Section 47Republic Act No. 265 as amended;, Sec./Art. 47

Permissible Investments. If an investment by a non-Philippine national in an enterprise not registered under Book One hereof is such that the total participation by non-Philippine nationals in the outstanding capital thereof shall exceed forty percent (40%), the enterprise must obtain prior authority from the Board of Investments, which authority shall be granted unless the proposed investment

(a) Would conflict with existing constitutional provisions and laws regulating the degree of required ownership by Philippine nationals in the enterprise; or

(b) Would pose a clear and present danger of promoting monopolies or combinations in restraint of trade; or

(c) Would be made in enterprise engaged in an area adequately being exploited by Philippine nationals; or

(d) Would conflict or be inconsistent with the Investment Priorities Plan in force at the time the investment is sought to be made; or

(e) Would not contribute to the sound and balanced development of the national economy on a self-sustaining basis.

Investments made in the form of foreign exchange or other assets actually transferred to the Philippines shall also be registered with the Central Bank. The Board shall assess and appraise the value of such assets other than foreign exchange.

CHAPTER II

LICENSE TO DO BUSINESS