Development Consultants International Ltd.

December 10, 1982 Development Consultants International Ltd. c/o Atty. Ismael B. Tabo 10th Floor, Ramon Magsaysay Center Roxas Boulevard, Manila Gentlemen: This has reference to your letter dated December 7, 1982, inquiring as to whether the Development Consultants International Limited, a foreign corporation organized under the laws of Hongkong, with an existing branch office in the Philippines may be allowed to establish a Regional Headquarter in the Philippines under P.D. 218, as amended by P.D. 348. The provisions of law pertinent to your query is Section 8 of P.D. 218, as amended, which provides in part: "SECTION 8. Any foreign business entity formed, organized or existing under any laws other than those of the Philippines whose purpose, . . . is to supervise, superintend, inspect or coordinate its own affiliates, subsidiaries or branches in the Asia-Pacific Region may establish a regional or area headquarters in the Philippines, after securing a license therefore from the Securities and Exchange Commission . . . . . . The following minimum requirements shall however, be complied with by the said foreign entity: (a) A certification from the Philippine Commercial Attach or in the absence of such an official, a Philippine Consul 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. (b) A certification from a 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 headquarters in the Philippines specifying that: (1) The activities of the regional headquarters shall be limited to acting as supervisory, communications and coordinating center for its affiliates, subsidiaries and branches of the region. (2) The headquarters will not derive any income from sources within the Philippines and will not participate in the management of any subsidiary or branch office it might have in the Philippines . (Emphasis supplied) (c) And undertaking that the multinational company will remit into the country such amounts as may be necessary to cover its operations in the Philippines but which amount will not be less than fifty thousand United States dollars or its equivalent in other foreign currencies annually. . . xxx xxx xxx" From the foregoing provisions, particularly paragraph (b)-(2) thereof, it can be inferred that a foreign company with an existing branch office in the Philippines, may be allowed to establish a regional headquarters in the Philippines, provided that the restrictions/requirements as aforecited, are observed and/or complied with. Please be advised accordingly. Very truly yours, (SGD.) JESUS J. VALDES Associate Commissioner