REGISTRATION OF FOREIGN INVESTMENTS WITH THE BSP
The Foreign Investments Act of 1991 (FIA) defines the term ‘foreign investment’ as “an equity investment made by a non-Philippine national in the form of foreign exchange and/or other assets actually transferred to the Philippines xxx.” Section 3.c. of the FIA).
If the foreign exchange requirement needed to service the repatriation of capital and remittance of cash dividends/profits/earnings accruing on foreign investments will be sourced from authorized agent banks (AABs) or their affiliate/ subsidiary foreign exchange corporations (AAB-forex corps), registration of the foreign investment with the Bangko Sentral ng Pilipinas (BSP) is required.
Investments may be in the form of:
a. Foreign direct investments (FDIs) in Philippine firms or enterprises
b. Foreign portfolio investments
- Investments in peso-denominated securities issued by the National Government and other public sector entities;
- Investments in securities of resident enterprises listed at the Philippine Stock Exchange (PSE);
- Investments in peso-time deposits with AABs with a maturity of at least
90 days; and
Other peso-denominated debt instruments issued onshore by private> resident firms
not covered by Section 23 of the Manual of Regulations on Foreign Exchange Transactions
c. Other investments (investments by non-residents in PSE-listed equity securities issued by non-residents).
“Applications for registration of investments should be filed with the BSP, through the International
Operations Department (IOD), for items 2.a and 2.b(iv), while items 2.b(i), 2.b(ii), 2.b(iii) and
2.c should be filed with custodian banks. Applications for registration of FDIs (item 2.a) should
be filed with the BSP – IOD within one (1) year from the date of inward remittance of
foreign exchange/actual transfer of assets to the Philippines.”
For more information about BSP, you can visit this link.
(e.g., relevant policies including documentary requirements, forms, among others)
regarding registration of foreign direct investments, foreign portfolio
investments and other investments.