FIA

Question 1

What is a Negative List?

Answer 1

It is a list of business activities or enterprises in the Philippines that foreigners are
disqualified to engage in.

Question 2

Under FIA ‘91, What does the Philippine National covers?

Answer 2

The law considers the juridical personality, whether domestic or foreign, as a mere
medium; the test of nationality is on the individuals who control the medium

Question 3

How much is the fine if a person violates any provision of FIA?

Answer 3

A fine not exceeding 100,000 pesos

Question 4

Non-Philippine nationals may own up to one hundred percent (100%) of domestic
market enterprises unless

Answer 4

Foreign ownership is prohibited or limited by existing law or the Foreign Investment Negative List

Question 5

Foreign Investment Act shall not apply to?

Answer 5

banking and other financial institutions which are governed and regulated by the
General Banking Act

Question 6

When do Foreign Investment Act take effect?

Answer 6

15 days after approval and publication in 2 newspapers of general circulation in the
Philippines

Question 7

What is FIA of 1991?

Answer 7

an act to promote foreign investments, prescribe the procedures for registering
enterprises doing business in the Philippines, and for other purposes.

Question 8

Define foreign investment?

Answer 8

an equity investment made by a non-Philippine national in the form of foreign exchange
and/or other assets transferred to the Philippines

Question 9

In FIA ‘91, What are the difference between List A and List B in negative list?

Answer 9

• In List A, Foreign ownership is limited by mandate of the Constitution and specific laws.
  While
• List B, Foreign ownership is limited for reasons of security, defense. Risk to health and
  morals and protection of small and medium scale enterprises.

Question 10

Under Foreign investment negative list A, the ratio of Filipino-foreign ownership of
Cooperatives?

Answer 10

It requires 100% Filipino ownership

Question 11

Under Foreign investment negative list A, the ratio of Filipino-foreign ownership of
Retail trade enterprises with paid-capital of less than USD2.5M?

Answer 11

It requires 100% Filipino ownership

Question 12

Under Foreign investment negative list A, the ratio of Filipino-foreign ownership of
Private security agencies?

Answer 12

It requires 100% Filipino ownership