Atty. Lourielee L. Garcia

August 7, 2002 SEC OPINION Atty. Lourielee L. Garcia Camacho and Associates No. 7 Interior I, Old Balara, Capitol Hills, Quezon City Dear Atty. Garcia, This refers to your letter dated May 23, 2002 inquiring on the following issues: 1. whether your client, who wishes to engage the services of Filipino professionals for employment abroad, needs to secure a license from the SEC; and 2. whether there is a nationality requirement for the following business activities: (a) providing immigration assistance to Filipino professionals who wish to work abroad with an immigrant status, and (b) conducting orientation and review for Filipino professionals and other individuals who wish to migrate to the United States of America and other countries. On the first query, since the recruitment of professionals will be done on a regular basis, then, your foreign client should set up a company here to undertake his business activities and secure a license from the Securities and Exchange Commission and the Philippine Overseas Employment Administration. However, in the business of private recruitment, (whether for local or overseas employment), the Foreign Investments Act limits the foreign equity to only 25%. Hence, you may set up the corporation with Filipino investors to comply with the law. The capitalization required is not less than Two Million Pesos. On the second query, the activities enumerated therein are not covered by the Foreign Investment Negative List. Hence, the same may be undertaken by foreign corporations. DCHIAS Very truly yours, (SGD.) BENITO A. CATARAN Director Company Registration and Monitoring Department