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PSIC 2019 · Sub-class
26300

Manufacture of communication equipment

Open to 100%

This sub-class involves the production of communication equipment that transmits signals electronically, including devices for telephone and data communications, as well as broadcasting equipment.

Includes

  • Manufacture of central office switching equipment
  • Manufacture of cordless telephones
  • Manufacture of private branch exchange (PBX) equipment
  • Manufacture of telephone and facsimile equipment including telephone answering machines
  • Manufacture of data communications equipment, such as bridges, routers, and gateways
  • Manufacture of transmitting and receiving antenna
  • Manufacture of cable television equipment
  • Manufacture of pagers
  • Manufacture of cellular phones
  • Manufacture of mobile communication equipment
  • Manufacture of radio and television studio and broadcasting equipment, including television cameras
  • Manufacture of modems and carrier equipment
  • Manufacture of burglar and fire alarm systems, sending signals to a control station
  • Manufacture of radio and television transmitters
  • Manufacture of infrared devices (e.g. remote controls)

Excludes

  • Manufacture of computers and computer peripheral equipment 2620
  • Manufacture of consumer audio and video equipment 2640
  • Manufacture of electronic components and subassemblies used in communications equipment 261
  • Manufacture of internal/external computer modems (PC-type) 261
  • Manufacture of electronic scoreboards 2790
  • Manufacture of traffic lights 2790

Foreign ownership

Open to 100%

This activity is not on the 12th Foreign Investment Negative List. A foreign investor may hold up to 100%, subject to the minimum-capital rules below.

Recommended route

Foreign-owned corporation

Up to 100% foreign equity (SEC)

One Person Corporation

A single foreign owner

Branch office

Extension of a foreign parent

Entity types

Which structure fits depends on your goal. Rows that suit this activity are highlighted. Open a row for the full detail.

Structure100% foreignSell locallyNo PH partnerNo capital floorNo entityMin. capital
Domestic corporationFits✓✓✓✕✕USD 200k
One Person CorporationFits✓✓✓✕✕USD 200k
Branch officeFits✓✓✓✕✕USD 200k
Representative officeFits✓✕✓✕✕USD 30k
Local corporation, minority foreign✕✓✕✓✕Lower / none
Employer of RecordFits–✕✓✓✓None
Product holdingFits–✓✓✓✓None

Registration path

  1. 1

    SEC

    Incorporate the entity

  2. 2

    BIR

    Tax registration and books

  3. 3

    LGU

    Barangay clearance and Mayor’s permit

  4. 4

    Regulator

    Sector license, if the activity needs one

Emerhub files each step with the government; you provide the documents and information.

Minimum paid-up capital

SituationUSDPHP
Domestic-market enterprise (>40% foreign)Paid-up capital for foreign equity above 40% serving the local market. Legal basis: FIA (RA 7042 as amended).$200,000≈ ₱11.4M
Reduced thresholdAt least 50 direct employees, or advanced technology. Legal basis: FIA (RA 7042 as amended).$100,000≈ ₱5.7M
Export enterpriseExports at least 60% of output. Legal basis: Corporation Code (RA 11232).≈ $88₱5,000
Retail trade enterpriseMinimum paid-up capital for foreign retail. Legal basis: RA 11595.≈ $439k₱25,000,000

Bold is the figure the law sets; the other column is an approximate conversion at ₱57 to USD 1.

Incentives

This activity may be eligible for BOI/PEZA income-tax holidays and enhanced deductions under the Strategic Investment Priority Plan (SIPP), CREATE MORE.

  • May qualify for Tier III

    Manufacture of Internet of Things (IoT) devices

    Legal basis: 2022 Strategic Investment Priority Plan (BOI MC No. 2022-023), Tier III - highly technical manufacturing activity

    This activity is a close match to the named SIPP priority, not an exact quote, so confirm the fit.

Eligibility is activity-specific and confirmed by the BOI. Emerhub can assess your activity and file your incentive application.

Mapped to the 2022 SIPP. A 2026 SIPP is now in force, so confirm current priority status with the BOI before you rely on this.