Tuesday, July 31, 2007
Bill to allow foreign firms into Cebu
COMPANIES wholly owned by foreigners may set up enterprises anywhere in Cebu once the proposed bill declaring the entire province as an economic development zone is approved.
Right now, the Constitution limits foreign ownership of companies to 40 percent. Filipinos must own the rest.
The eight Cebuano representatives to the Lower House proposed in a bill for the Cebu Economic Development Zone (Cedz) that “foreign citizens and companies owned by non-Filipinos in whatever proportion may set up enterprises” in Cebu.
The foreigners could do this “either by themselves or in joint venture with Filipinos in any sector or industry, finance, international trade and commerce.”
Referred to as House Bill 1319, the legislation will also allow enterprises registered with the planned Cebu Economic Development Zone Authority (Cedza) to employ foreign nationals in “supervisory and technical positions” for as long as 10 years.
If foreign investors own the majority of the capital stock of a corporation, foreign nationals may retain the positions of president, treasurer and general manager or their equivalents beyond 10 years, as long as the officers also own at least 10 percent of the stocks.
Limitations on foreign ownership were among the key points raised during the Philippines Investment Forum last month held here in Cebu, wherein heads of at least 300 companies from around the world converged.
Some businessmen, during the open forum, said they are hesitant to invest in something they don’t have complete control
over.
House Bill 1319 is apparently aimed at addressing this. The bill, signed by all Cebu congressmen the day after the controversial selection of House Speaker, also gives benefits to foreign nationals who will be allowed employment here.
Subject to Commonwealth Act 613, they and their families (as long as the child is under 21 years of age) will be entitled to multiple entry visas valid for a period of three years and will be allowed to enter and leave the Philippines without further documentary requirements other than valid passports.
As part of the incentives, they will also be exempted from obtaining alien certificate of registration and immigration clearance certificates and from securing the alien employment permits and other clearances.
“If there is anything clear in the world market of investments and community of investors, it is this: a country must look beyond the traditional way of doing things, must innovate to create opportunities, where and by it can give investors the maximum value for their investments,” read the explanatory note of House Bill 1319. (JPM)
For Bisaya stories from Cebu. Click here. (July 31, 2007 issue)
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