Philippines: Labor Advisory for Non-Philippine Nationals Intending To Engage In Business

Published on Jan 28, 2023

On October 24, 2022, the Department of Labor and Employment ("DOLE") issued Labor Advisory No. 20, series of 2022, which sets out the process for the issuance of the certification required from non-Philippine nationals intending to engage in business in the Philippines.

Under the Implementing Rules and Regulations of the Foreign Investments Act of 1991, as amended, all non-Philippine nationals intending to engage in micro and small domestic market enterprises with a paid-in equity capital of at least USD100,000, but not equal to or more than USD200,000, shall be required to obtain a certification from the concerned DOLE Regional Office, for purposes of registration with the Securities and Exchange Commission ("SEC") and Department of Trade and Industry ("DTI").

Under the Labor Advisory, the applicant must first fill-out the Request for Certification Form ("Request Form"), a sample of which is attached to the Labor Advisory. The filled-out Request Form must be submitted to the DOLE Regional Office together with the following requirements:

[a] Notarized Undertaking signed by the Owner/President of the company indicating that the majority of the applicant's direct employees shall be Filipinos and that in no case shall the number of Filipino direct employees be less than 15 (a pro-forma undertaking is attached to the Labor Advisory);

[b] Photocopy of the Passport bio-page and if applicable, photocopy of a valid visa of the foreign Owner/President;

[c] Notarized Special Power of Attorney, in case the request is filed by an authorized representative of the applicant; and

[d] Photocopy of one valid government-issued I.D. of the authorized representative.

Upon submission of the Request Form, the applicant will be required to pay the Certification Fee of PhP500. After the submission of the complete requirements, the DOLE Regional Office shall issue the certification in accordance with Republic Act No. 11032, or the Ease of Doing Business Law. Visit www.syciplaw.com to access the January issue of the Employment & Immigration Update.