Defense activities
This sub-class covers the administration and operation of military defense activities, including various defense forces and support for civil defense operations.
Includes
- Administration, supervision, and operation of military defense affairs
- Operation of land, sea, air, and space defense forces
- Management of combat and non-combat forces, including engineering, transport, and intelligence
- Support for reserve and auxiliary forces of the defense establishment
- Military logistics, including provision of equipment and supplies
- Health activities for military personnel in the field
- Administration and support of civil defense forces
- Support for contingency plans and exercises involving civilian institutions
- Administration of defense-related R&D policies and funds
Excludes
- Scientific research and development 72
- Provision of military aid to foreign countries 8421
- Activities of military tribunals 8423
- Provision of supplies for domestic emergency use in case of peacetime disasters 8423
- Educational activities of military schools, colleges and academies 8540
- Activities of military hospitals
Foreign ownership
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
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 |
Bold is the figure the law sets; the other column is an approximate conversion at ₱57 to USD 1.