House Bill 8764 to Boost SMEs
Passing of the bill includes the amendment of the Foreign Investments Act of 1991.
According to Leyte Rep. Henry C. Ong, the chairman of House Committee on Banks and Financial Intermediaries, HB8764’s passing will open up more opportunities for foreign investments for small and medium enterprises with paid-in equity capital of up to $200,000.00.
Provided, however, that these businesses involve “advanced technology and employ at least fifteen direct employees”.
The bill also allows a minimum paid-in capital of $100,000.00 from foreign business owners. This presents a great opportunity — especially for those who wish to invest in start-ups in the country.
“I believe HB 8764 will be a catalyst for growth of the SMEs engaged in the creation, development, and rollout of financial technologies and mobile applications for our smart phones and financial inclusion,” said Ong.
The establishment of a Department of Investments Promotion and Development is also one of the goals of HB 8764, taking its cue from neighboring countries like Indonesia and Vietnam who managed to attract foreign investments from the government agency specifically focused on the promotion of investments.
As Ong mentioned, the HB 8764 aims to “simplify and make less confusing to domestic and foreign investors the system and ways of investing” in the country.