President Duterte has made it easier for foreigners to invest in the Philippine retail sector.
This, after Duterte enacted Republic Law (RA) # 11595, which amended RA # 8762 or the two-decade-old Retail Liberalization Law.
The full title of the new law reads: “Law amending the Law of the Republic No. 8762, also known as the” Retail Trade Liberalization Law of 2000 “, lowering the paid-up capital required for foreign retail businesses and other purposes. “It was signed by the president on December 10.
Under AR No. 11595, the minimum paid-up capital for foreign retail investors is lowered to 25 million pesos.
Based on the previous version of the law, foreigners can set up wholly owned businesses with a minimum paid-up capital of $ 2.5 million or some 127 million pesos, subject to certain requirements.
This legal revision was demanded by the group of local companies. It was mentioned by Duterte as a priority measure during his last State of the Nation Address (SONA) in July 2021.
Supporters of the bill expect the country to receive an increase in foreign direct investment or FDI with greater openness of the local retail sector.
According to the four-page law, the Department of Trade and Industry (DTI), the Securities and Exchange Commission (SEC) and the National Economic and Development Authority (NEDA) will review the required minimum paid-up capital every three years.
It provides for a “minimum investment per store” “which” will include the value of gross assets, whether tangible or intangible, including, but not limited to, buildings, leases, furniture, equipment, inventory and assets. facilities for common use ”.
“In the case of foreign retailers engaged in retail trade through more than one physical store, the minimum investment per store must be at least 10 million pesos,” he added.
SUBSCRIBE TO THE DAILY NEWSLETTER
CLICK HERE TO REGISTER