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PSIC 2019 · Sub-class
49400

Transport via pipeline

Capped at 40%

This sub-class involves the transportation of various commodities such as gases, liquids, water, and slurry through pipelines, as well as the operation of pump stations.

Includes

  • transport of gases via pipelines
  • transport of liquids via pipelines
  • transport of water via pipelines
  • transport of slurry via pipelines
  • operation of pump stations

Excludes

  • distribution of natural or manufactured gas, water or steam
  • transport of water, liquids, etc, by trucks 4933

Foreign ownership

Capped at 40%Applies to part of this class

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

Your exact activity may fall inside or outside this restriction. Confirm the classification with Emerhub before you rely on it.

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.

Structure100% foreignSell locallyNo PH partnerNo capital floorNo entityMin. capital
Domestic corporationUSD 200k
One Person CorporationUSD 200k
Branch officeUSD 200k
Representative officeFitsUSD 30k
Local corporation, minority foreignFitsLower / none
Employer of RecordFitsNone
Product holdingFitsNone

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.