The Philippines has laws for any and all aspects of business, politics, and social protection. Its leaders have anticipated the need for proactive legislation necessary to bring the country to the forefront of development. As such, the Philippines is among the first in Asia to legislate an electronic commerce law. The move is expected to jumpstart the nation’s economy and propel it towards its goal to be the e-services hub of Asia.Anyone, regardless of nationality, is welcome to invest in the Philippines in almost all areas, and up to the extent of 100 percent ownership. The laws governing investments include the areas of Legal, Education and Manpower Development, Telecommunication Infrastructure, and Institutions.
The Philippines Electronic Act of 2000 (E-Commerce Act 2000)
The Investment Priorities Plan (IPP)
The Special Economic Zone Act
The Intellectual Property Code of the Philippines
Policies Related to General Business
The Philippines Electronic Act of 2000 (E-Commerce Act 2000)
This landmark legislation sets up the legal infrastructure that now governs online transactions in the Philippines, thus paving the way for the full proliferation of e-commerce in the country. As it is based on the Model Law on Electronic Commerce drafted by the United Nations Commission for International Trade Law (UNCITRAL), it also prepares the Philippines for full participation in global e-commerce.
Its highlights include:
- Legal recognition of electronic documents, signatures and transactions
- Penalizing of cyber crimes such as hacking into, altering, forging, inflicting damage on, violating the secrecy of, and illegally misusing electronic documents sent, received, stored or compiled
- Mandating of government agencies to be e-commerce-ready in two years
Download the E-commerce Act 2000 and its Implementing Rules and Regulations
The Investment Priorities Plan (IPP)
The Investment Priorities Plan (IPP) of 2000, which is implemented by the Philippine Board of Investments, seeks to achieve countrywide development through globally competitive industries. Incentives and investment areas specific for information technology services are listed in the Guidelines for IT services, which presents the procedure for the registration and administration of incentives under Executive Order 226.
The Special Economic Zone Act
The Special Economic Zone Act of 1991 or Republic Act 7916 establishes the legal framework and mechanisms for special economic zones (ecozones) such as information technology parks. The law, which is implemented by the Philippine Economic Zone Authority (PEZA), grantsincentives for companies locating in ecozones.
Download the Guidelines for IT Parks
The Intellectual Property Code of the Philippines
The Intellectual Property Code of the Philippines as approved under Republic Act 8293, enhances the protection of intellectual property rights (IPR’s), privacy and data security. For more information, visit the Philippine Intellectual Property Office website.
Policies Related to General Business
Other laws relevant to the investor’s business activities include:
Republic Act 8756 and its Implementing Rules and Regulations which amend the Omnibus Investment Code of 1987, lay down the procedures for any multinational company to establish regional or area headquarters in the Philippines.
Foreign Investments Act of 1991 seeks to promote foreign investments in the country. The Act lays down the procedures for registering enterprises that do business or other activities in the Philippines.
The Retail Trade Liberalization Act of 2000 or Republic Act 8762 and its Implementing Rules and Regulations, lay down the terms for retail trade business in the country, including provisions for ownership by foreign investors.
The General Banking Law of 2000 or Republic Act 8791 allows foreign ownership of local banks. The country’s central bank, the Bangko Sentral ng Pilipinas (BSP), acts as the supervisory body in charge of implementing this law. Click here for more information.
The Revised Securities Exchange Act of 2000 strengthens the supervisory and monitoring powers of the Securities and Exchange Commission over the Philippines stock market. This was signed into law on July 19, 2000. Click here to download the law.
Telecommunications-related laws implemented by the National Telecommunications Commission strengthen its policy and regulatory framework on telecommunications. Republic Act (R.A.) 7925 seeks to promote the development and the delivery of Philippine telecommunications services, and R.A. 6849 provides for the installation of public telephones in all municipality in the country. Click here to view these laws.