| Registration of Foreign Corporation in the Philippines | | | | Banks (in cases of Foreign banks) and the Security |
| The Executive Branch of the Philippine Government | | | | and Exchange Commission (for other foreign |
| has various agencies, instrumentalities, departments, | | | | corporation registered or licensed to do business in the |
| bureaus and entities that are under the control and | | | | Philippines). |
| supervision of the Philippine President. The different | | | | Whenever service of Summons is so made to the |
| heads of the agencies and departments are | | | | government official, the government official shall be |
| considered as an alter-ego of the President. The | | | | obliged to transmit the same by mail or other legal |
| Philippine Economic Zone Authority (PEZA) and Board | | | | process to the corporation concerned. |
| of Investment (BOI) are instrumentalities under the | | | | |
| Executive Department of the Philippine Government. | | | | Internal Trade |
| It is a well-settled rule that a corporation established | | | | Foreign Corporation registered in PEZA and BOI can |
| under foreign laws is considered a foreign corporation. | | | | carry on substantial internal trade. The foreign |
| In this jurisdiction, a foreign corporation duly registered in | | | | corporation can also direct and develop operations and |
| or licensed by government entities like the PEZA and | | | | enterprises of domestic corporations. Furthermore, it |
| the BOI can acquire legal personality, engage in internal | | | | can invest a considerable amount of capital to certain |
| trade, and is obliged to respect the Principle of | | | | enterprises. |
| Reciprocity among nations. | | | | Moreover, the corporation can also purchase shares |
| Legal Personality | | | | of stocks in a legitimate stock market for a minimum |
| Registration of a foreign corporation in the appropriate | | | | share authorized by law. Thus, registration in PEZA |
| departments and government entities vest legal title or | | | | and BOI authorizes the foreign corporation to freely |
| personality to foreign corporation to engage business | | | | engage in business ventures with in the Philippine |
| inside the Philippine jurisdiction. | | | | jurisdiction. |
| A duly licensed or registered foreign corporation has | | | | Under the law, the President of the Philippines may |
| the power to sue and can be sued in Philippine courts. | | | | allow entry of foreign corporation when warranted by |
| Absence of licensed or registration will not entitle the | | | | public interest, such as oil drilling companies, Board of |
| foreign corporation to sue but can be sued instead. | | | | Investments, registered enterprises and Philippine |
| However, a foreign corporation is authorized to sue | | | | Economic Zone Authority registered enterprises. |
| even if not licensed or registered when it only engages | | | | |
| in isolated transactions and when the law specifically | | | | Principle of Reciprocity |
| provides. | | | | The principle of reciprocity speaks of mutuality among |
| Under the Philippine law, a court can obtain jurisdiction | | | | the party states. Benefits given by a state to citizens |
| over foreign corporation by the proper service of | | | | of another state who are found within the country of |
| summons. Service of summons to foreign corporation | | | | the granting state shall also be granted to the citizens |
| which has transacted business in the Philippines | | | | found within the partner state. Usually, the Principle of |
| whether licensed/ registered or in an isolated | | | | Reciprocity is in a form of a treaty, signed by different |
| transaction maybe made on its resident agent | | | | representatives of party states. In this jurisdiction, the |
| designated by law for that purpose, or in case there is | | | | legislative departments can enact laws that can be |
| no agent, the government official designated by law, | | | | favorable to a registered foreign corporation, provided |
| such as the Insurance Commissioner (in cases of | | | | such is also granted to the Filipino citizens who are |
| foreign insurance corporation), the Superintendent of | | | | within the jurisdiction of the grantee state. |