed
station site along with a vicinity map showing its location. If the franchisee
plans to locate the station on someone else's land, include a photocopy of
the Lease Contract entered into (all lease contracts should have
unexpired life of at least ten years).
• Submit a Bank Certification and/or Financial Statement indicating cash
and/or assets amounting to at least 3 million Pesos.
• Present a business plan indicating the target market and the amount of
volumes intended to be generated or ask Seaoil Reseller staff for a basic

Once the application to become a Seaoil dealer is approved, the franchisee

will be provided with the following to get the business started:

• Brand-New Underground Fuel Storage Tanks

• High-quality Fuel Dispensing Pumps
• Highly visible Seaoil signages
• Detailed Architectural Plans and Engineering Drawings
• Attractive Seaoil promotional items
• A basic Operations and Standards Manual to help the franchisee during
your initial stage of operation
• A special training course for the employees regarding effective forecourt

Details of the Dealership Agreement and its pre-requisites shall be discussed

with the franchisee. When all the requirements have been complied with, the
franchisee shall be asked to submit at least 10% of the Dealership Fee to fund the
actual evaluation of the proposed site.

For more information, please contact the following:

Marketing Department
Ground Floor, Meridien Bldg.
#29 Anapolis St., Greenhills, San Juan, Manila
Tel. No.: (632) 723-5272
Fax. No.: (632) 531-6462 or

933 Claro Castañeda St., Brgy. Namayan, Mandaluyong City

Tel. No.: (632) 531-9051 to 55
Fax. No.: (632) 532-6462

C. Pilipinas Shell

The Shell Marketing Retail of Shell Philippines oversees the retail trade and
Shell’s national service station network, and offers products and services to
our customers which includes: Shell fuels and lubricants, Select convenience
stores, Proserve lubrication service and Rainbow carwash. It offers the
following services to potentials retailers and dealers:

1. Shell Brand and other Trade Marks

2. Location - site selection and market studies
3. Layout and Fitting out service station
4. Building and equipment
5. Operating Standards
6. Training - Retailer and staff
7. Procurement Programs
8. Pre-opening Assistance
9. Grand opening assistance
10. Marketing Strategies
11. Research and Development
12. Business Counseling

Retailers of Shell products may expect to have a return of investments by 35

– 45% in 2-3 years with opportunity for business upgrading. A retailership
agreement covers a period of three years, and is renewable upon evaluation
of the retailer’s performance. Shell does not impose a franchise fee. The
initial investment usually amounts to P2-3 million, termed as Retailer’s Fee,
and covers the following:

1. stocks on fuels (2-3 day stock cover)

2. stocks on lubricants (1 month cover)
3. stocks in the Shell Shop/Select
4. lube/washbay equipment (change oil equipment, car washer, tools,
vacuum cleaner and others)
5. initial operating expense (salaries, utilities, uniforms, business permit and
6. power generator
7. allowance for provision of in house credit
The Application Process

Asia Corporate Select (ACS) handles the pre-screening of all applicants and
recommends to Shell qualified applicants.

Stage 1
1. Attend the applicant’s briefing and pay a processing fee of P3,300.00
(VAT included) for Stage 1 processing fee.
2. Third party to do Credit and Background investigation.
3. Applicant will be scheduled to take a Psychological Examination. ACS will
inform applicant regarding the schedule of psychological examination.

Stage 2
1. For applicants who pass Stage 1, they shall undergo an “In-depth
interview” and pay P3,300.00 (VAT included) as Stage 2 Processing fee.
2. Home interview will be conducted by ACS at applicant’s residence.

Stage 3
1. For applicants who pass Stage 2, they shall be interviewed by Shell’s
Retailer Selection Panel (RSP).
2. All applicants who pass the Retailer Selection Panel (RSP) will be entered
into the “Active Retailers Pool” and pay P5,500.00 (VAT included) as
processing fee for Stage 3.
3. All applicants in the “Active Retailers Pool” shall await station availability.
4. Retail District will choose from the pool of candidates to fill any
requirements for new Retailers. They shall be interviewed by the Retail
District to confirm if he is FIT for the trading area where the available
station is located.
5. The chosen applicant will then undergo an OJT program for one (1)
month and pay P10,000.00 (VAT inclusive) as Training Fee under Stage
6. Applicants who pass the OJT program will be formally appointed by the
Retail District as Retailer of a specific service station.
7. Shell retains the prerogative of appointing qualified applicants.

For more information, please contact the following:

Dealer Development Manager – Philippines

Retail Operations
Pilipinas Shell Petroleum Corporation
Shell House, 156 Valero Street, Salcedo Village, Makati City
Tel. Nos.: 0917-324-9417; (0632) 816-6501 loc. 6883
Email Add.:


Franchising is a business method whereby a franchisor (business owner or

manager) allows a franchisee (person or entity) to market products or services under
its name and trademark, and in strict adherence to a system he prescribes. Among
the benefits are:

• Minimized risk of business failure and higher chance of success;

• Savings on advertising costs with the use of a recognized trademark and,
pooling of resources with other franchisees; and
• Provision of detailed training and help by the franchisor to the franchisee
and staff.

Who may avail of franchising opportunities under Order Negosyo

• Any interested individual, either you or any of your family member/s, or

any group of individuals who may pool resources together; or
• A Filipino based or working abroad who wants to put up and operate his
own business here in the Philippines, as well as, those who are planning
to return to the Philippines.

How much investment is needed

Investment is dependent on the nature of the chosen franchise business.

Investment could range from as low as P200,000 to as high as P4 million. (The initial
investment to put up a Jollibee franchise ranges from P15M to P30M [US$300,000 to
US$500,000] depending on the store size and model. This includes construction of
the store, kitchen equipment and facilities, furniture and fixtures, air-con system,
signage and pre-operating expenses. Return of investment is usually between three
and five years.)

Factors that affect investment size are:

• Size/area of establishment
• Location
• Equipment
• Outlet type
• Stock inventory
• Office / space rental
• Insurance
• Permits and licenses
• Other working / operating expenses

In general, franchise investment includes:

• Franchise fee
• Marketing study
• Store design
• Layout assistance
• Training programs
• Leasehold improvements ( outlet construction )
• Equipment
• Pre-opening marketing expense, and pre-opening supplies

What assistance does the Mother Company extends

The franchisor or the Mother Company will provide continuing support to its
franchises including the initial training program. Before the franchisee gets started
with his business, he will undergo a Basic Operations Training Program (BOTP).
This, along with other programs, will enrich the franchisee's management and
analytical skills needed in the operation of the restaurant. The full time training
program lasts for 3 months and is conducted in a designated training store.
Other forms of assistance include:

• Store and layout and design, equipment specifications, furniture and

fixtures construction management.
• Creative advertising and marketing programs
• Product development
• Manufacturing and logistics facilities
• Consultative services for operations
• Manpower and personnel
• Recruitment and training of management team

How much is the expected profit

Income from the business is dependent on a number of factors such as:

location, market condition and type of supervision, advertising and marketing.
Depending on the franchise business, recovery period can be anywhere from 6
months to 36 months.

What are the basic requirements in applying for a franchise

• Letter of Intent (LOI) - containing the exact address of your proposed site,
your exact mailing address, contact numbers, etc.
• Vicinity Map of Proposed Site - for on-site evaluation
• Legal document certifying applicant's ownership of the site
• Detailed resume or bio-data



Benefits/ • Fastest • The Parcel • Low • A well-known
Advantages growing Select outlet investment brand in the
/ franchise in concept and zero pearl shake
Nature of salon needs meets the royalties for business
Investment nationwide personal and Mini-Carts • Provides pre-
• High market business • Unique - operation
demand and needs of Nacho King is training and
less capital consumers the leading continuing
investment with a name in support
• Established diverse array Nachos and services.
salon of mailing, Toppings. It • Marketing
operating shipping, is the first and
system with expedited company that advertising
proven deliveries provided support will
prototype and air toppings to be provided
• Supplier courier, and nachos and it by the
network and other also provides company, as
advertising business other well as,
and services-all products continuous
promotional in one such as research and
support convenient tacos, development
• Sufficient location. Mexican-style of its
area for • Handles pizza and products.
growth and 48% of the sweet pie. • No Royalty
realization of world's mail • Fast growing Fee
return of volume number of
investment • With fully franchises
• Continuous automated nationwide,
training of Track and which
staff Trace currently is
• Easy system pegged at
management • With 150
system 24hours- franchises.
7days a • A franchisee
week is not limited
support in just having
website one or two
• Operates a carts as long
transport and as he can
delivery fleet physically
of 202,000 and
vehicles financially
• Servicing manage the
more than operations of
265 the carts
countries • Established
worldwide brand name.
• Transports Nacho King
mail by air has been in
(15,000 operation
commercial since 1995
airplane • Easy to
Application 1. Letter of Refer to 1. Attendance to 1. Personal
Requiremen Intent with business space a Business appearance
ts 2X2 ID and site location Opportunity to the Head
picture and requirement Presentation Office
sketch of scheduled 2. Letter of
proposed every Intent
site/location Saturdays at including the
10am to 2pm desired
2. Sole 2. Filing of area/site
proprietor or Application 3. Endorsement
60% Form and letter (mall-
ownership of Submission type)
company or of necessary 4. Other
corporation requirements requirements
a. Community are to be
3. Financial Tax discussed
capability Certificate directly with
a. Able to b. Tin Number the company
shoulder c. Location Map
the d. Documents
franchise showing
fee, initial financial
cash standing or
investmen proof of
t and income (at
working least 2)
capital • Within 3
requireme mos. pay
nt of slip
Php1M or • Latest
less Income
4. Full Time Return
commitment • Within 3
a. Motivatio months
n to bank
succeed statement
and • Within 3
entrepren months
eurial credit
spirit card
b. Successf financial
ul track statement
record on
skills and
c. Willing to
Site/locatio • Minimum of A business • Mini cart = 2 Minimum area of
n 60 square space or a to 3 square location is 2 x 2
requirement meters present business meters square meters
• Significant located within • Mall cart = 4 for mall and road
pedestrian business/comme to 6 square type
traffic all rcial areas, meters
throughout malls,
the week universities, or
any high-traffic
trading areas.

A minimum area
of 10 sq. m. or
allocated area to
receive mails
and packages.

Parcel Select
outlet has a
territory that
ensures no other
Parcel Select
outlet will be
placed in the
determination of
size of protected
territory varies
per location.
This is subject to
zoning and
market research,
determining the
volume of
business that
can be
generated per
immediate area.
Investment 1. Franchise The estimated Mini-Cart = P32, Franchise Fee:
Costs fee: initial investment 500.00/P42, 1. International
Php200,000 is ranging from 000.00 Franchise =
• Includes use P200,000 to US$5, 000.00
of name, P250,000 Mall-Cart =
service P149, 000.00 2. Local
marks, salon Breakdown: with monthly Franchise =
system, staff 1. P75,000 for 1 royalty of P2, P24, 000.00 +
evaluation year 250.00 P25, 000.00 as
and training, accreditation cash bond to be
salon design applied for
and other 2. P25,000 for goodwill, repair
services that training and commitment.
are incidental The cash bond is
to franchise 3. P50,000 for refundable upon
operation Initial Marketing termination of
Supplies and agreement.
2. Initial Inventories
franchise Other Expenses:
deposit: 4. P20,000 Initial Expenses
Php10,000.0 consumable Construction or
0 deposit for Rental Deposit
• Valid for 2 Domestic Signage
months; non- Shipments Equipment
refundable Inventory
5. P30,000 Uniforms
3. Security consumable Training
deposit: deposit for Insurance
Php50,000.0 International Business
0 Shipments License/Permit
• Refundable Working Capital
after the term 6. P50,000 Salaries
budget for fax Utilities
machine, Maintenance and
weighing scales, Repairs
office supplies, Supplies

*Actual costs
vary depending
on individual
locations and
Return of 6 months to 2 Not indicated 4 months or Not indicated
Investment years shorter
depending on
the following

Franchise 5 years Not indicated Franchise is non- Not indicated

Term transferable.
Observance of
standard pricing
among Nacho
King franchises
with the approval
of the Company.
Contacts Reyes Tel. Nos.: (632) Nacho King Zagu
and Haircutters 867- Poblete Manager, Sales
Addresses Franchise 8055/56/78/79 Compound Department
Director Interior 12 Brixton St.,
#2 Anonas St., E-mail Add.: 343 Interior, Barrio Kapitolyo,
Proj. 3 West Service Pasig City
1102 Quezon Road
City Sun Valley, Tel. No. (02)
Philippines Paranaque City 687-4403
Fax No. (02)
Tel. Nos.: Tel. No.: (0632) 687-4424
(632) 912-7359 821-7986 E-mail:
(632) 913-6250 Telefax: 822-

(0917) 479-6532 1935, 824-0029

(0979) 773-3856

(0632) 913-




Benefits/ Mister Donut has Low risk and Small The only
Advantage been in the hassle free capitalization professional
s/ Philippines for investment requirement bags, shoes and
Nature of more than 20 other leather
Investmen years. A US 36 imported Independent accessories
t born brand, candy varieties Entrepreneurial repair in the
Mister Donut has that are sold at management country
gone a long way an average of
in providing 45% discount Business All-season
customers not Experience not recession-proof
just great donuts Very low Royalty necessary business
and coffee. At Fee - 3% of the
present, it has Monthly Gross Full Franchiser's Over 165 outlets
more than 1,200 Sales + 1% support through nationwide
outlets Marketing Fund training
nationwide. programs,
Leading Retailer advance
A well-known of Candies and business
international food Confectioneries systems,
brand with strong distribution
TV Provincial center and store
advertisements operation is operation
and effective available guidance
sales promotions nationwide
A store is
Requires low Long shelf life of operated by at
capital products, usually least 8 store
investment (as between 6 personnel
low as P220T) months to 1 year
and low space for most of the Investment
requirement products. For includes
(min. of 4 sq. m. chocolates, shelf construction and
for cart spaces) life is between 3 renovation costs
mos. to 8 months of the store,
It requires no signage, minor
royalties and no Start-Up equipment, and
advertising fee Franchise merchandise.
on the gross Package for a
sales or any Candy Corner
other hidden Cart Operation =
charges P259, 750.00
• 18 candy
Easy to operate - bins (with or
No Cooking and w/o
no refrigeration dividers)
requirements • 1,000
pieces of
Free delivery of candy bags
goods to the • Cart with
franchisee’s Panaflex
shop. A special signage
arrangement can • Inventory in
Applicatio Letter of Intent Letter of Intent, • Must be Letter of Intent
n addressed to the which includes between the with sketch of
Requirem Business area of interest, ages of 21 location
ents Development addressed to: and 60 years
Manager, which old
contains the President
following: Candy • Willing to
Corner directly
• Applicant's Franchising manage the
interest to be Corp. operations of
a franchisee No. 3 E. the store
of Mister Rodriguez Jr.
Donut Ave. • Financially
• Applicant's Bagong Ilog, capable to
address, Pasig City invest
numbers and *Please include • Send Letter
e-mail (if any) at least three of Intent to:
• Proposed desired areas.
location Robinsons
address and Ÿ Comprehensi Convenience
vicinity map ve Stores, Inc.
(if any) Resume/Pers Franchising
onal Division
Information 3rd Floor Fortune
Sheet of the Building
Applicant 144 Pasig Blvd.,
Pasig City

Fax No.: (0632)

• Fax a vicinity
map or
sketch of the
site with
details, i.e.
store size, for
a feasibility
Site/locati Heavy Shipping cost Ministop stores Not indicated
on pedestrian foot for provincial require a
requireme traffic, like areas are to be minimum of 80
nt jeepney, tricycle, shouldered by square meters
and bus the franchisee. and maximum of
terminals, public Although 120 square
markets, shipping costs meters
shopping malls, have been
groceries, school proven to be Ministop can
canteens, minimal. provide a
churches, location for a
lobbies of office Provincial sites prospective
buildings, etc. are subject to franchisee
inspection and
evaluation of the
Investmen Capital P280, 000.00 = P1.2M to P2.8M Minimal capital
t Costs investment for a new setup, cart depending on investment
Mister Donut system the franchise required
Franchise varies
- package
according to the
- P500, 000.00 = Loan assistance
type of shop best counter system - helps you
fit the proposed
- secure a
location. - P1M to P1.5M = franchising loan
full size store from Bank of
Indoor Take Out Southeast Asia
Booth (BSA) or any
Approximately other bank
P220T for indoor
spaces In-house
measuring financing
approx. 4-6 sq. program -
m. (E.g. cart applies only to
spaces inside 56% of the total
malls) cost of
machinery and
Take Out Shop does not include
Approximately the franchise fee
P400T for and renovation
enclosed costs.
spaces Amortization
measuring 4-9 schedule are as
sq. m. follow: 12 month,
24 month and 36
Dine In Shop month
P700T or higher Franchise fee:
(depending on P200,000
store space and
extent of Equipment:
construction and P450-800,000
Mister Donut With training of
Dine in Shops personnel
require a floor (cashier and
area of at least sapatero)
25 sq. m.

(The figures
above are
inclusive of the
franchise fee,
security deposit,
signage, and
equipment to be
Return of The gross profit 6 months to 12 2-3 years Average payback
Investmen margin is 30%. months period of 2-3
t Per piece, the years with a
franchisee will profit rate of 20
earn P4.20 from to 40%
a regular donut
that sells for Buy-Back
P14.00 guarantee - Mr.
Quickie will buy
back the entire
package at a
amount if you
decide to give up
your franchise
within your first
year of operation

Franchise Mister Donut 4 years Franchise Store Not indicated

Term Philippines does Management
not grant Training is for
territorial one month.
exclusivity. New Included in the
shops may be training are
placed where systems know-
customers are how, store
not yet served. operations, and
Contacts Business President Robinsons P.O. Box 12964
and Development Candy Corner Convenience Ortigas Center
Addresse Department Franchising Stores, Inc. Post Office
s Mister Donut Corp. Franchising Emerald Avenue,
Philippines No. 3 E. Division Pasig City,
7th Floor, 80 Rodriguez Jr. 3rd Floor Fortune Philippines
Roces Ave., Ave., Building
Diliman, Quezon Bagong Ilog, 144 Pasig Blvd., Tel. Nos.:
City Pasig City Pasig City (632) 671-9542
(632) 910-3857
Tel. Nos.: (0632) E-mail: (632) 910-3856
373-1234 locals

3304/3201/3303 Fax No.: (02) Fax No.:

672-0923 (632) 671-9541
Telefax No.:
(0632) 373-7913 Email:
E-mail Address:
For In-person
Banner St.
corner Danny
Floro Street,
Bagong Ilog,
Pasig City



Benefits/ • Best salon • Manufacturer • Reputable • Goldilocks
Advantage services at and fast food Bakeshop,
s/ reasonable distributor of chain Inc. provides
Nature of prices men's and company almost
Investmen • The company ladies' • One of the everything to
t shall guide apparel and top run your own
the accessories corporations shop
franchisee with over 285 in the • Training
with regard to boutiques, Philippines programs;
the corners, and in Asia initial training
construction, franchise • Comprises of all crews is
list of outlets and three free of charge
suppliers, authorized segments; • Continuing
purchase of distributors in the advisory
salon the Hamburger service on
products, Philippines. chain promotional,
delivery and • BENCH (Jollibee); the business or
training operates Pizza-Pasta operational
schedule company- fast food problems
• Free training owned shops segment • Goldilocks
of in Guam and (Greenwich); Shop can
staff/stylists China, as and the either be:
well as other Oriental food 1. Bakeshop
franchise market – selling
outlets (Chowking) only
abroad. baked
• Proud of its products
fashionable 2. Full Store
high quality –
products at combina-
reasonable tion of
prices, which baked
gives the goods
brand a and
competitive Filipino
edge, even in dishes
the most • Among the
competitive top and
markets. dynamic
• Company will franchising
provide the companies in
following: the
• Store • Continuous
concept and development
design of new and
• Hands-On better
Training of products
• Marketing
Applicatio 1. Letter of 1. Letter of 1. For the 1. For the
n Intent with Intent franchisee: franchisee:
Requirem preferred city 2. Location map • Good • Good moral
ents or location of proposed community character and
2. Bank site standing reputation
certificate 3. Business • Strong • Strong
3. 2 x 2 ID Application leadership managerial
Picture Form (from and people capability and
4. Accomplishe Suyen) handling experience
d Business 4. Brief skills • Good
Application business plan • Willingness to financial
Form from 5. Bank devote time capability
B/Cut Certificate in managing • Risk taker
Corporation restaurant
5. Photocopy of • Successfully 2. Letter of Intent
Business completed
License of the required 3. Address,
existing training location and
business if program vicinity of
any proposed site
6. Map or 2. Application
sketch of form 4.
proposed Comprehensive
location and 3. Proposal resume with the
floor plan if containing following:
already the following
available documents: • Credit
• Letter of references
All available Intent • Latest
documents are (LOI)- Income Tax
to be containing Return
mailed/submitted the exact • Fixed assets
to: address of and liabilities
proposed • Proof of
Franchise and site, exact billing
Export mailing address
Department address, • List of
B/Cut contact organizations
Corporation numbers,
2214 Tolentino • 2X2 colored
St., Pasay City picture
address, 4.
etc., of
• Vicinity
map of
• Legal
Site/locati Not indicated Floor Area must Size of the Minimum area of
on be a minimum of property is 80 sq. m. for a
requireme 80 sq. m. dependent on Bakeshop and
nt the particular 220 sq. m. for a
Location: model to be full store.
developed in a
• Within a one- particular market Proposed store
stop mall with location is
supermarket, subject to
fastfood, company
cinemas, assessment and
complete analysis
tenant mix
and ample
• Within a high-
area near
offices, house
of worship,
schools and
colleges, and
areas such
cinemas and
Investmen P2.5M for a 80 P1M+ Franchise Ranges from For Bakeshop:
t Costs sq. m. salon Fee P15M to P30M P6-8M
• Franchise • Construction depending on For Full Store:
Fee - of the the store size P10-12M
P500,000 BENCH and model.
• Construction Franchise Includes the
Costs - Outlet and Included: following:
P1.4M Architect's Construction of
*the fee the store, • Franchise fee
franchisee • Store kitchen, • Initial
gets to select Equipment equipment and investment
among the (Aircon, Cash facilities, needed to put
list of Register, furniture and up a store
accredited Stereo, fixtures, • Initial
contractors of Mannequin, air-conditioning inventory
FIX BENCH etc.) system, signage
SALON • Government and pre-
• Salon permits and operating
Products licenses and expenses
– other pre-
P200,000 operating
• Salon expenses
Equipmen • Space
t– acquisition,
P160,000 rental
• Rental deposits and
Deposits advances
– • Beginning
P240,000 inventory
• Store
*This amount opening
represents 3 activities
deposit plus 3
rental with a
rental rate of
Return of Not indicated Not indicated Between 3-5 Not indicated
Investmen years
Rate of return is
dependent on
several factors
such as sales,
market potential,
investment and
Franchise Term of • Advertising - Not indicated 8 years
Term agreement is 8 Equivalent to
years but the a specific
contract is percentage
renewed of the
annually. After 8 Franchisee's
years, the FIX annual
may charge a
new franchise
fee the amount
of which shall be
determined on
the eighth year
of the
Contacts Franchise and Suyen Franchising Franchise
and Export Corporation Division 10/F Relations
Addresse Department 2214 Tolentino Jollibee Center Manager
s B/Cut St., Pasay City Building Goldilocks
Corporation San Miguel Ave., Bakeshop, Inc.
2214 Tolentino Tel. No. (632) Pasig City #439 Shaw
St., Pasay City 887-2311 Boulevard,
Fax No. (632) Network Mandaluyong
Tel. No. (02) 844-8150 Development City
887-2311 Manager for
Fax No. (02) North Luzon Email:
844-8150 9/F Jollibee

Website: Plaza Telefax No.
#10 Emerald
(0632) 533-2050
Ave., Ortigas
Center, Pasig

Manager for
South Luzon
9/F Jollibee
#10 Emerald
Ave., Ortigas
Center, Pasig

OIC, Network
Group for
Visayas and
2/F Jollibee P.
Del Rosario cor.
Pelaez Sts.,
Cebu City


Tel. No.
(632) 898-8181
Fax No.
(632) 634-1191


Education remains an essential key to solving many economic and social
problems of the country in the long term. While it is the role of the government to
provide access to educational services, it lacks much-needed resources to offer
these services to all of the populace. For this reason, many private establishments
have stepped in to offer education to selected sectors of the population, at the same
time taking advantage of the viable business opportunity it presents.

One of these is the establishment of day cares, learning centers and pre-
schools during the last decades. This has been brought about by the need of
working parents to put their children in reputable establishments, where the children
can be taken cared of in the absence of parents or guardians, at the same time they
are in a learning environment. Many parents also opt to send their children to
privately-run pre-schools because of the conceived “better” quality of education, as
evidenced by the availability of modern facilities, the student-pupil ratio, competence
of educators, etc.

Likewise, technical education has been an option for many Filipinos,

especially for those who cannot afford to take up 4- or 5-year courses. While it has
been made available for many years now, it has recently been “popularized” because
of the need for caregiver or ICT courses. The Technical Education and Skills
Development Authority (TESDA) is the government agency tasked to manage and
supervise technical education and skills development in the Philippines. One of the
directions set by the Authority is the registration of TVET programs to ensure that
they meet certain standards before these programs are offered to the public.


Staff Requirements

The following staff requirements are intended for owners/operators,

administrators, directors, principals, head teachers or school heads, as well as
classroom teachers and para-professionals who are involved in Preschool or Early
Childhood Education (ECE) of children 5 to 6 years of age.

Staff Requirements

1. Owner / Operator / • College degree in a discipline allied to education with

Proprietor at least 18 units of preschool education course

2. Administrator / • College degree in a discipline allied to education

Director / Principal / with at least 18 units of preschool education course
Head Teacher /
School Head • Preferably with a masters degree in education

• At least two (2) years of very satisfactory work

experience in a school set-up
3. Teacher • Bachelor of Science degree with specialization in
Family Life and Child Development or Early
Childhood Education or Kindergarten; or

• Bachelor of Science in Elementary Education with 18

units in Preschool Education and 54 hours of
practicum in preschool classes; or

• Bachelor of Arts/Science degree in discipline allied to

education, arts, nursing, anthropology with 18 units
of preschool education

Physical Environment

The standards for physical environment refer to the minimum requirement

for the school site, the physical facilities and the learning equipment for a preschool.

Structure of the Environment

School site in this standard refers to school site for Kindergarten only and
does not include grade school.

1. School site must have a minimum lot area of 500 square meters. The area may
be divided into a minimum of 140 square meters for the classroom and 360
square meters for the playground. This area is only good for not more than 4

2. Space for playground must be provided, otherwise, easy and safe access to the
nearest part or open space not more than 200 meters walking distance from the
school site may be presented as an alternative. This arrangement must be
approved in writing by the authorized representative of the park or open space.

3. The school site must be used for educational purposes only. It must not serve as
the residence of the owner. It should not also be a “convertible school,” that is
during the day it is used as a school and after class hours converted into a
residence or used for commercial purposes.

4. Provision for office, teacher’s room, music and library rooms combining any two
of these must be considered.

Class Size

Ideal class size is 25-30 children per teacher. Class size may be increased
to 30-40 pupils per teacher if there is a teacher aide.

Classroom Size

Classroom size should be 1 ½ square meters per child.

1. Playground and Garden – Playground apparatus must be installed in the school
ground such as jungle gym, sandbox, slide, balance beams and simple
2. Classroom Equipment and Fixtures – Furniture such as tables, chairs, shelves
lockers and cabinets should be proportionate to children’s sizes.
3. Health Facilities and Provision for Safety – Health facilities such as toilet, safe
drinking and washing facilities must be adequate and suitable to children’s
height, size and other special needs. First aid kits must be available. A rest area
may be provided for the children. The area should be free from hazards and
proper and adequate lighting and ventilation should be provided.
4. Activity Centers – The classroom should have activity areas for the following:

• Personal Care and Grooming

• House and Garden Care
• Communication Skills
• Sensory-Perceptual and Numeracy Skills Corner
• Motor and Creative Development Corner


Day Care Centers are widely operated not only by the local government units
but by the non-government organizations, the private sector, national government
agencies, people’s organizations and other social welfare development institutions.

There are several laws and policies that mandate the setting-up of day care
service. Republic Act No. 6972 provides for the establishment of Day Care Centers
in every barangays. Executive Order No. 441 directed all government agencies and
government-owned corporations to provide day care services to children of their
employees below five years of age. Since the passage of the Local Government
Code, the operation of day care centers has been devolved to LGUs.

Nature and Objectives of Day Care Service

Day Care Service is the provision of supplementary parental care to 0-5

years old children whose parents have difficulty in fully taking care of their children
because of work or other legitimate reasons.

The provision of the day care service may vary in form and settings as
follows, depending on the needs of a specific community:

1. Day Care Centers – community or workplace-based facilities for children

3-5 years old

2. Center Based Infant Care or Child Minding Centers – are for children
ages 0-3 years old with provision for the conduct of stimulating activities
and feeding

3. Supervised Neighborhood Plays – are for children 2-5 years old that
facilitates the conduct of play activities

4. Family Day Care Centers – provide 0-5 years old children with temporary
care in the home of an accredited family child care worker
Procedures in the Accreditation of Day Care Centers and Day Care Workers
The Department of Social Welfare and Development, consistent with the
mandate of Republic Act No. 6972 prescribes the minimum criteria for accreditation
and licensing of Day Care Centers (DCC) and Day Care Workers (DCW).

1. All requests for DCC/DCW accreditation assessment shall be forwarded

to the DSWD Field Offices.

2. Accreditation assessment includes interviews with the Day Care Worker,

interviews with members of the parents committee, record review
(technical, administrative and program), observation of session,
assessment of DCC facilities and program materials.

3. Upon favorable assessment by the authorized accreditors of DCCs and

DCWs with supporting documents, certificates and identification cards
shall be issued by the DSWD Field Directors in accordance with the
standard rating scheme.

Accreditation Rating System

Areas of Assessment Expected scores

I. Stability of Support 20 points
II. Physical Facilities 20 points
III. Qualities of Day Care Worker 35 points
IV. Program Service Contents/ Quality of 55 points
Delivery & Presentation
V. Availability of Program Materials/Visual 35 points
VI. Availability and Utilization of Records 35 points
TOTAL 200 points

Star Rating Equivalent

Star Rating

5 stars
5 years
4 stars
4 years
3 stars
3 years
2 stars
1 star

4. For those with five (5) star rating, the accreditation is valid for five (5)
years; four (4) years for four (4) stars; three (3) years for three (3) stars.
Day Care Centers with 1 and 2 star rating shall not be issued
accreditation certificates but instead shall be continuously provided
technical assistance until they are able to meet the set standards.

Day Care Workers Qualification

The following are the required qualifications of a person who shall provide
substitute parental care to children aged 5 years and below left under the custody of
day care centers:

1. Male or Female, between 18-45 years old

2. Must have at least 2nd year college education
3. Has relevant experiences and interest in working with children
4. Has good moral character with certification issued by the Barangay
5. Must be physically, emotionally and mentally fit based on the following:
a. Physical examination by a licensed physician
b. Radiological examination
c. Dental evaluation
d. Psychological assessment
6. Has undergone training on Day Care Service or Early Childhood and
7. Willing to undergo annual medical examination
8. Willing to handle two shifting a day at 3 hours per session

Minimum Standards for Day Care Center and Day Care Worker

1. Structural Design

The Center must be in a separate single story structure or in the ground floor,
if occupying 2 or more story building and must conform to safety building
standards with updated fire and safety certificate. It must have accessibility
features for physically disabled or special children as provided for in B.P. No.
344 or the Accessibility Law. Adequate lighting and ventilation, separate
indoor toilets, washing facilities and safe drinking water should be provided.

2. Location

The site must be far (at least 200 meters) from high risk areas such as rivers,
dump sites or main thoroughfares. It must also be located away from
gambling dens and other ill-repute establishments. A space for playground,
communication and community welfare facilities must also be provided.

3. Space

The site must provide enough indoor and outdoor space for every child to
move freely for their social, cultural, recreational and physical activities.

4. Furnishings

Indoor furnishings must be safe and proportionate to children’s sizes to allow

for comfort and relaxation. Avoid toys that are made of non-toxic materials
and have removable parts or sharp edges that may harm the children. The
site should always be clean and safe for floor activities
The Center should provide for an updated first-aid medicines and supplies
stored beyond the reach of the children. Functional and safety equipment
such as fire extinguishers should be provided.

5. Services

The Center must provide for activities geared towards the holistic
development of the child, such as free and structured indoor and outdoor
play; news sharing and story telling that promotes good values and character;
and arts, crafts, games, etc. that promote physical, mental and creative

Annual health services for the child such as physical and laboratory
examination, oral and dental examination and immunization should be
provided. The provision of first-aid management to the child is also expected.

The conduct of regular counseling of parents and caregivers on child

development, responsible parenting, and health education is likewise
encouraged. Sustained participation of parents in the management of the
center is preferred.

6. Program Materials

Day care workers shall make use of program materials that will enhance the
physical, social and cognitive development of the child particularly those that
are intended for spiritual development, family life orientation, music, arts and
crafts appreciation.

For more information on the setting-up of Day Care Centers, please contact:

Standards Regulation Unit

Department of Social Welfare and Development
389 San Rafael cor. Legarda Sts.
Sampaloc, Manila
Tel. No.: (632) 734-8619


TRAINING (TVET) PROGRAMS (e.g. caregiver schools / ICT schools)

The Technical Education and Skills Development Authority (TESDA) is the

government agency tasked to manage and supervise technical education and skills
development in the Philippines. In the performance of these functions, it shall provide
direction, policies, programs and standards towards quality technical education and
skills development. One of the directions set by the Authority is the registration of
TVET programs to ensure that they meet certain standards before these programs
are offered to the public.

Unified TVET Program Accreditation System (UTPRAS)

UTPRAS is a two-stage process of quality assurance, which involves the

1. Program Registration – TESDA prescribes the mandatory registration of
programs and courses to ensure that they comply with the minimum
requirements prescribed in its Training Regulations. Registration,
however, is compulsory, with or without Training Regulations. An integral
part of Program Registration is the Monitoring of Registered Program for
continuous compliance to standards.
2. Program Accreditation – A voluntary process of institutional quality
assurance whereby an institution installs quality management system in
its operation and shall be assessed by qualified assessors to determine
levels of recognition under the Philippine TVET Quality Awards.

Programs which need to be registered

1. All TVET programs offered by public and private institutions, including

programs offered by enterprise-based training centers, provided that
programs offered are fee-charging and open to the public.

2. All TVET programs in industrial trades and crafts, agriculture, fishery,

services and home industries;

3. All special programs with short-term duration and are fee-charging, e.g.
English language for special purposes, courses which caters to the
performing artists (local and abroad), caregiver, security, among others;

4. TVET programs with permit and recognition certificates granted by the

Secretary of Education;

5. Apprenticeship programs undertaken by private enterprises shall be

authorized on the basis of existing apprenticeship guidelines. Compliance
with apprenticeship guidelines is considered as having the effect of UTPRAS

6. TVET institutions with registered TVET programs which they desire to

provide under the dual system shall be accredited as dual training system
institutions under the guidelines implementing Republic Act No. 7686 in order
that incentives provided for in the law may be availed of by concerned TVET

7. A module of employable competency or a set of modules may be registered

as a TVET program.

Documentary Requirements for Registration

1. Corporate and Administrative Documents

• Certified Board Resolution to offer the program signed by the Board
Secretary and attested by the Chairperson (private institutions only)
• SEC registration must specifically cover the training delivery site
(private institutions only)
• Articles of Incorporation – primary purpose of Institution must mention
Technical Vocational Education and Training (private institutions only)
• Current Certificate of Ownership/Contract of Lease of building
(covering at least five years)
• Current Fire Safety Certificate

2. Curriculum and Program Delivery

• Curriculum document complies with the competency standards where
they exist (e.g. in the training regulations). If competency standards
do not exist, the curriculum document must include the Philippine
TVET Qualifications Framework level, the course/subject/unit titles,
learning outcomes and performance criteria)
• Course and subject descriptions are directly cross-referenced to the
competency standards in the training regulations where these are
• Curriculum document specifies the equipment, tools and consumables
necessary to deliver the program
• Curriculum document specifies the instructional materials (such as
reference materials, slides, videotapes, Internet access and library

3. List of Faculty and Non-Teaching Personnel

• Updated list of faculty with their qualifications, areas of expertise,
knowledge and skills upgraded and, seminars attended (attach
supporting evidence such as copies of certificates and contracts of
• Updated list of non-teaching personnel with their qualifications (attach
supporting evidence such as copies of certificates and contracts of

4. Academic Rules
• Schedule and breakdown of tuition fees and other program costs
• Documented grading system
• Entry requirements for the program to comply with the relevant
training regulations (if applicable)
• Rules on attendance

5. Support Services
• Health services
• Career guidance / placement services
• Community outreach program (optional)
• Research that supports the operation of the school is carried out (e.g.
surveys, consultations, meeting with local industry and community
representatives, technical research (optional);

Registration Procedures

1. The applicant Training Institute shall file a Letter of Application with the TESDA
District / Provincial Office in whose area of jurisdiction the institution operates, at
least six (6) months before the institution will offer the program;

2. Applications with complete supporting documents shall be required to pay

application fee of P1,000.00 to be officially received for evaluation. Incomplete
applications shall be returned with proper notation of deficiencies.

3. The Curriculum Assessment Team evaluates the curriculum documents against

its relevance to the Training Regulation and the prescribed CBC documents
4. UTPRAS focal person with assistance from the regional/national technical
experts organizes ocular inspection of site facilities, tools, machine and
equipment and verifies faculty qualifications within three (3) months from receipt
of application.

5. The results of inspection, verification and assessment, together with the

corresponding recommendations of the TESDA Provincial Office shall be
forwarded to the TESDA Regional Office for consideration;

6. The TESDA Regional Office shall issue a Certificate of TVET Program

Registration upon payment of registration fee (P1,000.00) if it has complied with
the registration requirements. Registration certificates issued for programs
covered by existing training regulations shall be identified as Certificate of TVET
Program Registration (WTR) and those not covered or with no training
regulations shall be labeled Certificate of TVET Program Registration (NTR);

7. If the TVET Institution fails to meet the requirements for a TVET program that is
intended to develop a particular level of competencies, the program may be
adjusted to develop lower level competencies. If the TVET Institution meets the
requirements to offer the adjusted program, the appropriate Certificate of TVET
Program Registration shall be granted to the applicant institution;

8. The denial of the application for registration shall be subject to appeal to the
Office of the Director General, TESDA. The decision of the Director General shall
be final and executory.

The Accreditation System

The highest level of recognition shall be achieved by a TVET institution

through accreditation as Center for TVET Program Excellence via the Philippine
TVET Quality Awards (PTQA), whose rules and procedures are consistent with
those of those of the Philippine Quality Awards promulgated by the Productivity
Development Council.

Accreditation under the PTQA shall use the seven-point education criteria for
performance excellence:

1. Leadership
2. Strategic Planning
3. Student, Stakeholder and Market Focus
4. Information and Analysis
5. Faculty and Staff Focus
6. Process Management
7. Organizational and Performance Result
The PTQA shall have four levels of recognition, to wit:
• Bronze level for commitment to quality management
• Silver recognition for proficiency in quality management
• Gold recognition for mastery in quality management
• Platinum award for performance excellence

For schools offering a TVET Program, visit the nearest TESDA Office or the TESDA
website at for online registration, or please contact:

The Office of Formal TVET

5/F, TESDA Admin. Building
TESDA Complex, Taguig, Metro Manila
Tel. No.: (632) 817-4076 local 526 / 527 / 528
Telefax No.: (632) 818-7726



The assortment of Philippine products, the diversity of marine, natural and biological
resources, and various Filipino needs and preferences present an array of
opportunities for investors who wish to establish businesses in areas other than
Metro Manila or highly urbanized cities. Investing in different provinces and regions
is one strategy, which can make products and resources more accessible to the
countryside, minimize production and transportation expenses, and decongest the
high density urban cities, especially Metro Manila.

The Department of Trade and Industry Provincial Offices are promoting the growth
of at least one priority industry cluster in each province. For businessmen and
potential investors in search of business opportunities, DTI has identified some
specific trade and investment ventures in the priority industry clusters. Additional
business opportunities related to other industry sectors in the provinces may be
obtained from the Regional Resource Profiles of the Bureau of Domestic Trade
(RRP-BDT). The RRP may provide prospective investors with the list of available
raw materials, products and skills in the provinces.

DTI Province Focus Sectors

The following are the priority

industry clusters indicating the respective province of origin:

REGION Focus Sector

National Capital Region
Area I Tourism Sector (Business / Investors Guide)
Area II Packaging Material for Fresh Fruits, Flowers and Vegetables
for Export
Area III Footwear
Area IV Plastic
Cordillera Administrative Region (CAR)
Baguio City Education
Abra Bamboo-based Industry (Furniture, Processed Bamboo-Pole,
Bamboo Shoots as Food Items
Benguet Vegetable Processing (Canned Vegetable / Production &
Selling of Fresh Vegetable)
Ifugao Tourism
Kalinga Coffee Industry (Raw Beans)
Apayao Fruit Processing Industry (Banana, Pineapple)
Mt. Province Gifts & Souvenirs Industry (Woven Items: Rattan & Other
Vines, Nitto, Bagings, Hand Woven Yarn, Basketry / Basket)
Region I
Ilocos Norte Meat Processing
Ilocos Sur Furniture
La Union Furniture
Pangasinan Processed Milk Fish (Bangus)
Region II
Batanes Fish Processing (Products: Dried Fish, Bagoong, Patis &
Cagayan Wood Sector (Product: Furniture: Butaka, Sala Set, Bed,
Cabinet, TV Stand, Divan, Furniture Components: Door,
Door Knob, Ballusters)
Nueva Vizcaya Food Processing (Mango & Pineapple Juice, Mango &
Pineapple Puree, Banana Chips, Ginger Tea, Powdered &
Dried Garlic, Dried Onions)
Quirino Furniture (Butaka, Sala Set)
Region III
Bataan Fish Processing (Dried Fish, Smoked Fish, Bagoong)
Bulacan Fine Jewelry (Gold)
Nueva Ecija Fresh Fruits & Vegetable
Pampanga Meat Processing (abattoir as CCF to be managed by
Pampanga Meat Association)
Tarlac Mango Industry
Zambales Fresh Mango
Region IV
Oriental Mindoro Processed Banana
Laguna Gifts & Housewares / Holiday Decors
Aurora Coffee
Occidental Mindoro Seaweeds
Marinduque Buntal Handloom Weaving
Quezon Lambanog
Romblon Marble (Tiles, Novelty Items)
Rizal Coffee (Raw Beans)
Palawan Fish Processing (Lamayo)
Batangas Service Sector (Janitorial / Repair & Maintenance)
Cavite Processed Coffee
Region V
Albay Gifts & Housewares (Abaca)
Camarines Norte Formosa Fresh Pineapple
Camarines Sur Bamboo Industry
Catanduanes GTH (Lasa / Tiger Grass)
Masbate Aqua-Marine Processing
Regional VI
Aklan Loomweaving (Piña Industry & Abaca Sub-Sector)
Antique Muscovado Industry
Capiz Horticulture
Guimaras Lime Processing (Industrial Grade)
Iloilo Bamboo-based Product (Furniture & Furnishings)
Negros Occidental Gifts & Houseware (Ceramics, Woven Items, Mixed Medium)
Region VII
Bohol Loomweaving (Rafia, Mats, Table Cloth / Linen Products)
Negros Oriental Unitown Development (Education Support Service)
Siquijor Ceramics
Cebu Furniture
Region VIII
Leyte Abaca Production & Utilization (Finished Product: GTH /
Abaca Pulp)
Southern Leyte Vegetable Production & processing (Carrots, Cabbage,
Baguio Beans, Bell Pepper)
Samar Mussel Industry Development (Fresh Mussel / Vacuum
Fried / Shell Craft)
Eastern Samar Sinamay Production & Utilization
Northern Samar Coconut Coir Industry Development (Planters, Geotextiles,
Cocopeat & Holiday Decors)
Biliran GTH & Fashion Accessories (Pardan Mats & Bags)
Region IX
Zamboanga City Fish Processing (Canned Tuna / Bottled Sardines)
Zamboanga del Sur Rubber Sector (Industrial Rubber Products: Latex, Cuplump,
Crumb Rubber, Air Dried Rubber)
Zamboanga del Norte Bottled Spanish Sardines
Basilan Rubber Industry
Region X
Bukidnon Hi-value Vegetable Production (Project: Packing Shed w/
Cold Chain Capability)
Camiguin Tourism
Misamis Occidental Aqua-Marine Industry (Aqua-Business Center and Contract
Growing w/ Buy-back Scheme)
Misamis Oriental Handmade Paper
Region XI
Davao City Wood Products (Furniture / Construction Materials / Wood
Davao del Norte Food (Mango: Fresh, Puree, Jam / Banana Chips, Calamansi
Juice / Marmalade)
Davao del Sur Food (Fresh Mango, Cassava Chips, Banana Chips)
Davao Oriental Coconut-Based Items (Coco Milk, Fiber Board, Coco Peat)
Compostella Valley Wood Products (Resource-Based: Gemelina, Furniture,
Furnishings, Construction Materials)
South Cotabato Fish Processing
Saranggani Fish Processing (Dried Fish, Processed Bangus)
Region XII
Lanao del Norte Seaweeds Industry (Carageenan)
North Cotabato Rubber
Sultan Kudarat Palm Oil
Region XIII
Agusan del Norte Candish Banana (Fresh) / Food Processing: Banana Chips
Agusan del Sur Wood-Based Products (Match Splints & Cases, Furniture,
Sawn Lumber, Mouldings, Veneer & Other Building
Surigao del Norte Fine Jewelry (Gold)
Surigao del Sur Coffee Production (Raw Beans)


A Barangay Micro Business Enterprise (BMBE) is defined as any business

enterprise engaged in production, processing or manufacturing of products, including
agro-processing, as well as trading and services, with total assets of not more than
P3 million. Such assets shall include those arising from loans but not the land on
which the plant and equipment are located.

For the purpose of the Act, “services” shall exclude those rendered by any
one, who is duly licensed by the government after having passed a government
licensure examination, in connection with the exercise of one’s profession.

The Barangay Micro Business Enterprises Act of 2002

Republic Act No. 9178 or the Barangay Micro Business Enterprises Act of
2002 is a law signed on November 13, 2003 to encourage the formation and growth
of barangay micro business enterprises by granting them incentives and other

BMBEs are essential to the country’s economic development since they

effectively serve as seabeds of Filipino entrepreneurial talent. Thus, the Act aims to
integrate BMBEs in the informal sector into the mainstream economy.

Strengthening BMBEs would mean more jobs and livelihood, and a better
quality of life for Filipinos.

Major Incentives for BMBEs

1. Income tax exemptions from income arising from the operations of the

2. Exemption from the coverage of the Minimum Wage Law;

3. Priority to a special credit window set up specifically for the financing

requirements of BMBEs; and

4. Technology transfer, production and management training, and marketing

assistance programs.

Funding Agencies

The following government financial

institutions will provide a special credit window for BMBEs:

1. Land Bank of the Philippines

2. Development Bank of the Philippines
3. Small Business Guarantee and Finance Corporation
4. Quedan and Rural Credit Guarantee Corporation
5. Government Service Insurance System (for members only)
6. Social Security System (for members only)
Agencies that Assist BMBEs

The agencies assigned to provide assistance in the area of technology

transfer, production and management training, and marketing assistance are the

1. Department of Trade and Industry (DTI)

Bureau of Small and Medium Enterprise Development
Bureau of Domestic Trade

2. Department of Science and Technology (DOST)

Technology Application and Promotion Institute
3. University of the Philippines Institute for Small Scale Industries (UP-ISSI)

4. Cooperative Development Authority (CDA)

5. Technical Education and Skills Development Authority (TESDA)

6. Technology and Livelihood Resource Center (TLRC)

Who May Avail

Only registered BMBEs may take

advantage of the credit facility and other benefits granted under the law. This means
that the enterprise must have a Certificate of Authority which authorizes it to operate
as a BMBE.

How to Register

Any person, cooperative, or

association owning an enterprise that fits the description of a BMBE may register
with the Office of the Treasurer of the city or municipality where the business is

Registration Requirements

1. Duly filled-up application form (BMBE Form 01) in triplicate, signed by the
owner or manager of the entity for registration; and
2. Three passport size ID pictures


1. Accomplish BMBE Form 01 in triplicate and submit to the Office of the

Municipal or City Treasurer.
2. The Municipal or City Treasurer evaluates the application. The application
shall be processed within 15 working days upon submission, otherwise, the
BMBE shall be deemed registered.
3. A registered BMBE shall be issued a Certificate of Authority as proof of
registration, effective for the period of two years. The application is renewable
every two years.

Registration Costs

Registration and issuance of the

Certificate of Authority of the local government unit (LGU) is free of charge and shall
be done promptly. However, to defray the administrative costs of registering and
monitoring the BMBEs, the LGUs are allowed to charge a fee not exceeding P1,000.

For further inquiries, visit the

nearest DTI Provincial Office or contact:

Bureau of Small and Medium

Enterprise Development
Department of Trade and Industry
Tel. No.: (632) 897-7596
Fax No.: (632) 896-7916


BIMP-EAGA: A Blueprint for Cooperation

The East ASEAN Growth Area sub-regional forum for cooperation was
initiated in 1994 for the purpose of increasing trade, investment and tourism. At its
onset, the sub-region saw many encouraging cross-border initiatives between Brunei
Darussalam (the whole area), Indonesia (including all provinces of Sulawesi and
Kalimantan, Maluku and Irian Jaya), Malaysia (Sabah, Sarawak and Labuan) and the
Philippines (the Mindanao-Palawan regions).

The Philippine territories comprising the growth area benefited significantly

from over $300 million in private sector investments from Malaysia as well as
commercial air and sea transportation linkages set up between the region and the
rest of EAGA. Some 250 business and trade delegations from EAGA countries
visited Mindanao between 1994-1997, galvanizing the movement of goods, people
and services between the sub-region.

This cooperation agreement stalled in the wake of the Asian crisis in 1997
and various political troubles in the Philippines and Indonesia. Overcoming
seemingly insurmountable odds, BIMP-EAGA's members appear to be moving on
the renewed initiative with the urgency of a swiftly-recovering brotherhood of
similarly-motivated nations.

Recognizing the strategic importance of the growth area to the ASEAN,

particularly in pursuing the ASEAN Free Trade Area, government heads have
elevated EAGA to the national leadership level and strengthened transport, financial
and security linkages within the sub-region. The recent acceleration of the BIMP-
EAGA has engendered a deeper understanding of the need to engage a more
comprehensive private sector participation in the Philippine areas involved. Similarly,
the private sector must prepare itself to take full advantage of this opportunity for
business in an area which offers numerous advantages for mutual growth.

BIMP-EAGA: Business Opportunities

There are a great number of business opportunities still waiting to be tapped

in Mindanao, particularly in infrastructure development, high-value agro-industry,
financing services, natural resource-based manufacturing and tourism. Mindanao
possesses notable advantages in commodities such as banana and pineapple, and
in specific value-added products, such as processed tuna. In addition, Mindanao is
well-placed to excel in newer market niches such as IT-based services outsourcing.

Mindanao's food products prove to be exceptionally lucrative. With an

abundance in marine products, fruits and vegetables, seaweed and livestock,
Mindanao is not far from becoming the food basket of Asia, given efforts to harness
its growth potential. Other economically gratifying projects at stake include large-
scale farming, plantations and food processing.

Transportation services have been moving along quite efficiently. Direct

flights between Davao City and Kota Kinabalu have resumed. Flights between
Zamboanga and Sandakan, and Davao and Brunei are well underway. Fast ferry
services facilitate movement between Zamboanga and Tawau, supplementing the
existing service between Zamboanga and Sandakan.

Two framework plans are available for utilization in the development of

Mindanao in conjunction with the purposes and goals of BIMP-EAGA:

• The Mindanao 2000 Development Framework Plan (1995-2010) or

Mindanao 2000 formulated in 1995 with USAID assistance, a guideline of
the Government for the development of Mindanao.

• The Philippine National Development Plan (1999-2025): Direction for the

21st Century or PNDP 21, the latest national plan formulated in 1998.

According to these plans, the regions in Mindanao are economically

positioned as follows:

• Davao: component of Southern Mindanao Food Triangle and Agri-

Industrial Hub in BIMP-EAGA along with SOCSARGEN and Central
Mindanao (Mindanao 2000); export base to the EAGA market (PNDP 21)

• Northern Mindanao: North Coastal Agri-Industrial Corridor and Gateway

to domestic market (Mindanao 2000); Industrial Core in the north, whose
main component is the Cagayan-Iligan Industrial Corridor and Agri-
Exporting Base for the Pacific Islands (PNDP 21)

• West Mindanao: Marine Venture and Trading Hub of EAGA (Mindanao

2000); and Trading Center with EAGA (PNDP 21)

These positions are logical as far as they are based on the natural resource
endowments, geographically strategic locations, and other existing conditions of the
regions for development.


Key Area/s And Key Players Market Opportunities


• Diverse fruit trees • Farmers • Domestic • Investment in

that thrive in the • Traders • International - post-harvest
region • Manufacturers focusing on the facilities:
BIMP region as packaging center
well as China and and food
Northern processing

• Longest coastline • Resort and hotel • Local and foreign • Investment in

in the operators visitors tourism industries
Zamboanga • Fishermen/ • Sea transport,
Peninsula region "bankeros"/local shipping lines and
(Olutangga- a 25 divers land transport
-minute boat ride • Local tourist services
island from Ipil, guides
• Home to
thousands of
mysterious water
snakes (Walu-

• Corn production • Small corn • BIMP-EGA • Modern post-

farmers especially Brunei harvest facilities
• Traders
• Mill operators

• Livestock and • Poultry farms and

• Breeders
poultry horticulture
• Poultry farmers
• Traders


Key Area/s And Key Players Market Opportunities

• Development of • Hotel and Resort • Domestic and • Investment in
Samal Island and operators and international hotels and resorts
other potential industry workers • BIMP-EAGA • Investment in air
tourist spots in • Contractors and region and sea linkages
the region construction firms • US and Japan with other
• Land developers • China countries
• Australia particularly
members of the
• Infrastructure
development and
• Tourist spots,
resorts, inns
• Native delicacies • Entrepreneurs • Locals
and other food • Traders, farmers • Mass housing
products (dried projects for the
mangoes, durian whole of
candy, rambutan, Mindanao

• Expansion and • Importers and • Domestic and

liberalization of exporters of international
China's market goods and • Food production
merchandise and processing
• Port operators
• Pearls

• Investment in the
development of
• Freight and
• Export of
products from
• Novelty items member countries
from tourist • Mountain guides • Pearl farming
destinations such
as Mt. Apo and
the Philippine
Eagle • Shops for local
Conservation and foreign
Center tourists
• Small canteens
for travelers
• Novelty shops

Key Area/s And Key Players Market Opportunities
• Marine products • Fishermen • Domestic and • Investment in the
like tuna, • Traders foreign regions fisheries
shrimps, lobsters, • Exporters and aquatic
seaweed, etc. • Manufacturers resource
• Dried fishes and • Production and
other marine processing
products facilities for
marine products
• Seaweed farming
• Cold storage
• Drying facility


CALABARZON: A Blueprint for Development

A series of viable economic corridors outside Metropolitan Manila is under

way to becoming a fully urbanized area of development. The provinces of Cavite,
Laguna, Batangas, Rizal and Quezon have been tapped as active participants in and
beneficiaries of the Industrial Program under the Philippine Assistance Plan. The
concept of this program is the complementation of basic industrial projects, support
infrastructure, and adequate and well-trained manpower to meet the demands of
prospective occupant industries in Region IV. The strategy being employed is geared
to develop CALABARZON into an integrated urban-industrial, commercial,
educational and cultural center comparable to Manila.

The rapid spatial development of CALABARZON is characterized by the

predominance of large foreign export-oriented firms, other large domestic firms, and
small or cottage industries. The region's speedy urbanization may be attributed to
this, as well as to its proximity to the vibrant economy of Metro Manila.
CALABARZON: Business Opportunities

Immediately after the launching of Project CALABARZON, industrial

subdivisions began to mushroom in Cavite and Laguna. Spurred on by promises of
full infrastructure backing and various incentives offered by the Board of
Investments, 6 groups of big foreign and local business players poured some P6.6
billion in investments to develop industrial estates, which include the Carmelray
Industrial Park operating in Calamba.

Numerous other business opportunities sprouted as a result of the boom in

industrial estate construction, in addition to other existing conditions conducive to
vitalizing the spirit of entrepreneurship in the CALABARZON area.


Product Key Players Market Opportunities Contact Details

§ coffee beans § 16,000 § domestic § investment Provincial
coffee in post- Director
farmers/ harvest Aguinaldo
growers facilities: Highway, Bgy.
§ 22 coffee drying and Biga, Silang,
millers roasting Cavite
§ 22 coffee facilities,
traders packaging TN: (046) 414-
§ 10 center 0904, 414-01-88
processors FN: 416-4799
§ 1 distributor Email:


Product Key Players Market Opportunities Contact Details

§ gifts § 60 GHD § domestic: § raw Provincial
§ holiday manufactu- nationwide materials Caretaker
decors rers and sourcing Laguna Trade
direct § export: USA, § product and Tourism
exporters Hong Kong, development Center
Germany, § market 38 Purok, Km.
Italy, analysis 75 Brgy. Banca-
Canada, banca
Australia National
Victoria, Laguna

TN: (049) 559-



Products Key Players Market Opportunities Contact Details

§ catering § skilled § industrial § increasing Ruel R.
§ canteen persons are estates MEAP Gonzales
operation abundant locators and intervention Provincial
§ repair and due to the developers § services Caretaker
maintenance presence of in Batangas opportunity NACIDA Bldg.
§ utility TESDA Old City Hall
services Regional Compound
§ transport Training B, Morada Ave.,
services Center in Lipa City
§ electronic Batangas
data City TN: (043) 756-
processing § groups are 2330
§ building directly FN: 756-13-36
maintenance assisted by Email: dtibats@
§ laundry developers
services and locators
§ printing and under the
publication Micro
§ IT services Enterprise
§ security Assistance
services Program of
DTI and
under FPIP’s


Product Key Players Market Opportunities Contact Details

§ raw coffee § 96 coffee § local § establish- Provincial
beans growers ment of Director
(Robusta post-harvest 4/F Fairtrade
variety) facilities: Commercial
shelling, Center Bldg.
drying and Km. 23, Ortigas
hauling Ave. Ext.,
machines, Cainta, Rizal
trading TN: 660-6116,
center 656-6827, 660-
§ technical 59-86
training for Email: rizalpo@
new farmers/
§ water supply
installation in
2 areas
§ clonal
garden for

Products Key Players Market Opportunities Contact Details

§ lambanog § 3 major § domestic: § coconut tree Provincial
(indigenous distillers nationwide replanting Director
liquor based in the § export: § supplying 2/F Don Froilan
derived from vicinity Taiwan, boxes/labels, Lopez Bldg.
coconut sap) Japan caps and Granja corner
seals, paper Enverga Sts.,
bags and 4301 Lucena
promo packs City
§ transport
services TN: (042) 660-
§ warehousing 7656
§ trade FN: 660-7658
channels Email: dtiqzn@
§ buyers of
poles and
coco sap
§ product
§ existing
supplier of
materials for
GHD (buri,
§ existing
supplier of
materials for
(copra cake,
coco oil)
§ existing
exporter of
§ potential
suppliers of
raw material
for food




The influx of infrastructure projects in the Philippines has spawned other

business opportunities, particularly in the area of building management and
personnel services. Instead of hiring permanent or casual employees to perform
tasks, businessmen and investors opt to engage the services of duly established
companies or contractors whose functions are exclusively directed towards
performing building management activities.

Examples of building management services include:

1. Janitorial services
2. Security management
3. Plumbing, fumigation and air-conditioning services
4. Messengerial and liaison services
5. Other maintenance services (window cleaning, etc.)

Filipinos overseas may opt to establish ventures to provide building

management or personnel services for already established companies. Both
government and private enterprises in the Philippines engage the services of
building management companies as a more efficient alternative to hiring of individual


Business opportunities in assets and property management used to be

enjoyed only by banks and lending institutions when they foreclose or acquire assets
and properties from unpaid loans, or forfeited securities and bonds. The Philippine
National Bank has an Assets Management Group whose functions are exclusively
for database management, advertising and showcasing of the bank’s high-value
properties for sale to the public. The Bank of the Philippine Islands and Citigroup
Private Bank also have similar programs.

In recent years, assets and property management ventures have also been
undertaken by private individuals or companies who purchase from lending
institutions their foreclosed properties, and develop and re-sell them at a profitable

At present, there are business opportunities in managing the assets and

properties left behind by Filipinos who migrate overseas, or in managing property in
behalf of Filipinos based overseas who acquire property in the Philippines.
Properties and assets can be managed professionally by a manager or administrator
under a suitable contract with the absentee property owner.


The increasing number of motor vehicles in the Philippines has brought about
a need for more motor vehicle repair and maintenance shops, which are
indispensable in keeping transport vehicles in good operating condition. This need
provides opportunities for small and medium entrepreneurs to engage in this
particular type of service activity, which calls for employment of shop supervisors,
skilled workers and apprentices.

Vehicle repair and maintenance service shops/centers in the country are

generally classified as follows:
• service centers of branded vehicles, exclusively attached to dealers
• independent service centers accredited by DTI
• service centers attached to (or part of) franchised gasoline stations
• small independent motor shops, repair shops registered with DTI
• micro repair and motor service shops not registered with DTI

Dealers and distributors of branded vehicles such as Toyota, Honda, Nissan,

Mitsubishi, etc., as well as local assemblers of utility vehicles, have exclusive service
centers and/or a network of accredited service centers. Depending on the warranty
service period for a unit, owners would normally have their vehicles maintained at
these centers. At the end of the warranty period, however, owners would need to
have their vehicles service in other shops or service centers.

A typical vehicle maintenance service would include degreasing, rust

removal, painting, installing batteries, cleaning of tanks and air-conditioning units,
etc. The service may vary depending on the age of the vehicle, the mileage, level of
utilization, repair need, etc. Each of these repair and maintenance shops for motor
vehicles or “motor shops” provide different range of services.

The smaller ones may specialize in specific jobs such as electrical works,
body-building works, body painting, air-condition repair and maintenance, engine
overhaul, etc. The bigger shops may perform a wider range of services required by
any type of motor vehicle. Services done at the shops located within gasoline
stations would also be wide-ranging to include cleaning, engine tune-ups, wheel
alignment and balancing, etc.

In a motor service department of a major vehicle trading company, the types

of services are classified into “quick service” and “main repair service.” The quick
services included minor repairs and maintenance activities to be done within two to
three working hours. Some of the most common activities are:

• aligning and balancing and changing of tires

• replacement of automotive fluids or lubrication (e.g., motor oil, radiator
coolant, transmission fluid, brake fluid)
• replacement of non-repairable equipment (e.g., brake shoes/pads,
shocks, batteries, belts, mufflers, electrical components and accessories,
water pumps)
• replacement or charging of lead-acid batteries

The “main repair” services included those tasks and activities that require
one-day to one-week repair time. These would include:

repair of fixable equipment (e.g., brake calipers/rotors/drums, alternators,
fuel pumps, carburetors, power train components, airconditioning)
• repairing, rebuilding or installation of engines, and other major
components such as transmissions and differentials
• repairing, restoring and painting vehicle bodies
• replacement of underchassis and suspension parts/components

Overseas service contracting together with placement for overseas

employment offers business potentials specially for returning overseas Filipinos, who
have the experience of having lived overseas and becoming familiar with overseas
demand for labor and services. Knowledge of requirements overseas for the
recruitment of foreign workers also gives an advantage to overseas Filipinos
deciding to go into this business.

Who are qualified to establish recruitment and placement agencies

a. Filipino citizens or at least 75% of the capital stock is owned by a Filipino in case
of partnerships and corporations;

b. Those with minimum capitalization of P2 million (P2,000,000) in case of single

proprietorship or partnership and a minimum of paid-up capital of P2 million
(P2,000,000) in case of corporation; and

c. Those who are qualified by law or other government regulations to engage in the
recruitment and placement of Filipino workers for overseas employment.

Who are disqualified to establish recruitment and placement agencies

a. Travel agencies and sales agencies of airline companies

b. Those directly engaged in the business of a travel agency

c. Corporations and partnerships, when any of its officers, members of the board or
partners, is also an officer, member of the board or partner of a corporation or
partnership engaged in the business of travel agency

d. Those who have derogatory records such as, but not limited to, the following:

1. Existence of derogatory record or information in the National Bureau of

Investigation and the Anti-Illegal Recruitment Branch of the Philippine
Overseas Employment Administration;
2. Those who have prima facie finding of guilt for illegal recruitment and other
related cases;
3. Those convicted of illegal recruitment or other related cases and/or crimes
involving moral turpitude; and
4. Agencies whose licenses have been previously revoked or cancelled.

All applicants for issuance/renewal of license are required to submit

clearances from the NBI and Anti-Illegal Recruitment Branch of POEA
including clearances of their respective officers and employees.

e. Any official or employee of DOLE, POEA, OWWA, DFA and other government
agencies directly involved in the implementation of R.A. 8042 or the Migrant
Workers and Overseas Filipinos Act of 1995 and/or any of his/her relatives within
the fourth degree of consanguinity

f. Persons or partners, officers and directors of corporations whose licenses have

been previously revoked or cancelled for violation of recruitment laws

Procedure in License Application

1. Submit a letter of application to the Philippine Overseas Employment

Administration together with the following: (the Letter of Application is to be
addressed to the Licensing and Regulation Office)
a. A certified copy of the Articles of Incorporation or of Partnership registered
with the Securities and Exchange Commission, or Certificate of Registration
with the Department of Trade and Industry in case of single proprietorship;

b. Proof or financial capacity

1. Single Proprietorship/Partnership
• Income Tax Returns (ITR) of the proprietors for the past 2 years
• Savings Account Certificate showing a maintaining balance of not less
than P500,000.00

2. Newly organized corporation

• Savings Account Certificate showing a maintaining balance of not less
than P500,000.00

3. Existing corporation
• Verified financial statement
• Corporate tax returns for the past 2 years
• Savings Account Certificate showing a maintaining balance of not less
than P500,000.00

c. Proof of marketing capability

1. Special Power of Attorney or Recruitment Service Agreement

2. Manpower request/s or visa certification from new employer/s for a

minimum of 100 workers

3. Certificate from the Pre-Employment Services Office of POEA on the

existence of a new market

d. Clearance from the NBI and other government agencies of all persons
involved in the business

e. Undertaking from the applicant stating the following: (in case of corporation
and partnership, members are jointly liable with the company over claims
arising from employee-employer relationship)

1. Rigid selection process for qualified recruits

• The agency may require the worker to undergo trade testing and
medical examination only after the worker has been pre-qualified for

2. Full and complete responsibility for all claims and liabilities in connection
with the use of the license

3. Joint liability with the employer for all claims and liabilities in connection
with the implementation of the contract

4. Guarantee compliance with labor and social legislation of the Philippines

and the employing country

5. Full responsibility on the actions of its officials, employees and

representatives done in connection with recruitment and placement
6. Negotiate for the best terms and conditions of employment

7. Full disclosure of the terms and conditions of employment to the applicant


8. Deployment of at least 100 workers within 1 year upon issuance of


9. Provision of orientation programs to workers

10. Repatriation of workers and his belongings when needed

f. Individual Income Tax Return of the proprietor, partners,

stockholders/incorporators, for the past 2 years.

g. Bachelor’s degree and 3 years of business experience of the proprietor,

partner or chief executive officer.

h. List of all officials and personnel involved in the recruitment and placement
agency with the following:

• Designation of each individual

• Bio-data with 2 copies of their passport size pictures
• Clearances from the NBI and the Anti-Illegal Recruitment Branch of

i. Contract of Lease or Proof of Building Ownership, indicating the office

address and an office space of at least 100 square meters.

• The Administration shall inspect the site and facilities of the office before
issuance of license

j. Proof of publication of notice of the application with the names of the

proprietor, partners, incorporators and officers.

k. Certificate of Attendance of owner and/or chief executive officer in pre-

application seminar by POEA

2. Payment of P10,000.00 non-refundable filing fee and submission of proof of


3. Action upon the Application. Applications will be acted upon within 15 working
days upon receipt of an application. Denial of an application will result to
forfeiture of the filing fee.

4. Payment of Fees and Posting of Bonds. Upon approval of the application, the
applicant shall:
a. pay a license fee of P50,000.00;
b. submit an Escrow Agreement in the amount of P1,000,000.00;
c. confirmation of escrow deposit with an accredited reputable bank; and
d. a surety bond of P100,000.00 from a bonding company acceptable to the
Administration and accredited by the Insurance Commission.

5. Issuance of Provisional License which shall be valid for 1 year

For further inquiries on establishing recruitment and placement agencies, please

Licensing and Regulation Division

Philippine Overseas Employment Administration
POEA Bldg., EDSA cor. Ortigas Avenue, Mandaluyong City
Tel. Nos.: (632) 722-1159, 724-3665, 721-0650 or 721-9498
Fax No.: (632) 726-3265
Email Add:


Coconut production constitutes one of the four major sectors of Philippine

agriculture, the others being rice, corn and sugar. Coconut is planted in 2.7 million
hectares, which account for 23% of the total croplands, and 74% of commercial
croplands. About 85% of coconut is exported in the form of copra, coconut oil and
dessicated coconut. Coconut products are valuable as raw materials for a wide
array of industrial commodities, such as margarine, soap, lauric acid or glycerine-
based industrial chemicals. Coconut products where the country’s top raw material
experts in the 1970’s and the 1980’s, followed by mineral and forest products. Of
the total coconut exports, 39% went to the U.S., 46% to Western Europe, and the
rest to other countries like Japan and Russia.

The coconut industry is very important in the Philippines because one third of
the population depend on coconut production for livelihood. Recently, new coconut
products as well as new markets that offer excellent potentials have also been

Prospective investors may wish to put their capital into the industry. The
table on pages 39 and 93 list the specific industry activity from commercial
production to post-harvest to processing which are open to investors. Most of the
possible investments identified by the Agribusiness and Marketing Assistance
Service of the Department of Agriculture are in the form of joint venture or build-
operate-transfer schemes because of large project costs, which averages $2 to 5

The Philippine Coconut Authority (PCA), whose objective is to develop and

modernize the Philippine coconut industry through gainful production, processing,
marketing and utilization of the whole coconut palm and its derivative products to
improve the income, food security and sustainable development, offers the following
services to assist investors, managers and workers in the coconut industry.

1. Micro-Finance credit
2. Upgrade insurance
3. Basic commodities access
4. Farm diversification
5. Direct copra marketing
6. Bio-fuel development
7. Integrated farming system development
8. Bio-technology or varietal improvement and crop protection
9. Coconut farmers institution building
10. Industry and corporate promotions
For more information on PCA programs and services, please contact:

Philippine Coconut Authority

PCA Building, Elliptical Road
Diliman, Quezon City
Tel. Nos.: (0632) 928-4501; 921-8116
Fax. No.: (0632) 921-6173
Email Add.:


The Asian Institute of Management Policy Center’s City Competitiveness
Program pioneered a project to determine the competitiveness of Philippine cities. It
studied the capacity and capability of Philippine cities for effective governance,
human development and business growth, using research methodologies requiring
quantitative and qualitative data.

The project presents the complete ranking of fifty cities, and includes the
strengths of the top ranking cities per category. The publication serves as a
reference for knowing more about business and other conditions in Philippine cities.

The information about Philippine cities will be very helpful to investors who
are particularly interested in establishing their businesses outside Metropolitan

The AIM Policy Center used the following as criteria in identifying the
competitiveness of Philippine cities:

1. Cost of Doing Business

The affordability of doing business in urban centers is one of the primary

concerns of businessmen. Competitiveness of cities in terms of the relative
affordability of power, transportation, labor, and land provides selling points to
potential investors because low overhead and operating costs increases the
chances of having a profitable business venture.

The specific indicators are:

• Profitability of doing business is high

• Informal fees like bribes are non-existent
• Cost of power for commercial use
• Average rent of commercial space
• Average installation cost of new telephone lines
• Local minimum wage

2. Dynamism of Local Economy

Cities are vital hubs for national economic development because they
function as centers of economic development. The strength and overall
attractiveness of the cities economy for business have great impact to its

The specific indicators are:

• The city’s revenues will considerably increase in the next six months
• The city’s regulatory environment such as licensing procedure and
fees, taxes and other regulatory requirements, is conducive to
• Tourism is vibrant
• Average household income
• Local inflation rate
• Percentage of top 200 companies in the city
• Population vs. fast-food chain locators
• Market size
• Consumer Price Index
3. Linkages and Accessibility

Proximity of urban centers to other growth areas and the availability of

business support services provided by the local and national governments
are other aspects that businessmen consider before investing in a city.
Investors find it relevant that a city’s accessibility to secondary markets is vital
because nearby growth centers serve as sources of revenues and raw
materials. Accessibility of support services in the city for enterprise are also

The specific indicators are:

• Raw materials and other production inputs are located near the city
• Transportation system for moving raw materials from domestic
sources to the city and finished goods to other domestic markets
works very well
• International entry and exit points such as airports, seaports, and
other transshipment points are located near the city
• Availability of support services, such as product or process
development, marketing, and business strategy making

4. Human Resources and Training

The presence of trainable and adaptive labor pool puts a city at the forefront
of business ventures. Businessmen are likely to invest in cities where there is
competent labor force and readily available knowledge support services that
will guarantee smooth operation of their businesses.

Some of the specific indicators are the following:

• Skilled labor needed is available

• Workers from the local pool are eager to develop their skills
• Curricula and academic programs in educational institutions equip
graduates equip graduates with basic skills needed by the local
• Number of vocational and tertiary educational institutions
• Available IT training programs
• Constructive relationship between management and labor
• Poor labor practices such as discrimination and harassment are

5. Infrastructure

Competitiveness of cities in terms of road networks, adequacy of transport

service, and the availability of information and communications technology
attract investments. The presence of good quality infrastructure is vital
because it affects the productivity and efficiency of enterprises.
The specific indicators are the following:

• City roads / road network and traffic management are well-managed

• Road and vehicle density
• Electric power is reliable
• Water supply is abundant
• Telephone lines, cellular phones and internet service providers are
adequate and reliable
• Waste management works well
• Number of banks

6. Responsiveness of Local Government Units to Business Needs

The ability of city officials to respond to the changing needs of business is

very important. Local governance is one of the vital shapers of urban
competitiveness. Good local leadership that practices participatory approach
in governance with strong adherence to accountability and transparency
attracts investments and fosters the dynamism and growth of enterprise.

Some of the specific indicators are:

• Securing business and other permits is simple and efficient

• City government is honest and transparent in its dealings
• Administration of justice is fair
• Policies and regulations in the city are reflective of business needs
• Business taxes imposed are reasonable
• City’s master development plan is appropriate to business sector’s
• Land use regulations, such as zoning, are reasonable and flexible
• Percentage of IRA to total LGU revenue

7. Quality of Life

A city’s livability is one of the primary considerations of residents and

businessmen before relocating in a city. The quality of life factor has been
increasingly considered as one of the yardsticks in determining which cities
have successfully developed and which have succumbed to the ills of
urbanization. The city should be an ideal place to live in aside from having a
business environment that is conducive for doing business.

The specific indicators are the following:

• The city, especially its roads and public open spaces, and open
bodies of water, is always clean
• Air quality in the city is clean
• The city’s rest and recreational facilities (cinemas, bookstores, mall,
etc.) are adequate
• Security environment is conducive for business
• Incidence of theft and murder per 100,000 population
• Hospital beds per 100,000 population
• Life expectancy

Competitiveness Ranking of Philippine Cities in 2003

Ran Small Cities Mid-Sized Cities Metro Cities

1 Koronadal Bacolod Marikina
2 San Fernando, La Union San Fernando, Pampanga Pasig
3 Tagaytay Cagayan de Oro Davao
4 Legaspi Batangas Makati
5 Sta. Rosa General Santos Las Pinas
6 Dagupan Iloilo Cebu
7 Tacloban Baguio Mandaluyong
8 Surigao Angeles Muntinlupa
9 Ormos Lipa Quezon City
10 San Carlos, Negros Iligan Mandaue
11 Naga Zamboanga Manila
12 Dipolog Butuan Lapu-Lapu
13 Olongapo Tarlac
14 Roxas
15 Malaybalay
16 Cavite
17 Puerto Princesa
18 Dumaguete
19 Pagadian
20 Ozamis
21 Cadiz
22 Oroquieta
23 Cotabato
24 Tagum
25 Marawi

For more information on the City Competitiveness Program, please contact:

AIM Policy Center

4th Floor, AIM Conference Center Manila
Benavidez cor. Trasierra Sts., Legaspi Village, Makati City



Doing business in the Philippines, either as single proprietorship, partnership

or corporation, calls for licenses or permits from government. An investor or
businessman needs to obtain a business license in the locality where he will
establish his business, as well as register his business with the Department of Trade
in case of sole proprietorship, or with the Securities and Exchange Commission in
the case of partnerships and corporations.


The documentary requirements in establishing a business or investment in

the Philippines include:

• For New Business

• Barangay Clearance
• Locational Clearance
• Fire Safety Inspection Certificate
• Electrical Inspection Certificate
• Sanitary Permit (for food related establishments)
• Pollution Clearance (for manufacturers)
• Cultural Tourism Affairs Office Clearance (for tourist-oriented
• TCT or Lease of Contract of Site

• For Renewal of Licenses or Permits

• Barangay Clearance
• Locational Clearance
• Previous year permit and official receipt for the present year

Registering with the Local Government

All businesses are required to secure a mayor's permit or municipal license

from the municipality or city where they are located. Various cities and municipalities
have different registration procedures. The following are the general requirements:

• Go to the Business Permit and Licensing Office of the city or municipal

hall within the area. Secure an application form from the Public
Assistance Office.

• Submit three copies of the form together with a sketch of business


• Support application with Certificate of Business Name Registration

from the DTI-NCR if you are using a firm name

• Proceed to the City Treasurer's Office for any payments to be made.

Present Mayor's Permit for issuance of municipal licenses
Note: Business Permits should be conspicuously displayed in the
business establishment
For further inquiries please contact the following: (for business/es in Quezon City
only; for other locality/municipality, please coordinate with the respective local
government units.)

Chief, Business Permits Division

Quezon City Hall
Elliptical Road, Diliman, Quezon City
Tel. No.: (632) 925-6045 loc. 204 / 206

Registering with the Department of Trade and Industry

The Department of Trade and Industry (DTI) administers the registration of

business names.

A business proprietor who wishes to start his/her own business needs to

register it with the DTI if he/she names it other than his/her own name. By registering
the business name with the DTI, it assures the proprietor that no other individual or
group may legally use the business name anywhere in the Philippines.

Procedure in Registering with DTI

4. Obtain application forms (duplicate copy), preferred name slip, and

index card from the Information Desk and fill these out completely.
Only the owner of the business is authorized to sign the forms.

5. Meet the following requirements:

• Must be a Filipino citizen and at least 18 years old. Filipinos

with names suggestive of alien nationality must submit proof of
citizenship such as birth certificate, Professional Regulation
Commission ID, voter's ID or passport. If the applicant has
acquired Filipino citizenship by naturalization, election, or by
other means provided by the law, he must have supporting
documents such as 1.) naturalization certificate and oath of
allegiance; or 2.) card issued by the Bureau of Immigration
and Deportation and affidavit of election.
• Two recent passport-size pictures

Note: Certain types of business may have other requirements:

• Service repair shops

• Real estate brokers
• Dental/Medical clinic/hospitals
• Pawnshops
• Manpower services
• Engineering services
• Architectural services
• Other related services provided by professionals

6. Proceed to the designated window for evaluation

7. Pay required fees at the cashier

- Registration and Processing fee
4. Single - P300.00
5. Corporation/Partnership/Cooperative - P500.00
• A penalty of P100.00 is imposed if the BNRS certificate is not renewed
within the three-month grace period from the certificate’s expiration date

8. Get priority number

9. Proceed to the waiting area and wait for the number to be called by
the examiners at windows 1-10

10. Business Name Certificate is released within 10-15 minutes upon


For more information about registration of business name, please contact:

Department of Trade and Industry - NCR

Ground Floor, DTI Main Building
361 Sen. Gil Puyat Ave., Makati City
or at designated satellite registration centers in selected cities in Metro Manila
Tel. No.: (632) 890-4854

Types of Requirements Applicable Fees


For Single 3. Must be a Filipino citizen, at least 18 Processing fee of

Proprietor years old P300 + P15
4. Two recent 2 x 2 color ID pictures of Documentary
applicant Stamp
5. For Filipinos whose names are
suggestive of alien nationality submit
proof of citizenship such as:
• Birth certificate
• Voter’s ID
• Passport
For Foreign 3. Certified true copy of the certificate of Note:
Investor (Single authority to engage in business in the
Proprietor) Philippines per R.A. 7042 issued by With additional
the DTI-NCR requirements on a
case to case basis
depending on
4. Certified true copy of latest business
actual examination
permit from the concern Local
and processing of
Government Unit (LGU)
the application

5. Alien certificate of registration (ACR)

updated for the current year and
present original copy of comparison

6. Accomplished DTI Form No. 17 under

R.A. 7042

7. Current written appointment of

Filipino Resident Agent

8. Clearance from other involved

agencies such as Department of
Science and Technology (DOST),
PNP, etc.

9. In case of alien retailer, current year’s

permit to engage in retail business
per R.A. 1180

For Corporation, • Filled-up application form Processing fee of

Partnership and P500
Cooperative • Certified photocopy of SEC and CDA
registration and Articles of Incorporation,
Partnership or Cooperative (by the board
of secretary)

• Board Resolution for the authorized

signatory, if signatory is not one of the

• Board Resolution for the registration of an

adopted name/branch with specific
address (if applicable)

For more information on the registration of business name, please contact:

Department of Trade and Industry - NCR

Ground Floor, DTI Main Building
361 Sen. Gil Puyat Ave., Makati City
or at designated Satellite Registration Centers in selected cities in Metro Manila
Tel. No.: (0632) 890-4854
General Registration Requirements

Investors setting up business in the country have to comply with the following
general requirements:

Types of Investments or Government Agency In Contact Information

Business Charge
Registration of corporations Securities and Exchange (632) 726-0931
and partnerships Commission
Registration of business Department of Trade and (632) 890-4901
name/single proprietorship Industry
Registration for availing of Board of Investments (632) 818-1831
incentives under Executive
Order 226 or the Omnibus
Investment Code
Registration with other Philippine Economic Zone (632) 891-6380
Investment Promotion Authority
Agencies for availing of (632) 897-1857, 898-1957
incentives Subic Bay Metropolitan (632) 897-1857, 898-1957
Clark Development (632) 811-5181, 811-
Corporation 5182, 811-5183
Cagayan Economic Zone (632) 636-5773, 636-
Authority 5778, 636-5780
Phividec Industrial Authority (632) 817-5330, 818-1338
Zamboanga Economic Zone
Securing Tax Identification Bureau of Internal Revenue (632) 981-7000, 929-7676
Number (TIN)
Securing locational Metro Manila Development (632) 882-4159, 882-
clearance/business permits for Authority or City Hall/ 0893, 882-0895
firms located in Metro Manila Municipal Offices in the
localities where the business
would be set up
Securing membership in the Philippine Health Insurance (632) 637-9999, 637-5643
government health care Corporation
benefits system
Securing an employer's SSS Social Security System (632) 920-6401, 921-
number 0660, 921-0825
Securing electric service Manila Electric Co. for (632) 631-2222, 631-1111
connection business in MERALCO
franchise area; or local
electric utility firms for
companies located in non-
MERALCO franchise areas
Securing water service Maynilad Water Company (632) 528-0670, 731-
and/or Manila Water 2555, 372-2748, 920-
Company and Local Water 5417; (632) 920-5581,
Utilities Administration for 920-5599
firms located outside Metro
Securing telephone services Philippine Long Distance (632) 171
connection Telephone Co.
BayanTel (632) 412-1212
DigiTel (632) 426-7212
Smart Tel (632) 888-1111
Globelines Tel (632) 521-7225

For quick assistance, please contact:

Board of Investments' One Stop Action Center (BOI-OSAC)

Tel. No.: (632) 818-1831
Email Add:

Operational Requirements

Certain requirements have to be complied with by the enterprise while in

operation, expansion and/or diversification. While in operation, the following need to
be accomplished:

Types of Investments or Government Agency In Contact Information

Business Charge
Reportorial requirements (i.e. Securities and Exchange (632) 724-8803
Audited Financial Statement, Commission
General Information Sheet)
amendment of articles of
Reportorial requirements (i.e. Board of Investments (632) 818-1831
Audited Financial Statement, Philippine Economic Zone (632) 891-6380
ITR, etc.); registration of Authority
business/expansion for (632) 897-1857, 898-1957
incentives Subic Bay Metropolitan (632) 897-1857, 898-1957
Clark Development (632) 811-5181, 811-
Corporation 5182, 811-5183
Cagayan Economic Zone (632) 636-5773, 636-
Authority 5778, 636-5780
Phividec Industrial Authority (632) 817-5330, 818-1338
Zamboanga Economic Zone
Regular tax payments Bureau of Internal Revenue (632) 981-7000, 929-7676
Registration of Customs Bureau of Customs (632) 527-4517, 527-4537
Bonded Warehouse (on
Expansion/ Diversification)
Opening of Letter of Credit Authorized Agent Banks
Export Declaration (Authority to Bureau of Customs - Export (632) 527-4517, 527-4537
Load/Certificate of Origin) Coordination Division
Information sheet for first-time Authorized Agent Banks
Payment of wharfage Philippine Ports Authority (632) 527-8356, 527-8136
fees/exemption from payment
Special Permits/Clearances for Selected Export Businesses

Export of products will need clearances and permit prior to every shipment:

Types of Investments or Government Agency In Contact Information

Business Charge
Clearance for export of animal Bureau of Animal Industry (632) 920-4066, 927-3205
and animal by-products For exotic animals, (632) 924-6031, 928-0805
endangered animals -
Protected Areas and Wildlife
Clearance for plant export Bureau of Plant Industry (632) 527-4446, 924-7761
Clearance for export of food, Bureau of Food and Drugs (632) 842-8429
drugs, and chemicals
Clearance/quota for coffee International Coffee
exports Organization Certifying
Clearance for quota allocation Garments and Textile Export (632) 890-4651, 890-4312
of garment and textile exports Board
Clearance for export of Bureau of Fisheries and (632) 374-2065, 371-1173
fisheries and other aquatic Aquatic Resources
Special documentation Department of Trade and (632) 890-4901
certificate for preferential Industry
treatment of handicrafts export
Export clearance for regulated Philippine Coconut Authority (632) 928-4501, 920-0398
coconut products (matured nuts
and seedlings)
Commodity clearance and Fiber Industry Development (632) 924-7985, 924-7986
license for fiber export Authority

Special Permits / Clearance / Registration

Special Permits / Clearance / Registration are required for the following

projects / activities:

Types of Investments or Government Agency In Contact Information

Business Charge
Various types of visas - Special Bureau of Immigration (632) 527-3259, 530-0721
Investor's Resident Visa
(SIRV), Special Retiree's
Resident Visa (SRRV), 47(a)2,
Treaty Trader's Visa, Pre-
Arranged Employment Visa
and its derivatives - Alien
Certification of Registration
(ACR), Immigration Certificate
of Residence (ICR), Emigration
Clearance Certificate (ECC),
and Special Return Certificate
Alien Employment Permit Department of Labor and (632) 527-3516, 527-
(AEP) Employment 3512, 527-2127
Clearance for garment and Garments and Textile Export (632) 890-4651, 890-4312
textile exporters Board
Registration for operation of Bureau of Customs (632) 527-4517, 527-4537
Customs Bonded
Manufacturing Warehouse
Environmental Compliance Environmental Management (632) 920-4425
Certification Bureau
Department of Environment (632) 929-6626, 929-8349
and Natural Resources
Projects involving land Housing and Land Use (632) 924-3384, 924-3389
use/conversion Regulatory Board
National Housing Authority (632) 928-4561, 923-0395
Department of Agrarian (632) 928-6821, 926-4398
Permit to construct/operate Department of Environment (632) 929-6626, 929-8349
pollution control devices and Natural Resources
Trademarks/Patents Intellectual Property Office
Registration of power- Department of Energy (632) 892-4619, 844-
generation projects 6384, 844-6386
National Power Corporation (632) 921-3541, 924-5200
Philippine Standard (PS) Bureau of Products and (632) 838-0545, 8380544
Quality Mark to ensure that Standards
locally-manufactured consumer
products conform to Philippine
national standards
Import Commodity Clearance Bureau of Products and (632) 838-0545, 8380544
(ICC) Quality Mark to ensure Standards
that imported consumer
products conform with
Philippine national standards
License-to-Operate for projects Bureau of Food and Drugs (632) 842-8429
which involve food, chemicals
and others
Registration of tourism projects Department of Tourism (632) 523-8411, 523-7314
Franchise for mass transit Land Transportation (632) 921-2616, 426-2508
operation Franchising and Regulatory
Telecommunications projects National (632) 924-4042, 424-
Telecommunications 2559, 426-8215
License/clearance for defense- Department of National (632) 911-5061, 421-6698
related projects Defense (632) 723-0401, 725-3245
Philippine National Police
Registration of advanced Department of Science and (632) 837-2071, 838-8376
technology Technology
Clearance for health-related Department of Health (632) 743-8301, 743-6107

Registering with the Bureau of Internal Revenue (BIR)

For taxation purposes, every business enterprise has to register with the
Bureau of Internal Revenue (BIR). The procedures in registering at the BIR are the
12. Secure a permanent record file number of Tax Identification Number
(TIN) from the BIR National Office in Diliman, Quezon City

13. Register the business/trade name at the nearest BIR office. Secure and
file an application form together with the following supporting papers:

• Mayor's Permit
• Certificate of Business Name Registration from DTI
• Articles of Partnership or Corporation
• Residence certificate

14. Secure authority to print books of account, invoices, receipts, and other
accounting records by filling out four copies of an application form with
attached draft copies of the material to be printed as well as copy of the
job order.

For more information on acquiring TIN and registering with the BIR, please contact:

Bureau of Internal Revenue

National Internal Revenue Building
Agham Road, Diliman, Quezon City
Tel. Nos.: (632) 929-7676, 927-2511
Fax No.: (632) 926-3420
Or visit the nearest BIR satellite offices and regional branches all over the

Registering with the Social Security System (SSS)

An employer or any person who uses the services of another person in

business, trade, industry or any undertaking must be registered with the SSS. Social,
civic, professional, charitable and other non-profit organizations, which hire the
services of employees, are considered "employers".

Overseas Filipinos under the Coverage of SSS

An overseas worker may be covered on a voluntary basis if he is employed in

a country that has signed an agreement with the Philippine government to include
Filipinos and their nationals in the social security coverage of either country, e.g.
United Kingdom.

A Filipino recruited by a foreign-based employer for employment abroad or

one who legitimately entered a foreign country (i.e. tourist, student) and is eventually
employed may be covered on a voluntary basis. He should not be over 60 years old.

He may also apply for coverage as an OFW, if he was an SSS member and
was separated from employment. If he is already paying voluntarily, he may also
apply to change his membership status to a voluntary OFW member.

General Requirements in the Application for SSS

A person registering with the SSS for the first time as an employee, self-
employed, non-working spouse or OFW should submit, together with the SSS
registration form, a photocopy of his/her birth or baptismal certificate or passport. In
the absence of these documents, any two of the following documents:
• record of employment
• GSIS member's record
• certificate from the National Archive
• birth/baptismal certificate of children
• marriage contract
• driver’s license
• school records or voter’s ID card
• Alien Certificate of Registration, or
• joint affidavit of two disinterested parties attesting to the correct name and/or fact
of birth of the person concerned

A married person should also submit his or her marriage contract upon
registration. If reporting children, he or she should submit the birth or baptismal
certificate of the child, if legitimate; proof of filiations showing acknowledgment of the
child, if illegitimate; or decree of adoption, if legally adopted.

The original or certified true copies of these documents should be presented

to the SSS for authentication.

An OFW should accomplish SSS Form OW-1 (Overseas Worker Record

Form) and submit it together with the general requirements.

For more information on the registration at SSS, please contact:

Social Security System

SSS Bldg., East Avenue, Diliman, Quezon City
Tel. Nos.: (632) 920-6401, 920-6446


The registration of partnerships and corporations is one of the principal

functions of the Securities and Exchange Commission (SEC). The Commission is
the lead government agency that regulates and supervises the operation of all
corporations, partnerships or associations who are the grantees of primary
franchises and/or a license or permit issued in the Philippines.

Online Registration through the SEC-iRegister

In compliance with Republic Act No. 8792 or the E-Commerce Act, the SEC
has made available to the public the convenience of online registration through the
SEC-iRegister system. It is a quick, affordable and user-friendly service that is
available to the public 24 hours a day, 7 days a week. An easy, step-by-step guide
allows everyone to use the web-based registration system from the convenience of
their desktop. With SEC-iRegister, clients can do the following online:

Ÿ Verify proposed corporate name with records division;

Ÿ File their application for registration;
Ÿ Pay the appropriate registration fees online;
Ÿ Deposit the paid-up capital online; and
Ÿ Receive notice of approval within the same day.

SEC Express Lane Registration

Under the SEC express lane system, applications for registration of articles of
incorporation and by-laws and articles of partnership with cash payment of
subscription are processed upon presentation of all documents. The certificate of
registration is released two days after payment of filing fee.

The following are the steps in SEC registration:

• Verify proposed corporate name with records division. Reserve name in

case incorporation documents will not be submitted within 3 days.
Reservation for a fee is up to 30 days.

• Present accomplished express lane forms/documents to the express lane

unit of the Company Registration and Monitoring Department (CRMD) at
SEC for pre-processing. Express Lane forms are available at the Express
Lane Center

8. Business requiring a secondary franchise for their prior

9. Upon receipt of favorable endorsement, stamping of "approved
for payment" follows if all papers are found in order by processing

• Proceed to Cashier for payment of filing fees.

• Cashier forwards the application for records set up assignment work cell,
sorting, encoding, and assignment of registration number. Then
forwarded to the Express Lane Unit for recording, typing of certificate of
incorporation and review.

• Express Lane Unit forwards the application with certificate of

incorporation to the director for signature.

• Approved documents are updated through the computer for Work

Assignment Status (WAS).

• Claim the certificate of incorporation at the Releasing Unit, Records

Division upon presentation of receipt of payment of filing fee.

Type of Business Requirements Business Classification

A. Corporations • Name Verification Slip 9. Mass media except
with 100% Filipino recording
Equity • Articles of Incorporation 10. Retail trade enterprises with
and By-Laws paid-up capital of less than
• Treasure’s Affidavit 11. Cooperatives
12. Private security agencies
• Statement of Assets and 13. Small-scale mining
Liabilities executed under 14. Utilization of marine
oath by the treasurer of the resources
corporation 15. Ownership and operation of
• Bank Certificate of Deposit 16. Manufacture, repair,
stockpiling and/or
• Authority to verify Bank distribution of nuclear
Account weapons, biological,
chemical and radiological
weapons and anti-personnel
• Registration Data Sheet
17. Manufacture of firecrackers
• Other requirements for
and other pyrotechnic
specific businesses

B. Corporations In addition to (A) and (B) also • Financing companies

with more than 40% submit application form: regulated by the
Foreign Equity Securities and
3. Form F-100 – For new Exchange Commission
corporations (SEC)
4. Form F-101 – For • Investment houses
registered corporations regulated by the SEC
increasing its foreign equity
to more than 40%
5. Form F-102 – For
registered corporations
with more than 40% foreign
equity increasing further
the percentage of such
6. Form F-105 – For new
partnership with foreign
7. Form F-106 – For
registered partnership with
foreign equity increasing
further the percentage of
foreign equity
C. Corporations The following in addition to the 3. Exploration, development
with 60% Filipino – above: and utilization of natural
40% Foreign Equity resources
Proof of Inward Remittance by 4. Ownership of private lands
non-resident aliens and foreign 5. Operation and
corporations or their affidavit management of public
manifesting intention not to utilities
register investment with BSP 6. Ownership/establishment
and administration of
Note: All documents signed educational institutions
outside the Philippines must be 7. Culture, production, milling,
duly authenticated by the processing, trading
Philippine consular office in the excepting retailing, of rice
place where they were and corn and acquiring, by
executed. barter, purchase or
otherwise, rice and corn
and the by-products thereof
8. Contracts for the supply of
materials, goods and
commodities to
government-owned or
controlled corporation,
company, agency or
municipal corporation
9. Manufacture, repair,
storage, and/or distribution
of products and/or
ingredients requiring
Philippine National Police
(PNP) / Department of
National Defense (DND)
10. Manufacture and
distribution of dangerous
11. Sauna and steam
bathhouses, massage
clinics and the like
12. All forms of gambling
13. Domestic market
enterprises with paid-in
equity capital of less than
the equivalent of
14. 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
D. Corporations Same requirements with Advertising
with 30% Foreign Corporations having 40%
Equity Foreign Equity

E. Corporations -do- • Private recruitment,

with 25% Foreign whether for local or
Equity overseas employment
• Contracts for the
construction and repair of
locally-funded public works
• Infrastructure/
development projects
covered in RA 7718
• Projects which are
foreign funded or
assisted and required
to undergo international
competitive bidding
• Contracts for the
construction of defense-
related structures

F. Corporations -do- Private radio communications

with 20% Foreign network
G. For Foreign • Application form
Partnerships • Name verification slip

• Certified Copy of Board

Resolution authorizing the
establishment of an office
in the Philippines,
designating the resident
agent to whom summons
and other legal processes
may be served on behalf of
the foreign corporation;
and stipulating that in the
absence of such agent or
upon cessation of its
business in the Philippines,
the SEC shall receive any
summons or legal process
as if the same is made
upon the corporation at its
home office.

• Financial statements for

the immediately
preceding year at the time
of filing of the application,
certified by an independent
Certified Public Accountant
of the home country

• Certified copies of the

Articles of
with an English translation
if in a foreign language

• Proof of inward remittance

such as bank certificate of
inward remittance or credit

• Registration data sheet

• Resident agent’s
acceptance of appointment

• For representative –
Affidavit executed by the
President or the Resident
Agent stating that the
applicant is in sound
financial condition
Schedule of Fees

The examining and filing fees of some basic registration documents are as

• Articles of Incorporation
• Stock corporation with par value 1/5 of 1% of the authorized capital stock or
the subscription price of the subscribed capital
stock whichever is higher but not less than
• Stock corporation without par
value 1/5 of 1% of the authorized capital stock
computed at P100 per share or the
subscription price of the subscribed capital
stock whichever is higher but not less than

• Certification of Paid-up Capital, P400

Outstanding Stock, Percentage of
Filipino Stockholdings, etc.

• Registration fee for Stock and P150

Transfer Book

• Registration fee for Membership P75


• Name Verification – Reservation P40 per allowed name


For application of registration with SEC, please contact:

Securities and Exchange Commission

SEC Bldg., EDSA cor. Ortigas Ave., Greenhills, Mandaluyong City
Tel. Nos.: (632) 726-0931 / 726-0939
Fax Nos.: (632) 727-6895 / 725-0543


A cooperative is a duly registered association of persons who want to achieve

a common lawful social or economic end. Members of the cooperative pool their
money, resources and talent to build capital, produce goods and raise their income.
Cooperatives serve as a mechanism for marketing the members’ produce and for
availing of loans at low interest rates.

The Cooperative Development Authority (CDA) is the lead government

agency mandated by virtue of the Republic Act No. 6939 to promote the viability and
growth of Philippine cooperatives. It is the only government agency that registers

Cooperative Express Lane Registration

The Cooperative Express Lane Registration is a program which intends to

facilitate and create an efficient system of registering cooperatives.

Registration under the “Express Lane” involves a 2-hour “process-release” of

Certificate of Registration using Express Lane forms, counted from the receipt of
complete documents by the CDA.

Steps Requirements Applicable Fees

E. Secure Express Lane 5. Name Verification Slip 7. Listings of
Registration Proforma 6. Articles of Cooperation Cooperatives,
Forms available for sale 7. Cooperative By-Laws Proforma
at the Registration 8. Treasurer’s Affidavit Articles of
Section of the different 9. Bond of Accountable Cooperation,
CDA Extension Offices. Officers By-Laws and
10. Economic Survey Economic
F. Submit duly 11. Undertaking to Change Survey (in
accomplished forms Cooperative Name diskette):
and other required 12. Certificate to Submit P50.00 per
documents to the Reportorial diskette
Registration Section. Requirements
13. Certificate of Pre-
8. Name
G. Pay filing fees at the Membership Education
Cashier. Training Seminar from
the duly accredited
H. Claim the Certificate of institutions or from the
P30.00 per
Registration from the CDA
allowed name 30
Releasing Unit at the Regional/Provincial
days reservation
Registration Section Offices
upon presentation of the 14. Endorsement letter from
9. Filing Fee:
Official Receipt of filing other Government
1/10 of 1% of the
fees. Agencies where
authorized share
capital but not
lower than

Enterprises that Need Endorsement from Other Government Agencies

Activity Government Agency

Workers Cooperative Specialized Agency concerned

Air Transport Civil Aeronautics Board

Banking, Pawnshop and other financial

intermediaries with quasi-banking Bangko Sentral ng Pilipinas

Professional Boxing Games and Amusement Board

Operation of games of chance (e.g. Philippine Charity Sweepstakes Office


Educational Institution-college or tertiary Commission on Higher Education


Educational Institution-elementary to Department of Education

high school

Educational Institution-technical or Technical Education and Skills

vocational Development Authority
Electric Power Plants Department of Energy

Hospitals Department of Health

Insurance Insurance Commission

Land Transport Land Transportation Franchising and

Regulatory Board

Water Transport construction and Maritime Industry Authority

building of vessels

Recruitment for overseas employment Philippine Overseas Employment


Security Agency Philippine National Police

Manufacture, repair, storage and/or Philippine National Police

distribution of products and/or
ingredients of firearms, gun powder and
all those indicated in E.O. 95 Series
2003 Foreign Investment Negative List

Manufacture, repair, storage and/or Department of National Defense

distribution of products i.e.
guns/ammunition for warfare, military
ordinance and all those indicated in
E.O. 95 Series 2003 Foreign
Investment Negative List

For more information on the establishment of cooperatives, please contact:

Cooperative Research, Information and Training Division

Cooperative Development Authority
Manila Extension Office
6/F Ben-Lor Bldg.,
1184 Quezon Ave., Quezon City
Tel. Nos.: (632) 372-6895 / 372-3808
Fax Nos.: (632) 372-3808 / 373-6896



The Board of Investments’ One-Stop Action Center for Investment or OSAC

expedites the setting up of businesses in the Philippines by providing frontline
services and assistance to walk-in investors. Competent personnel are available to
answer investors’ inquiries and the process of investor’s business registration thru
the Investment Promotion and Network (IPN) consisting of 24 government agencies.
The IPN facilitates transactions and resolves issues and concerns through a strong
linkage and effective networking of the agencies concerned with investments.

The OSAC is located at the:

Board of Investments
Ground Floor, Industry and Investments Building
385 Sen. Gil Puyat Avenue, Makati City
Telefax No.: (632) 895-8322
E-mail: or



Republic Act 7042, also known as the Foreign Investments Act of 1991,
defines and outlines the procedures and conditions under which foreign nationals,
including former Filipino citizens, may invest and do business in the Philippines with
a required paid-in capital of at least US$200,000. The law was amended by
Republic Act 8179 to further liberalize the entry of foreign investments into the

Foreign investments refer to equity investments made by a foreign national in

the form of foreign exchange and/or other assets actually transferred to the
Philippines and duly registered with the Central Bank, which shall assess and
appraise the value of such assets. These non-cash assets may be in the form of
capital goods and patents, formulae, or other technological rights or processes.

Specific Areas of Equal Investment Rights for Former Filipino Nationals

While most areas of business have limits for foreign investors, Section 9 of
the amended Foreign Investments Act of 1991 lists the following types of businesses
where former natural-born Filipinos, who have not elected dual citizenship, can enjoy
the same investment rights as Philippine citizens:

1. Cooperatives
2. Rural banks
3. Thrift banks and private development banks
4. Financing companies

Former natural-born Filipinos can also engage in activities under List B of the
Foreign Investments Negative List. This means that their investments shall be
treated as Filipino or will be considered as forming part of Filipino investments in
activities closed or limited to foreign participation.

The equal investment rights of former Filipino nationals do not extend to

activities reserved by the Constitution for Filipino citizens, including the following:

1. Exercise of profession
2. Defense-related activities
3. Security agency
4. Small-scale mining
5. Rice and corn industry
6. Cockpit operation and management

Former natural-born Filipinos have been given the right to be transferees of

private land up to a maximum of 5,000 square meters in the case of urban land or
three (3) hectares in the case of rural land to be used by him for business or other
purposes. Please refer to the section on land ownership for details.

Former natural-born Filipinos who have elected dual citizenship shall not be
covered by the prohibitions set forth above, by virtue of Republic Act 9225. Dual
citizens are not prohibited from enjoying the same investments rights as Philippine

General List of Businesses Exclusive to Filipino Nationals

Section 8 of the Amended Foreign Investments Act (FIA) enumerates the

investment areas reserved for Filipino nationals. The Foreign Investments Negative
Lists (FINL) are classified as follows:

• List A - consists of areas of activities reserved for Philippine nationals where

foreign equity participation in any domestic or export enterprise engaged in any
activity listed therein shall be limited to a maximum of forty percent (40%) as
prescribed by the Constitution and other specific laws.

• List B - consists of areas of activities where foreign ownership is limited pursuant

to law such as defense or law enforcement-related activities, or which have
negative implications on public health and morals, and small and medium-sized
domestic market enterprises with paid-in equity capital of less than US$200,000.

The revised Foreign Investments Act also deleted List C of the Foreign
Investments Negative List. List C contains investment areas already adequately
served by existing enterprises and in which foreign investments need not be
encouraged further. Deletion of this list is expected to open further the market to
foreign investments and keep existing firms efficient and responsive to the needs of
consumers. Consumers will also benefit through wider choices of products in terms
of quality and prices.

Additional Requirements
Former natural-born Filipinos who wish to do business in the Philippines must
also submit a copy of birth certificate, certified by the local civil registrar or the
National Statistics Office. For those born abroad, a certificate of birth from the
appropriate government agency of the country where the birth is recorded will be
required. It must show the father or mother to be a Filipino at the time of birth or if
the citizenship of the parents is not indicated, additional proof that the parent is a
Filipino citizen or has not lost his/her Filipino citizenship at the time of the applicant
investor’s birth.

Those born before January 17, 1973 of Filipino mothers must also submit all
of the following:

4. Certified true copies of his/her sworn statement of election of Filipino

5. Oath of allegiance from civil registrar where documents were filed and/or
6. Identification certificate issued by the Bureau of Immigration

In case of loss and/or destruction of record of birth or non-registration of

birth, the following must be submitted:

d. Certificate of non-availability of birth certificate on account of loss and/or

destruction of birth record from the local civil registrar and/or appropriate
government agency if birth was registered abroad

e. Copy of birth certificate of mother or father certified by the local civil registrar
or the NSO

f. Affidavit of two (2) disinterested persons attesting to their personal

knowledge that at the time of the applicant’s birth, he/she was born of a
Filipino mother or father

Documents executed or issued abroad must be authenticated by the

Philippine Embassy or Consulate having jurisdiction over the place of execution or
issuance of the document.


Investment Priorities Plan (IPP)

The IPP is a list of various areas of economic activities for investment eligible for
government incentives as provided for in the Omnibus Investments Code of 1987, as
amended. This is drawn up and revised every year in consultation with concerned
government agencies and the private sector. Generally, the IPP seeks to attain the
following goals:

1. To uplift the material well-being of the poor and the marginalized

2. To enhance global competitiveness of Philippine industries
3. To ensure sustainable development
4. To take advantage of global and international developments

An enterprise may still be entitled to incentives even if the activity is not listed in
the IPP so long as:
• at least 50% of production is for exports, if Filipino-owned enterprise; and
• at least 70% of production is for exports, if majority foreign-owned enterprise
(more than 40% foreign equity)

Incentives to Registered Firms

Incentives/privileges may be enjoyed only upon registration. In general,

registered enterprises are entitled to the following incentives:

Tax Exemptions

1. Income Tax Holiday (ITH)

a. BOI registered enterprises shall be exempt from the payment of income

taxes reckoned from the scheduled start of commercial operations as

• New projects with a pioneer status for six (6) years

• New projects with a non-pioneer status for four (4) years
• Expansion projects for three (3) years. As a general rule, exemption is
limited to incremental sales revenue/volume
• New or expansion projects in less developed areas for six (6) years,
regardless of status
• Modernization projects for three (3) years. As a general rule,
exemption is limited to incremental sales revenue/volume

b. The income tax holiday is limited in the following cases:

• Export traders may be entitled to the ITH only on their income derived
from the following:

- Export of new products, i.e., those which have not been exported
in excess of US$100,000 in any of the two (2) years preceding the
filing of application for registration, or
- Export to new markets, i.e., to a country where there has been no
recorded import of a specific export product in any of the two (2)
years preceding the application for registration.

• Mining Activities

- Exploration and development of mineral resources are not entitled

to ITH
- Mining and/or quarrying without mineral processing are not
entitled to ITH
- Mining and processing of aggregates are not entitled to ITH

c. Newly registered pioneer and non-pioneer enterprises and those located

in Less Developed Areas (LDAs) may avail themselves of a bonus year in
each of the following cases:

• The average cost of indigenous raw materials used in the

manufacture of the registered product must at least be fifty percent
(50%) of the total cost of raw materials for the preceding years prior to
the extension, unless the Board prescribes a higher percentage.
• The ratio of the total imported and domestic capital equipment to the
number of workers for the project does not exceed US$10,000 to one
(1) worker.

• The net foreign exchange savings or earnings amount to at least

US$500,000 annually during the first three (3) years of operation to be
determined by the BOI at the end of such three year period.

In no case shall the registered pioneer firm avail of this incentive for a
period exceeding eight (8) years.

2. Exemption from taxes and duties on imported spare parts

A registered enterprise with a bonded manufacturing warehouse shall be

exempt from customs duties and national internal revenue taxes on its
importation of required supplies/spare parts for consigned equipment or
those imported with incentives.

3. Exemption from wharfage dues and export tax, duty, impost and fees

All enterprises registered under the IPP will be given a ten (10) year period
from the date of registration to avail of the exemption from wharfage dues
and any export tax, impost and fees on its non-traditional export products.

4. Tax exemption on breeding stocks and genetic materials

Registered enterprises will be exempted from the payment of all taxes and
duties on their importation of breeding stocks and genetic materials within ten
(10) years from the date of registration or commercial operation reasonably
needed in the registered operations.

Tax Credits

1. Tax credit on tax and duty portion of domestic breeding stocks and genetic

A tax credit equivalent to one hundred percent (100%) of the value of the
tariff duties and taxes on local breeding stocks within ten (10) years from
date of registration or commercial operation for agricultural producers.

2. Tax credit on raw materials and supplies

A tax credit equivalent to the national internal revenue taxes and duties paid
on raw materials, supplies and semi-manufacture of export products and
forming part thereof shall be granted to a registered enterprise.

Additional Deductions from Taxable Income

13. Additional Deduction for Labor Expense (ADLE)

For the first five (5) years from registration, a registered enterprise shall be
allowed an additional deduction from taxable income equivalent to fifty
percent (50%) of wages of additional skilled and unskilled workers in the
direct labor force. This incentive shall be granted only if the enterprise meets
a prescribed capital to labor ratio and shall not be availed simultaneously with

This additional deduction shall be doubled if the activity is located in an LDA.

2. Additional deduction for necessary and major infrastructure works

Registered enterprises located in LDAs or in areas deficient in infrastructure,

public utilities and other facilities may deduct from taxable income an amount
equivalent to the expenses incurred in the development of necessary and
major infrastructure works it may have undertaken with the prior approval of
the BOI in consultation with other government agencies concerned. This
privilege, however, is not granted to mining and forestry-related projects as
they would naturally be located in certain areas to be near their sources of
raw materials.

Non-Fiscal Incentives

1. Employment of foreign nationals

A registered enterprise may be allowed to employ foreign nationals in

supervisory, technical or advisory positions for five (5) years from date of
registration. The positions of president, general manager, and treasurer of
foreign-owned registered enterprises or their equivalent shall, however, not
be subject to the foregoing limitations.

14. Simplification of customs procedures for the importation of equipment, spare

parts, raw materials, and supplies and exports of processed products by
registered enterprises in the operation of their bonded warehouses.

15. Importation of consigned equipment for a period of ten (10) years from date of
registration, subject to posting of re-export bond.

4. The privilege to operate a bonded manufacturing/trading warehouse subject

to Customs rules and regulations.

Entrepreneurial Development Services

Considering the multitude of OFWs, and the magnitude of foreign exchange that
they continue to contribute to the economy, the Board of Investments (BOI) believes
that OFWs are excellent sources of investment into the Philippines, hence, the
inclusion of overseas Filipinos among BOI’s target investors.

To make its investment promotions effort for this sector effective and gain more
impact, the BOI has integrated its overseas promotions program with the Overseas
Workers Welfare Administration’s (OWWA) Reintegration Preparedness Program.
Among the activities and services of the BOI for OFWs are:

1. Conduct of Business/Investment Counseling Seminar

2. Conduct of Entrepreneurial Training Workshop

Depending on the preference or need of a particular job site, the BOI may
conduct either a general investment briefing or a more advanced seminar
workshop dealing with entrepreneurship and business/investment counseling.
3. Assistance in the preparation of project report/project feasibility for BOI

4. Participation in investment fairs or exhibitions overseas as venue for BOI to

promote awareness among OFWs or Filipinos overseas

5. Assistance in joint venture partnership

6. Referrals to financing programs for additional capital. Provision of guidance in

setting up the business

• Registering the business (documentary and procedural requirements of

the Securities and Exchange Commission for partnership and
corporation, and of the Department of Trade and Industry for sole

• Securing Mayor’s permit

An investor who would like to engage in businesses and avail of incentives

can simultaneously file his/her application for registration with the SEC/ BTRCP and
application for incentives with the Board of Investments. The addresses and contact
information are as follows:

Board of Investments
Department of Trade and Industry
Industry and Investments Bldg.
385 Sen. Gil Puyat Ave., Makati City
Tel. Nos.: (632) 890-9332 / 897-6682 / 895-3640
Fax Nos.: (632) 895-3512 / 890-3172

Bureau of Trade Regulation and Consumer Protection

Department of Trade and Industry
Trade and Industry Bldg., 361 Gil Puyat Ave., Makati City
Tel. Nos.: (632) 890-5148 / 890-4901/05 loc. 416
Fax No.: (632) 890-4812

Securities and Exchange Commission

SEC Bldg., EDSA cor. Ortigas Ave., Greenhills, Mandaluyong City
Tel. Nos.: (632) 726-0931 / 726-0939
Fax Nos.: (632) 727-6895 / 725-0543


Republic Act 8762, also known as the Retail Trade Liberalization Act of 2000,
was enacted to promote consumer welfare by attracting and promoting productive
investments of foreign nationals and Filipinos overseas to stimulate economic
growth, and enable Philippine goods and services to become globally competitive
through the liberalization of the retail trade sector.

The law defines retail trade as any act, occupation or calling of habitually
selling merchandise, commodities, or goods directly to the general public for

Exempted Trade Activities

The law shall not apply to the following:

1. Sales by a manufacturer, processor, laborer or worker, to the general public

of products manufactured, processed or produced by him if his capital does
not exceed One Hundred Thousand Pesos (P100,000)

2. Sales by a farmer or agriculturist selling the products of his farm

3. Sales in restaurant operations by a hotel owner or inn-keeper irrespective of

the amount of capital, provided that, the restaurant is incidental to the hotel

4. Sales that are limited only to products manufactured, processed or

assembled by a manufacturer through a single outlet, irrespective of

Foreign Equity Participation

Foreign-owned partnerships, associations, and corporations formed and
organized under the laws of the Philippines may, upon registration with the SEC
and/or DTI, or in the case of single proprietorship with DTI, engage or invest in the
retail trade business, subject to the following categories:

d. Category A – Enterprise with paid-up capital equivalent in Philippine Pesos of

less than US$2.5 Million is reserved exclusively for Filipino citizens and
corporations owned by Filipino citizens.

e. Category B – Enterprise with a minimum paid-up capital equivalent in Philippine

Pesos of US$2.5 Million but less than US$7.5 million may be wholly owned by
foreigners except for the first two (2) years after the effectivity of this Act wherein
foreign participation shall be limited to not more than sixty percent (60%) of total

f. Category C – Enterprise with a paid up capital equivalent in Philippine Pesos of

US$7.5 million or more may be wholly owned by foreigners, provided, however,
that in no case shall the investments for establishing a store in Categories B and
C be less than the equivalent in Philippine Pesos of Eight Hundred Thirty
Thousand US Dollars (US$830,000).

g. Category D – Enterprise specializing in high-end or luxury products with paid up

capital equivalent in Philippine Pesos of Two Hundred Fifty Thousand US Dollars
(US$250,000) per store may be wholly owned by foreigners.

Rights of Former Filipino Citizens

Under Sec. 4 of the law, natural-born citizens of the Philippines who have lost
their Philippine citizenship but who reside in the Philippines, are granted the same
rights as Filipino citizens in the retail trade business.

For more information on Retail Trade Liberalization, please contact:

The Legal Department

Board of Investments (BOI)
Industry and Investments Bldg.
385 Sen. Gil Puyat Ave., Makati City
Tel. Nos.: (632) 897-6682 loc. 314 or 302 / 897-3084 / 896-7895
Fax No.: (632) 895-3978


Land Ownership by Filipinos Overseas

Article XII Section 8 of the Philippine Constitution provides that a natural-born

citizen of the Philippines who has lost his/her Philippine citizenship may be a
transferee of private lands subject to limitations provided by law.

The laws on land ownership by Filipinos overseas are contained in Batas

Pambansa Blg. 185 and Republic Act 8179, which amended the Foreign Investment
Act of 1991. BP 185 stipulates guidelines on land ownership by former Filipinos for
purposes of establishing residence, while Section 10 of RA 8179 specifies
entitlements and conditions for land acquisition for investment purposes.


The acquisition or transfer of private land refers to either voluntary or

involuntary sale, devise or donation. Involuntary sale includes sales on tax
delinquency, foreclosures, and executions of judgment.

Qualifications of Former Filipinos

Both laws define former Filipinos as citizens of the Philippines from birth
without having to perform any act to acquire or perfect their Philippine citizenship,
who lost said Philippine citizenship, and who have the legal capacity to enter into a
contract under Philippine laws.

Provisions on Land Ownership

The following are the provisions of BP 185 and RA 7042, as amended,

pertinent to land ownership by Filipinos overseas:

Particulars Provision under BP 185 Provisions under RA 7042

as amended by RA 8179
Size/Area of • maximum of 1,000 sq. meters • maximum of 5,000 sq. meters
Coverage for urban land for urban land
• maximum of one (1) hectare • maximum of three (3) hectares
for rural land for rural land

Land • either of the spouses may avail • either of the spouses may avail
Acquisition of the privilege of the privilege
for Both
Spouses • in case both spouses wish to • in case both spouses wish to
acquire lands for this purpose, acquire lands for this purpose,
the total area acquired should the total area acquired should
not exceed the maximum not exceed the maximum
allowed allowed

In case he/she already owns

urban or rural lands for In case he/she already owns
residential purposes, he/she urban or rural lands for business
Additional may acquire additional urban or purposes, he/she may acquire
Land rural lands, which when added additional urban or rural lands,
Acquisition to those he/she presently owns which when added to those
shall not exceed the authorized he/she presently owns shall not
maximum area. exceed the authorized maximum
Limits to A person may acquire not more A person may acquire not more
Acquisition of than two (2) lots which should than two (2) lots which should be
Land be situated in different situated in different
municipalities or cities municipalities or cities anywhere
anywhere in the Philippines, in the Philippines, provided that
provided that the total area of the total area of these lots do
these lots do not exceed 1,000 not exceed 5,000 sq. meters for
sq. meters for urban land or urban land or three (3) hectares
one (1) hectare for rural land for rural land for business
for use as residence. purposes.

An individual who has already Under Section 4 of Rule XII of

acquired urban land shall be the Implementing Rules and
disqualified from acquiring rural Regulations of RA 7042 as
land and vice versa. amended by RA 8179, a
transferee who has already
acquired urban land shall be
disqualified from acquiring rural
land and vice versa. However, if
the transferee has disposed of
his/her urban land, he/she may
still acquire rural land and vice
versa, provided that this will be
used for business.

A transferee of residential land

acquired under Batas
Pambansa Blg. 185 may still
avail of the privilege granted
under this law.

The acquired land should not Section 5 of Rule XII specifically

Use of Land be used for any purpose other states that “the land should be
than for residence. primarily, directly, and actually
used in the performance or
conduct of the owner’s business
or commercial activities in the
broad areas of agriculture,
industry and services including
the lease of land, but excluding
the buying and selling thereof”.

In addition to the requirements In addition to the usual

Special provided for in other laws for registration requirements
the registration of titles to pertinent to the conveyance of
lands, the transferee should real estate, the transfer
submit to the Register of Deeds contemplated shall not be
of the province or city where recorded unless the transferee
the property is located a sworn submits to the Registry of Deeds
statement stating the following: of the province or city where the
land is situated, the following:
• date and place of birth
• names and addresses of • certification of business
his/her parents, spouse, and registration issued by the
children, if any Bureau of Trade Regulation
• area, location, and mode of and Consumer Protection of
Violations Violations through:
and • misrepresentation in the
Penalties sworn statement
• acquisition of land through
fraudulent means
• failure to reside permanently
in the land acquired within
two (2) years from its
acquisition, except when such
failure is caused by force
majeure shall be penalized by
the following:

• liability to prosecution
under the applicable
provisions of the
Revised Penal Code
and subject to
deportation in
appropriate cases

- forfeiture of such lands and

their improvements to the
National Government
through escheat
proceedings by the
representative of the
Solicitor General

4. permanent
disqualification from
availment of the
privilege under this

Requirements for Land Registration or Original Certificate of Title (Judicial


The application for land registration should be filed in triplicate with the Clerk
of the Regional Trial Court of the province/city where the property is located. The
following documents should be attached to the application:

1. Original plan on tracing cloth duly approved by the Director of Lands or

Regional Land Director, or in lieu thereof, a true copy of the same on a tracing
cloth properly attested and certified by said Office or the official authorized to
make such certification, together with two (2) print copies thereof

2. Three (3) copies of technical description

3. Three (3) copies of surveyor’s certificate

4. Certificate of the assessed value of the property issued by the provincial

treasurer, in quadruplicate
Requirements for Land Transfer or Transfer Certificate of Title

The following documents are required for the filing of land transfer:

1. Copies of the Deed of Absolute Sale

2. Latest real estate tax payments
3. Latest tax declaration of the property
4. Certificate from the Bureau of Internal Revenue that the capital gains tax and
documentary stamps have been paid
5. Transfer tax
6. Receipt of payment of the transfer and registration fees

For more information on land ownership by Filipinos overseas, please contact:

Land Registration Authority, Law Division

LRA Building, East Avenue cor. NIA Road
Diliman, Quezon City
Tel. Nos.: (632) 920-1026/36
Telefax No.: (632) 921-1368




Criteria for conversion

d. Conversion may be allowed if the land is not among those considered non-
negotiable for conversion (e.g. lands granted to tenants through the
Comprehensive Agrarian Reform Program).
e. When the land ceases to be economically feasible and sound for agricultural
purposes or the locality has become urbanized and the land will have greater
economic value for residential, commercial, industrial, or other non-agricultural
f. Conversion of lands within Strategic Agriculture and Fisheries Development Zone
(SAFDZ) shall consider the following:

• The conversion of land use is consistent with the natural expansion of the
municipality or locality, as contained in the approved physical framework and
land use plan.

• The area to be converted is not the only remaining food production area of the

• The land use conversion shall not hamper the availability of irrigation to nearby

• The areas with low productivity will be accorded priority for land use conversion.
• Sufficient disturbance compensation shall be given to farmers whose livelihood
are negatively affected as provided for by existing laws and regulations.

6. When the agricultural land which is the subject of the application for conversion
has been acquired under RA 6657, its conversion shall be allowed only if the
applicant is the agrarian reform beneficiary thereof, and after he has fully paid his
obligation under Section 65 of RA 6657.

Documentary requirements

7. The applicant shall submit six copies of the following documents in six separate
bound folders (one original set and five photocopy sets) with table of contents
and page numbers of all documents including photographs, sequentially
numbered, except for maps and development plans which shall likewise be in
sextuplicate but shall be submitted in six separate envelopes.
8. Of the six folders, two will be transmitted to the Municipal Agrarian Reform
Officer (MARO), containing only the filled-out application form and documents
(TCT, True copy of the Certificate of Title, directional map)
9. The remaining four folders shall contain all the documents enumerated and are

e. Official receipt showing proof of payment of filing fee and inspection cost

f. Official receipt showing proof of posting of bond

• Bond to Guarantee Against Premature Conversion (section 24 of the 2002

Comprehensive Rules on Land Use Conversion)

4. Applicant is required to post a cash bond equivalent to two point five percent of the
zonal value of the land in form of cash or manager's check posted in favor of the
5. In lieu of a cash bond, the applicant may post a surety bond, issued by the GSIS,
equivalent to at least fifteen percent of the total zonal value of the land
6. DAR shall forfeit the bond in favor of the Agrarian Reform Fund when the applicant
carries out actual conversion activity on the land prior to the application's approval
7. After compliance with the terms and conditions of the bond, the applicant may opt
to refund or convert the bond into a performance bond after issuance of the
conversion order
8. The following projects shall be exempt from posting of bond:

• Socialized housing projects certified by the Housing and Land Use Regulatory
Board (HLURB)
• Resettlement projects for families displaced by development of government
projects certified by the National Housing Authority
• Community Mortgage Program (CMP) projects certified by the National Home
Mortgage Finance Corporation (NHMFC)

g. Duly accomplished notarized/authorized application for conversion

h. True copy of the Original Certificate of Title (OCT) or Transfer Certificate of Title
(TCT) certified by the Registry of Deeds not earlier than 30 days prior to
application filing date.

In case of untitled land, the following shall be required in place

of the title:
• Certification from the DENR Community Environment and Natural
Resources Officer (CENRO) that the landholding has been classified as
alienable and disposable; and

• Certification from the DENR CENRO (for administrative confirmation of

imperfect title) or the Clerk of Court (for judicial confirmation of imperfect
title) that the titling process has commenced and there are no adverse

i. True copy of the Certificate of Title

j. True copy of the current Tax Declaration

k. Project feasibility study

l. Joint venture agreement or any other business arrangement on the use of the
land between the landowner and the developer (if the developer is other than the
landowner) or between the EP/CLOA holders and the developer (if the land was
awarded under the agrarian reform program

m. Narrative description of the development plan

n. Proof of financial and organizational capability of the developer, including the

following information:

4. statement of project cost and availability of potential funding sources for the
development of proposed project

5. profile of the developer

6. most recent financial statement, not later than a year, authenticated by a

certified public accountant

7. if the developer is a corporation, a copy of its Certificate of Registration and

recent General Information Sheet for the immediately preceding year,
certified by the Securities and Exchange Commission (SEC)

o. Socio-Economic Benefit-Cost Study of the proposed project

p. Photographs size 5R (5 inches by 7 inches), colored, and taken on the

landholding under sunlight, attached to a paper background with the signature of
the photographer certifying the authenticity of the pictures. On each background
paper shall be written a short description of the picture. The pictures shall
consists of:

• At least 4 photographs taken from the center of the landholding: one facing
north, one facing east, one facing south and one facing west
• At least one photograph per corner of the landholding's borders
• At least 2 photographs each for all man-made structures on the land taken from
opposite angles
• At least 2 photographs each of the front view of the billboard/s. The applicant
shall set aside the second copy of said photograph/s for submission to the
• Sufficient number of photographs of the most conspicuous landmarks from the
nearest barangay center and leading to and from the entry and exit routes at the
subject landholding to assist the ocular inspection team
q. Affidavit/Undertaking of the applicant stating the following:
5. The number and names of the farmers, agricultural lessees, share tenants, farm
workers, actual tillers, and or occupants in the land holding. In the absence of
such persons, submit a statement attesting to such fact.
6. That the applicant has paid or shall pay disturbance compensation to these
7. That the applicant has erected the required number of billboards
8. That the applicant shall not undertake and has not undertaken premature
development prior to issuance of a Conversion Order
9. That he authorizes the DAR forfeiture of his bond if the need arises
10. That the subject land is not in any form of dispute in courts or outside of it

r. Certification of the MARO

s. Certification from the Housing and Land Use Regulatory Board (HLURB)
Regional Officer on the actual zoning or classification of the land

t. Certification from Department of Agriculture (DA)

u. Certification from the Department of Environment and Natural Resources


v. Environmental Compliance Certificate

w. Vicinity map and lot plan prepared by a duly-licensed geodetic engineer

x. Directional sketch map

y. Map of the development plan

z. Topographic map

The applicant shall submit the requirements at the time of application

filing. However, for applications involving housing projects, deferment
of submission is allowed and follows an alternative timetable

Where to File Application and Approving Authority

Type of Lands Government Agency

For applications involving lands with an Regional Center for Land Use Policy
area of less than or equal to 5 hectares Planning and Implementation (RCLUPPI)
or a fraction above 5 hectares located at the DAR Regional Office
addressed to the Regional Director
For applications involving lands with an Center for Land Use Policy Planning and
area greater than 5 hectares Implementation (CLUPPI) located at the
DAR Central Office, Elliptical Road,
Diliman, Quezon City. Approving
authority is the Department Secretary or
a designated Undersecretary
For zoning certificates Housing and Land Use Regulatory Board
Kalayaan Avenue cor. Elliptical Road,
Diliman, Quezon City
Filing Fee and Inspection Cost

• Filing fee:
• For lands with an area of less than or equal to 5 hectares: P1,000.00
• For lands with an area larger than 5 hectares: P2,000.00

• Inspection cost:

• For lands with an area of less than or equal to 5 hectares:

6. P10,000.00 - if the subject landholding is in the same island as that of the Office
of the Regional Director

7. P15,000.00 - if the subject landholding is not within the same island as that of the
Office of the Regional Director

• For lands with an area larger than 5 hectares:

• P10,000.00 - if the subject landholding is within the main island of Luzon, except
the Bicol peninsula

• P15,000.00 - if the subject landholding is within Regions I to IV but is not located

in the main island of Luzon

• P15,000.00 - if the subject landholding is in Bicol Peninsula or Visayas group of


• P20,000.00 - if the subject landholding is in the Mindanao group of islands

• Zoning fee: P500.00 (to be filed with the HLURB)

For more information on the conversion of lands, please contact:

Center for Land Use, Policy, Planning and Implementation Secretariat

Department of Agrarian Reform
Elliptical Road, Quezon City
Tel. Nos.: (0632) 928-7031-35 local 320; 926-1652, 928-7031-35
Fax No.: (0632) 926-1652

Housing and Land Use Regulatory Board

HLURB Building
Kalayaan Avenue cor. Elliptical Road
Diliman, Quezon City
Tel. Nos.: (0632) 920-3500; 924-6658; 926-1061, 924-3386
Fax No.: (0632) 920-3500



Program Description

In support of the National Small and Medium Enterprises (SMEs)

Development Plan, government financial institutions (GFIs) collaborated to design a
uniform lending program, tailored fit to meet the funding needs of SMEs. Under the
unified lending program, the participating GFIs shall apply simplified and
standardized lending procedures and guidelines, e.g., loan purpose, fee structures,
interest rates, application forms, financial ratios, and other lending parameters, for
evaluating the loan applications of SMEs.

To adopt to the financing needs of SMEs, two types of loans are available
under the program: short term loans payable in one year, and long term loans that
are payable up to five years.

The unified lending scheme operates in addition to the existing financial

services of the participating GFIs.


5. To simplify and standardize the lending procedures of GFIs, thereby enhancing

the SMEs' access to needed funds.
6. To shorten the list of documentary requirements to further facilitate the lending
7. To create a wider, borderless financing system that will afford the SMEs greater
access to short- and long-term funds
8. To lower the effective cost of borrowing by SMEs and liberalize the requirements.

Retail Lending for SMEs

Who qualifies to borrow under SULONG?

• Enterprises in all industries except trading of imported goods, liquor,

cigarettes and extractive industries.
• Enterprises that are at least 60% Filipino owned, whose assets are valued
at not more than P100 M, excluding the value of the land, or subject to
ownership rules as defined under existing Philippine laws for specific

What type of loans may be funded?

• For short-term loans, the entrepreneur may tap the program either for export
financing (export packing credit) or a credit line for temporary working capital.
• For long term loans, SMEs may apply for loans for permanent working capital, or
to purchase equipment, a lot or to construct a building/warehouse.

What is the maximum financing?

• For short-term loans, the program can fund up to 70% of the value of the LC/PO
(export packing), or 70% of working capital requirement (temporary working
capital); maximum of P5 M.
• For long-term loans, 80% of the incremental project cost, maximum of P5 M.

What is the repayment term?

• For short-term loans, a maximum of one year.
• For long-term loan, a maximum of five years, inclusive of a maximum one year
grace period on principal monthly amortization.

Are collaterals required? If so, what assets are acceptable?

The program will not decline a loan only on the basis of inadequate collateral.
However, the borrower must be willing to mortgage any available business and
personal collateral, including assets to be acquired from the loan, to secure the

The following are acceptable collaterals: postdated checks,

registered/unregistered REM/ CHM, or the assignment of life insurance. In addition,
for franchisees, the following may be considered: corporate guarantee and
assignment of lease rights. If the loan purpose is for export packing credit, a
borrower may assign his LC/PO or sales invoice.

What financial ratios/hurdles must a borrower meet?

The debt-equity ratio must at most be 80:20 after the loan. For franchisees,
the required ratio is 70:30. In addition, the borrower must show positive income for
the preceding year. Should the SME borrower's financials show negative income in
the past year, the GFI may consider their average income for the last two or three

What is the interest rate for loans under this program?

The participating GFIs will charge the same rate for the program based on a
regular review. In its program launch, the interest rate for loan releases until June
30, 2003 shall be: 9% for short-term loans; 11.25% for medium-term loans of up to
3-years and 12.75% for loans over 3-years to five years.

Aside from the interest rate, what fees must be paid?

A one-time application and evaluation fee of P2,000 for every P1 M, a front-

end fee of 1% of approved loan, and a commitment fee of 0.125% of the unavailed
balance for long term loans.

Who are the participating GFIs?

Interested entrepreneurs may approach the head office or branches of the

following GFIs:
3. Development Bank of the Philippines
4. Land Bank of the Philippines
5. National Livelihood Support Fund
6. Small Business Guarantee and Finance Corp.
7. Philippine Export-Import Credit Agency
8. Quedan & Rural Credit Guarantee Corporation

Matrix of Lending Features


Export Financing (Export a) Purchase of Equipment
Loan Packing Credit) b) Building Construction Term
Purpose Credit Line (Temporary Loans
Working Capital), preferably c) Permanent Working Capital

All industries except trading All industries except trading of

of imported goods, of liquor imported goods, of liquor and
and cigarettes, and extractive cigarettes, and extractive
industries. Each GFI shall industries. Each GFI shall have
have its own priority list as its own priority list as well as
well as exclusion list which exclusion list which shall be
Industries shall be prepared to ensure prepared to ensure
complementation of programs complementation of programs of
of the GFIs. the GFI's.

At least 60% Filipino-owned

At least 60% Filipino-owned
whose assets are not more
whose assets are not more than
than P100 million, excluding
P100 million, excluding the value
Eligible the value of the land, or
of the land, or subject to
Enterprise subject to ownership rules as
ownership rules as defined under
s defined under existing
existing Philippine laws for
Philippine laws for specific
specific industries. Only SMEs
industries. Only SMEs with
with assets of at least P500,000
assets of at least P500,000
are qualified.
are qualified.

Subject to GFI's minimum Subject to GFI's minimum loan

loan requirement, which shall requirement, which shall in no
in no case exceed P1 million. case exceed P1 million. The loan
The loan must be within the must be within the SME's
SME's absorptive capacity as absorptive capacity as evaluated
evaluated by the GFI. by the GFI.

70% of the value of LC/PO; 80% of the incremental project

maximum of P5.0 Million. cost; maximum of P5.0 Million.
Subject to a GFI's minimum Subject to a GFI's minimum loan
loan requirement which shall requirement which shall in no
in no case exceed P1M. The case be more than P1M. The
loan must be within the loan must be within the SME's
SME's absorptive capacity as absorptive capacity as evaluated
evaluated by the GFI. by the GFI.
A risk premium of up to 1% A risk premium of 1% may be
p.a. may be added for loans added for loans not fully
Non- not fully collateralized and 2% collateralized and 2% for loans
collateraliz for loans with less than 50% with less than 50% collateral. The
ed collateral. The risk premium is risk premium is added based on
Premium added based on the collateral the collateral position of the
position of the borrower at the borrower at the time of loan
time of loan application application approval.

Repayment Maximum of 5 years, inclusive of

Maximum of one year
Term maximum 1 year grace period on
principal monthly amortization

Registered/Unregistered Real
Estate Mortgage/Chattel
Registered/Unregistered Real
Estate Mortgage/Chattel
Assignment of LC or PO (if
Corporate Guarantee (if
Collateral** Guarantee cover
Corporate Guarantee (if
Assignment Of lease rights (if
Assignment of lease rights (if
Other acceptable collaterals to
Other acceptable collaterals
to GFIs

P2,000 for every 1 Million P2,000 for every 1 Million Plus

Plus front-end fee of 1/2 of front-end fee of 1/2 of 1% of
1% of approved loan. A approved loan. A service fee of
service fee of 1% p.a. may be up to 1% p.a. may be imposed if
imposed if the GFI the GFI accommodates projects
accommodates projects outside of its regular areas of
outside of its regular areas of geographical operation.
geographical operation.

At most 80:20 after the loan
Debt- At most 80:20 after the loan
At most 70:30 (if franchisee)

Positive income for last year Positive income for last year. (If
(If past year's income is past year's income is negative,
negative, the average income the average income of past 2 or 3
of past 2 or 3 years should be years should be positive). It is
positive). It is implied that implied that projects are
projects are operational for at operational for at least a year
least a year.
Based on Industry standards Based on industry standards

**Collateral Policy
**The Program will not decline a loan only on the basis of inadequate collateral. However, the borrower
must be willing to mortgage any available business and non-business related collateral, including
assets to be acquired from the loan to secure the borrowing. The program shall adopt a differentiated
minimum/partial collateral policy as dictated by loan purpose and loan amounts.
* Interest rates may be reviewed quarterly.

For more information on financing of small and medium enterprises, please contact:

Small Business Guarantee and Finance Corporation

Department of Trade and Industry
Sen. Gil Puyat Avenue, Makati City
Tel. Nos.: (0632) 830-0285 / 813-5720
Fax. No.: (0632) 830-0285


Total Development Options – Unified LandBank Approach to Development

(TODO UNLAD) is LandBank’s flagship program for countryside development.
Through its various lending programs and support services, TODO UNLAD links
cooperatives, local government units, private corporations / small and medium
enterprises and non-government organizations in specific areas around an
integrated development project. TODO UNLAD moves away fro piecemeal efforts in
developing an area. Instead, it extends loans and other support services to all key
players in a pre-identified area to ensure that all efforts lead to an integrated area

TODO UNLAD projects aim to achieve countryside development by linking

producers to markets and processors, strengthening cooperatives and local
government units. Specifically, it hopes to increase agricultural productivity, improve
basic infrastructure, and eventually pave the way towards rural industrialization and
to transfer partially or wholly, the ownership and management of productive assets to

Its projects are composed of a combination of two or more of any of the

following loans and services:
• Local government lending
• Commercial lending
• Cooperative lending
• Production or post-harvest facilities financing
• Market matching and production, marketing and management agreements
• Cooperative strengthening
• LGU advisory services
• Import / export financing
• Integrated loan packages for Agrarian Reform Communities

Requirements for application

• For Private Corporation or Company

3. Gross revenue of at least P1 million (this can be waived on a case to case
4. Profitability track record for 2 consecutive years
5. No labor strike for 2 years
6. No adverse LBP credit findings
7. Potential collateral business

• For Cooperatives
9. Earning asset level rating at least C per LBP cooperative accreditation criteria
10.Maturity level rating at least C per LBP cooperative accreditation criteria
11.Regional Gawad PITAK Winner
12.No outstanding past due (this can be waived if the proposed project will
strengthen or rehabilitate the coop partners)

For more information on TODO UNLAD, please coordinate with:

Program Management Department

TODO UNLAD and Access Programs Unit
Land Bank of the Philippines
28th Floor, Land Bank Plaza
1598 M.H. del Pilar Street corner Quintos Street
Malate, Manila
Tel. Nos.: (0632) 522-0000/ 551-2200 (local 2307 or 2376)



The Development Bank of the Philippines (DBP) recognizes small and

medium enterprises as a potent force in spurring the growth of the economy and
finances many SME projects. The SME Development Approach is a holistic program
of providing credit, and non-credit assistance in the form of technical support in the
areas of marketing, research and development, business diagnosis, and human
resource development. The Bank has established strategic alliances with
participating financial institutions and has adopted the industry cluster approach.

Eligible Borrowers

Single proprietorships, registered partnerships, cooperatives, associations,

private corporations, private financial institutions, local government units, non-
government organizations.

Acceptable Collaterals

Generally, acceptable collaterals for loans are registered first mortgage on

titled real estate properties, buildings, machinery and equipment and other
mortgageable assets which are already owned by the applicant or to be acquired
partly or fully with proceeds of the loan applied for. Hold-out on savings and time
deposits as well as government security placements are also considered as
acceptable collaterals.

In some cases, the Bank also accepts the guarantees of the following as part
of collaterals: Quedan and Rural Credit Guarantee Corporation (QUENDANCOR),
Small Business Guarantee and Finance Corporation (SBGFC), Philippine Export-
Import Credit Agency (PHILEXIM), Home Insurance Guaranty Corporation (HIGC).

Interest Rate and Other Charges

The rate of interest and other charges for loans and other credit
accommodations are generally market-based.

Debt-Equity Requirements

The debt-equity requirements of the Bank would depend on the type of

project to be financed taken in conjunction with the Bank's assessment of the risk
factors for a particular borrower.

Types of Projects Financed

§ Industrial
17.Large manufacturing and non-manufacturing industries
18.Small and medium manufacturing and non-manufacturing industries
19.Industrial Estate Projects
§ Public Utilities
21.Land, air and water transportation
23.Power generation and distribution
24.Water supply and distribution
§ Community Development
§ Agro-industrial
32.Post harvest-facility
§ Focused Lending Programs
36.Pollution control and abatement
37.Waste minimization and recycling
38.Efficient use and/or management of natural resources
39.Occupational health & safety
40.Establishment of Environmental Management System (EMS) and
certification under ISO 14000
42.Lending program for franchises
43.Program towards obtaining ISO 9000 certification
44.New and renewable energy (NRE) projects
45.Technology development and commercialization
46.LGU financing program
47.Sustainable logistics development program
48.Road/Roro Ferry Network
49.Grains Bulk
§ Other Programs
52.Loans Against Hold Out on Deposit

For more information on financing of small and medium enterprises by DBP, please

Development Bank of the Philippines

Makati Avenue cor. Sen. Gil Puyat Avenue
Makati City
Tel. Nos.: (0632) 818-9511 to 20; 818-9611 to 20
Email Add.:



Salaries and wages vary depending on several factors like nature of work,
location of work and time of work. Salaries in the urban areas are higher than those
working in the rural areas. There are, however, laws implemented in relation to
employment to give equitable compensation and benefits to employees. Examples
of these are the minimum wage, health and insurance benefits, and holiday pays.

Per Wage Order No. NCR-09

(Effective November 05, 2001 & February 01, 2002)

Minimum Wage

Industry / Sector Basic Wage Wage ECOLA ECOLA (Feb.

Ceiling (Nov. 05, 01, 2004

Establishment P250.00 P290.00 P15.00 P15.00

employing 10 or
more workers

Plantation P213.00 -- P15.00 P15.00

Non-Plantation P213.00 P15.00 P15.00
Private Hospitals

With bed capacity of P213.00 -- P15.00 P15.00

100 or less
Retail / Service

Regularly employing P213.00 -- P15.00 P15.00

15 workers or less

Regularly employing P213.00 -- P15.00 P15.00

less than 10 workers

*Include COLAS
a/ Covers the cities of Caloocan, Las Piñas, Makati, Mandaluyong, Manila,
Marikina, Muntinlupa, Pasay, Pasig and Quezon and the Municipalities of
Malabon, Navotas, Paranaque, Pateros, San Juan, Taguig & Valenzuela.

b/ Grants Emergency Cost of Living Allowance (ECOLA) of THIRTY

PESOS in the Non-Agriculture sector, receiving daily wage rates of P250
payable in two tranches: P15 effective 05 November 2001 and P15 effective
01 February 2002.

> Also receive the P30.00 ECOLA are workers receiving a daily wage rate of
P213.00 in the Agricultural Sector (plantation and non-plantation), Private
Hospitals with bed capacity of one hundred (100) or less, Retail/Service
Establishments regularly employing fifteen (15) workers or less, and
Manufacturing establishments regularly employing less than ten (10) workers
and all other establishments previously covered under (WO-NCR-08 regularly
employing ten (10) workers or less).

> The wage ceiling of P290.00 applies only to workers in the Non-agriculture
> Issued on 19 October 2001 and published at the Philippine Star News on
21 October 2001.

Effective July 10, 2004, the amount of P20.00 ECOLA shall be added to the
daily minimum wage of employees in the private sector.

Other conditions of employment and benefits given to employees

8. Normal working hours not exceeding 8 hours a day

9. Payment of overtime work (at least 25% of the employee’s regular wage)
10.Weekly rest period of not less 24 consecutive hours after every 6 consecutive normal work
11.Provision of holiday pay
12.Service incentive leave of at least 5 days with pay for every year of service
13.Worker preference in case of bankruptcy
14.Paternity and maternity leave benefits
15.Minimum age for employment
16.Employees compensation and insurance fund (SSS and GSIS)
17.Provision of medical or health insurance



Insurance and pension plans offer alternative source of finances for overseas
Filipinos particularly upon reaching retirement age. Investment in insurance and
pension plans assure them and their families of readily available finances in cases of
death, health problems and emergency. Companies offering insurance and pension
plans offer a variety of benefits accompanying the plan, such as transferability of
benefits to heirs, minimum amount for premiums, and assured continuity of benefits
and guaranteed full payment even in cases of untimely death or disability during the
paying period.

The following are examples of insurance and pension plans offered by

Philippine and international companies denominated in either or both peso and dollar
Type of Prudential Pru-Life U.K. Philam Plans Sun Life PET Dollar
Insurance Life Financial Pension Plan
Insuranc Pru Life UK The Future Sun Life A first in the
e/Plan Fund Secure Savings Fund Plus of Financial pre-need
Coverag offers the products are Philam Life Philippines industry, PET
Planholder good for provides provides Dollar
flexibility in accumulating guaranteed holders with Pension Plan
payment of funds for interest the ease, is ideal for
required purposes earnings as flexibility and overseas
installments. such as against other convenience Filipino
Non-payment education, financial to choose the workers who
of succeeding retirement, instruments. It scheme that are looking for
installments business. maximizes best suits a facility to
still provide a These are returns by your needs invest their
Guaranteed regular reinvesting and matches hard-earned
Cash Benefit savings the maturity your cash dollars in; and
(GCB) programs that benefit in requirements. for other
corresponding offer both Philam Plans’ It offers two Filipinos
to the number savings and Fund classes of looking for a
of protection for Management pension plan: stable
installments a specific Security Sun Pension investment.
made on the length of time which is a and Sun
15th year. you choose. facility that Pension Plus. It is backed
Your plan is At the end of allows up by PET
therefore the term, you maturity Plans’ P2.5
protected will receive a benefit to billion in Trust
from lapsation lump sum earn interest Funds, over
and payment to per annum, 100 business
cancellation. use for the tax free. centers
purpose you nationwide
have in mind. and more
And, as a than 12,000
long-term active
savings plan, business
you may also partners,
take loans among
against your others.
Premium P5,700 / year PruSave – P25 /daily P10,000 per $276.00
(payable P2,000 / unit
quarterly, month
or annually) PruGold –
P1,501 /

PruLife Plus –
P3,000 /

PruCash –
P2,066 /

PruMaxi Save
– P4,380 /
Maturity 15 years 15, 20, 25 5, 7, 10 years Payment PET $ Gold –
years terms is 5, 7, with a cash
10 or 20 allowance of
years up to 20% of
the maturity
Maturity value at the
period is 10 – end of the 10th
30 years – 14th year
and with full
maturity on
the 15th year

PET $10 –
10th year
maturity plan

PET $15 –
15th year or on
Other Full Payment PruLink Complete Credit Group Optional
benefits Guarantee Investor* insurance Life ensures Support Fund
is a single- benefits that all unpaid – The
In case of pay variable through: installments planholder’s
death during life product will be paid family or his
paying period, denominated • Credit life and the legitimate
remaining either in • Waiver of beneficiaries beneficiaries
balance of the Philippine premium will still get a portion
plan is fully Peso or US upon receive the of the maturity
paid. Dollars, which disability pension value, in
provides a • Accidental benefit upon advance, in
Waiver of guaranteed death and maturity. case of the
Installment death benefit dismem- planholder’s
Due to of 125% of berment Credit Groups untimely
Disability the single benefits Disability demise
premium or • Non-medical ensures that
In case of the value of insurance all unpaid Pension Loan
disablity for 6 units, installment Assistance
• Flexible
consecutive whichever is will be paid in
months during higher. The the event that Transferability
benefit pay-
paying period, insured can the plan
out schemes
subsequent avail of the holder Dividend
• Incontes-
installments living benefits, becomes earnings
are waived. which consist totally and
of partial or • Respon-sive permanently
Accidental full withdrawal service disabled
Death and values, which during the
Dismember- are sourced paying period.
ment from the
policy’s share Dividends –
In case of in the unit on top of the
accidental funds. pension fund,
death or Additional the plan
dismember- premiums holder will get
ment during called top-ups dividends in
paying period, may be added the form of
the to the policy. cash or apply
Planholder to
shall receive PruLife installments.
a maximum of Assurance
total Account is a
installments regular
paid. premium
variable life
Family product
Assistance denominated
Fund in Philippine
Peso which
In case of provides for
death before varying
the maturity benefits. Sum
of the plan, a Assured is
cash benefit quoted as
equivalent to multiples of
the total the regular
installments premium. The
paid shall be insured can
Contact Prudential Philam Plans, Sun Life PET Plans
Information Plans, Inc. Inc. Financial Centre
118 Gamboa TN: (0632) Plans, Inc. 114 Aguirre
St. 823-1222 St., Legaspi
Legaspi TN: (0632) Village,
Village www.bcbuddy 887-1071 Makati City
Makati City .com FN: (0632)
887-2008 / TN: (0632)
TN: (0632) 843-2907 892-5546
sunlink@sunli www.petplans .com

The table shows how the PruLink Investor Account works. The values are based on
projected performance of the fund where the policy is linked

If you save You will receive at age 60

Philippine Peso 5% 10% 15%

P50,000 single P127,186 P513,502 P1,948,484

US Dollar 3% 6% 9%

US 5,000 single USD 7,220 USD 17,085 USD 39,446


The Social Security System Flexi-Fund

The SSS Flexi-Fund is a voluntary provided fund specifically for overseas

Filipinos that provides additional benefits to the members on top of their regular SSS
membership. It is a pension plan and savings account rolled into one that enables
the contributions to earn interest. It also offers retirement, disability and death
benefits, among others.

The Flexi-Fund is open to overseas Filipinos who are:

5. recruited in the Philippines by foreign-based employers for work overseas;

6. having a source of income in a foreign country; or
7. residing permanently in a foreign country.

One must first be an SSS member before becoming a member of the Flexi-
Fund. First time members should ensure that their monthly contribution to the
regular social security program is at the maximum bracket.

As a Flexi-Fund member, one may withdraw his or her contributions with

interest anytime. Members who reach the age of 60 are entitled to retirement
benefits in the form of a monthly pension or a lump sum payment. This beneficiaries
of a pensioner who passed away shall receive a lump sump benefit equivalent to the
cash value of the remaining pension. The contributions remitted to the SSS Flexi-
Fund are invested in government Treasury Bills that yield high interest and are risk-
free. The interests earned by the deposits are based on the average 91-day
Treasury Bill rate of the previous rate.

To enroll in the Flexi-Fund, simply register at SSS foreign representative

offices located at various entities or download SSS Form OW-1 from the SSS

For more information, please contact:

International Affairs and Branch Expansion Office

3/F SSS Building, East Avenue
Quezon City
Telefax no.: (632) 435-9814
E-mail address:



The Commission on Filipinos Overseas is a Philippine Government agency

under the Office of the President tasked to promote the interests of Filipino
emigrants and permanent residents abroad, as well as strengthen ties with Filipino
communities overseas. It was established in 1980 through Batas Pambansa Blg. 79.

The Commission on Filipinos Overseas registers and provides orientation for

departing emigrants, and conducts Filipino heritage programs for younger
generations of overseas Filipinos. It promotes transfer of technology, material
contributions and financial grants from overseas Filipino communities for
development activities in over seventy provinces in the Philippines. The Commission
also provides liaison to Filipinos overseas with appropriate government and private
agencies in the transaction of business and similar ventures in the Philippines.

Of the total number of overseas Filipinos, more than 2.8 million or more than
one third are emigrants or permanent residents overseas, as of December 2003.
They live mainly in Australia, Austria, Canada, Guam, Japan, Germany, Spain,
United States of America, the United Kingdom and New Zealand.

Filipino emigrants and permanent residents overseas, who would mostly be

naturalized citizens of other countries, can benefit from R.A. 9225, the Citizenship
Retention and Reacquisition Act of 2003 or the dual citizenship law. The
Commission on Filipinos Overseas is also prepared to assist those interested in
looking at prospects and opportunities open to overseas Filipinos who reacquire their
Filipino citizenship.


Citigold Center, 1345 President Quirino Avenue
corner South Expressway, Manila

Tel. no. (632) 561-8321; Fax no. (632) 561-8332


The Commission on Filipinos Overseas would like to thank the following for
their invaluable contribution in the preparation of the Investment and Business Guide
for Overseas Filipinos:

Government Agencies

Bangko Sentral ng Pilipinas

Supervisory Reports and Studies Office

Board of Investments (BOI)

The Legal Department

Bureau of Internal Revenue

Construction Industry Authority of the Philippines

Philippine Construction Accreditation Board

Cooperative Development Authority

Cooperative Research, Information and Training Division

Department of Agrarian Reform

Center for Land Use, Policy, Planning and Implementation Secretariat

Department of Agriculture
Agribusiness Investment and Enterprise Development Division

Department of Labor and Employment

Department of Social Welfare and Development

Standards Regulation Unit

Department of Tourism

Department of Trade and Industry

Board of Investments
Board of Investments' One Stop Action Center (BOI-OSAC)
Bureau of Small and Medium Enterprise Development
Bureau of Trade Regulation and Consumer Protection
Small Business Guarantee and Finance Corporation

Department of Trade and Industry – National Capital Region

Development Bank of the Philippines

Housing and Land Use Regulatory Board

Rules and Standard Development Office
Land Bank of the Philippines
Program Management Department
TODO UNLAD and Access Programs Unit
Land Registration Authority
Law Division

PAG-IBIG Fund Overseas Program

Petroleum Association of the Philippines

Philippine Coconut Authority

Philippine Exporters Confederation, Inc. (PHILEXPORT)

Philippine National Bank

Philippine Overseas Employment Administration

Licensing and Regulation Division

Quezon City Hall

Business Permits Division

Social Security System

Securities and Exchange Commission

Technical Education and Skills Development Authority

The Office of Formal TVET

Philippine Economic Zones Authority

Promotions and Public Relations Group

Subic Bay Freeport Zone

Promotions and Marketing Department

Clark Special Economic Zone

Marketing Department

Mactan Export Processing Zone 2

Baguio City Economic Zone

Bataan Economic Zone

Private Sector

Asian Institute of Management Policy Center

Filinvest Alabang, Inc. Administration (FAI)

Documentation Department
Petron Corporation

Pilipinas Shell Petroleum Corporation

Seaoil Philippines

Franchising Divisions:


Candy Corner Franchising Corp.

Fix Bench

Goldilocks Bakeshop, Inc.



Mister Donut Philippines

Mr. Quickie

Nacho King

Parcel Select

Reyes Haircutters

Zagu Foods Corporation

PET Plans Centre

Philam Plans, Inc.

Prudential Plans, Inc.

Pru-Life U.K.

Sun Life Financial Plans, Inc.

While care has been taken to ensure that the information contained in the
Investment and Business Guide for Overseas Filipinos is correct at the
time of publication, the public is advised to examine prospects closely
before making business and investment decisions.