Electric power distribution
Electric power distribution.
Excludes
- Production of electricity through incineration of waste (class 3510 exclusion)
Foreign ownership
Foreign equity in this activity is capped at 40% under the Negative List. A local corporation with structured local control is the usual route to the local market.
Legal basis: FINL A.18 · Section 11, Article XII of the Constitution; Section 13 of CA No. 146, as amended by Section 4 of RA No. 11659; Section 2(a), 2(b) and 2(m) of RA No. 7718
Recommended route
Local corporation, structured control
Foreign equity up to 40%, with a structured local-control arrangement
Joint venture
A Filipino partner holds the balance above the 40% ceiling
Entity types
Which structure fits depends on your goal. Rows that suit this activity are highlighted. Open a row for the full detail.
| Structure | 100% foreign | Sell locally | No PH partner | No capital floor | No entity | Min. capital |
|---|---|---|---|---|---|---|
| Domestic corporation | ✓ | ✓ | ✓ | ✕ | ✕ | USD 200k |
| One Person Corporation | ✓ | ✓ | ✓ | ✕ | ✕ | USD 200k |
| Branch office | ✓ | ✓ | ✓ | ✕ | ✕ | USD 200k |
| Representative officeFits | ✓ | ✕ | ✓ | ✕ | ✕ | USD 30k |
| Local corporation, minority foreignFits | ✕ | ✓ | ✕ | ✓ | ✕ | Lower / none |
| Employer of RecordFits | – | ✕ | ✓ | ✓ | ✓ | None |
| Product holdingFits | – | ✓ | ✓ | ✓ | ✓ | None |
Registration path
- 1
SEC
Incorporate the entity
- 2
BIR
Tax registration and books
- 3
LGU
Barangay clearance and Mayor’s permit
- 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
| Situation | USD | PHP |
|---|---|---|
| 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.