Article 14Supplement v1, p. 14

COMMERCIAL LAWS SUPPLEMENT

(c) An undertaking that the multinational company will

remit into the country such amount as may be necessary

to cover its operations in the Philippines but which

amount will not be less than Fifty thousand United States

dollars ($50,000.00) or its equivalent in other foreign

currencies annually. Within thirty (30) days from receipt

of certificate of registration from the Securities and

Exchange Commission, the multinational company will

submit to the Securities and Exchange Commission a

certificate

of

inward

remittance

from

a

local

bank

showing that it has remitted to the Philippines the

amount of at least Fifty thousand United States dollars

($50,000.00) or its equivalent in other foreign currencies

and converted the same to Philippine currency. Annually,

within thirty (30) days from the anniversary date of the

multinational company's registration as a regional or area

headquarters

with

the

Securities

and

Exchange

Commission, it will submit proof to the Securities and

Exchange Commission of inward remittance amounting

to

at

least

Fifty

thousand

United

States

dollars

($50,000.00) or its equivalent in other foreign currencies

during the past year.

(d) Any violation by the regional or area headquarters of a

multinational company of any of the provisions of this

Code, or its implementing rules and regulations, or other

terms and conditions of its registration, or any provision of

existing laws, shall constitute a sufficient cause for the

cancellation of its license or registration. (as amended by

RA No 8756)

CHAPTER II Licensing Of Regional Operating Headquarters

ARTICLE

59.

Qualification

of

Regional

Operating

Headquarters (ROHQs). — Any foreign business entity

formed, organized and existing under any laws other than

those

of

the

Philippines

may

establish

a

regional

operating headquarters in the Philippines to service its

own affiliates, subsidiaries or branches in the Philippines,

in the Asia-Pacific Region and other foreign markets.

ROHQs will be allowed to derive income by performing

the qualifying services enumerated under paragraph (b)1

hereunder. ROHQs of non-banking and non-financial

institutions are required to secure a license from the

Securities and Exchange Commission, upon the favorable

recommendation of the Board of Investments. ROHQs of

banking and financial institutions, on the other hand, are

required

to secure licenses from the Securities and

Exchange

Commission

and

the

Bangko

Sentral

ng

Pilipinas, upon the favorable recommendation of the

Board of Investments.

The

Securities

and

Exchange

Commission

and

the

Bangko Sentral ng Pilipinas shall, within thirty (30) days

from the effectivity of this Code, issue the implementing

rules and regulations.

The following minimum requirements shall be complied

with by the said foreign entity:

(a) A certification from the Philippine Consulate/Embassy,

or

a

duly

authenticated

certification

from

the

Department of Trade and Industry or its equivalent in the

foreign firm's home country that said foreign firm is an

entity

engaged

in

international trade with affiliates,

subsidiaries or branch offices in the Asia-Pacific Region

and other foreign markets.

(b) A duly authenticated certification from the principal

officer of the foreign entity to the effect that the said

foreign

entity

has

been authorized by its Board of

Directors or governing body to establish its regional

operating headquarters in the Philippines, specifying

that:

(1) The regional operating headquarters may engage in

any of the following qualifying services:

— General administration and planning;

— Business planning and coordination;

—

Sourcing/procurement

of

raw

materials

and

components;

— Corporate finance advisory services;

— Marketing control and sales promotion;

— Training and personnel management;

— Logistics services;

— Research and development services, and product

development;

— Technical support and maintenance;

— Data processing and communication; and

— Business development.

ROHQs are prohibited from offering qualifying services to

entities

other

than

their

affiliates,

branches

or

subsidiaries, as declared in their registration with the

Securities and Exchange Commission nor shall they be

allowed to directly and indirectly solicit or market goods

and services whether on behalf of their mother company,

branches, affiliates, subsidiaries or any other company.

(2) The regional operating headquarters shall notify the

Board

of

Investments,

the

Securities

and

Exchange

Commission and the Bangko Sentral ng Pilipinas, as the

case may be, of any decision to close down or suspend

operations of its headquarters at least fifteen (15) days

before the same is effected

(c) An undertaking that the multinational company will

initially remit into the country such amount as may be

necessary to cover its operations in the Philippines but

which

amount

will

not

be

less

than Two hundred

thousand

United

States

dollars

($200,000.00)

or

its

equivalent in other foreign currencies.

Within thirty (30) days from receipt of certificate of

registration, the multinational company will submit to the

Securities and Exchange Commission a certificate of

inward remittance from a local bank showing that it has

remitted to the Philippines the amount of at least Two

hundred thousand United States dollars ($200,000.00) or

its equivalent in other foreign currencies and converted

the same to Philippine currency.

(d) Any violation by the regional operating headquarters

of a multinational company of the provisions of this Code,

or its implementing rules and regulations, or other terms

and conditions of its registration, or any provision of

existing laws, shall constitute a sufficient cause for the

cancellation of its license or registration.

(as amended by RA No 8756)

CHAPTER III Incentives to Expatriates

ARTICLE 60. Multiple Entry Visa. — Foreign personnel of

regional or area headquarters and regional operating

headquarters

of

multinational

companies,

their

respective

spouses

and

unmarried

children

under

twenty-one (21) years of age, if accompanying them or if

following to join them after their admission into the

Philippines as non-immigrant shall be issued a multiple

entry

special

visa

within

seventy-two

hours

upon

submission of all required documents, and which shall be

valid

for

a

period

of

three

(3)

years

to

enter

the

Philippines: Provided, That a responsible officer of the

applicant

company

submits

a

duly

authenticated

certificate to the effect that the person who seeks entry

into the Philippines is an executive of the applicant

company and will work exclusively for applicant's regional

or area headquarters or regional operating headquarters

which is duly licensed to operate in the Philippines, and

that he will receive a salary and will be paid by the

headquarters in the Philippines an amount equivalent to

at

least

Twelve

thousand

United

States

dollars

($12,000.00), or the equivalent in other foreign currencies

per annum.

The admission and stay shall be coterminus with the

validity

of

the multiple entry special visa. The stay,

however, is extendible for three years upon submission to

the Bureau of Immigration of a sworn certification by a

responsible officer of the regional or area headquarters or

regional

operating

headquarters:

that

its

license

to

© Compiled by RGL

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