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PSIC 2019 · Sub-class
29100

Manufacture of motor vehicles

Open to 100%

This sub-class covers the manufacture of various types of motor vehicles, including passenger cars, commercial vehicles, and motor vehicle engines, as well as the rebuilding of these engines.

Includes

  • Manufacture of passenger cars
  • Manufacture of commercial vehicles such as vans, lorries, and over-the-road tractors for semi-trailers
  • Manufacture of buses, trolley-buses, and coaches
  • Manufacture of motor vehicle engines
  • Manufacture of chassis fitted with engines
  • Manufacture of other motor vehicles including snowmobiles, golf carts, amphibious vehicles, fire engines, street sweepers, travelling libraries, and armored cars
  • Manufacture of concrete-mixer lorries
  • Factory rebuilding of motor vehicle engines

Excludes

  • Manufacture of lighting equipment for motor vehicles 2740
  • Manufacture of pistons, piston rings and carburetors 2811
  • Manufacture of agricultural tractors 2821
  • Manufacture of tractors used in construction and mining 2824
  • Manufacture of off-road dumping trucks 2824
  • Manufacture of bodies for motor vehicles 2920
  • Manufacture of electrical parts for motor vehicles 2930
  • Manufacture of parts and accessories for motor vehicles 2930
  • Manufacture of tanks and other military fighting vehicles 3040
  • Maintenance, repair and alteration of motor vehicles 4520

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

Compare all company structures

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

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 II

    Assembly of electric vehicles (EV)

    Legal basis: 2022 Strategic Investment Priority Plan (BOI MC No. 2022-023), Tier II - green ecosystem value-chain activity

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.