For many foreigners, relocating to Bohol is about more than retirement—it’s about building a new, purposeful chapter through entrepreneurship. Understanding the legal landscape is crucial to turning your business vision into a compliant, successful reality. This guide outlines the essential rules for ownership and provides a clear path to establishing your venture in paradise.
The Fundamental Rule: The 60/40 Ownership Principle
The cornerstone of Philippine business law for foreigners is the 60/40 rule, derived from the Constitution. In many sectors, a domestic corporation must be at least 60% owned by Filipino citizens, limiting foreign ownership to a maximum of 40%.
What This Means For You:
You cannot be the sole owner of a Philippine corporation in most retail, service, and domestic market-focused industries.
You must have at least one Filipino partner who holds the majority (60%) of the shares.
This makes finding a trustworthy, capable, and aligned Filipino partner your single most important business task.
Sectors with Exceptions:
Fully foreign-owned corporations (100% ownership) are possible in export-oriented industries (where 60%+ of output is exported), advanced technology projects, and certain activities on the Philippine Investment Priorities Plan. Most small to medium businesses in Bohol (like resorts, cafes, or academies) fall under the 60/40 rule.
The Land Ownership Restriction
A critical and non-negotiable rule: Foreign individuals cannot directly own land in the Philippines. However, there are fully legal and secure pathways to control and use property:
Long-Term Lease: You can lease land for a maximum initial term of 50 years, with an option to renew for another 25 years. This is the most common and secure method for foreigners to build a home or business.
Condominium Ownership: You can fully own a condominium unit, provided that at least 60% of the building’s units are owned by Filipinos.
Corporation Ownership: A Philippine corporation (subject to the 60/40 rule) can own land. While the corporation owns the land, you, as a 40% owner, have rights to its use. This is a common structure for business properties.
Two Pathways to Start Your Business
Pathway 1: Starting a New Business (The Build-It Approach)
Find Your Filipino Partner: This is a relationship-based process. Look for someone who shares your vision, complements your skills, and has local market knowledge. Clear partnership agreements outlining roles, responsibilities, and profit-sharing are essential.
Register Your Business Structure: With your partner, you will register a domestic corporation with the Securities and Exchange Commission (SEC). This establishes the legal entity that will own the business assets.
Secure Licenses & Permits: Obtain a Barangay Clearance, Mayor’s Business Permit, and register with the Bureau of Internal Revenue (BIR) for taxation.
Execute Your Plan: Secure your location (via lease or corporate purchase), build or fit out your space, and launch operations.
Pathway 2: Purchasing an Existing Business (The Turnkey Approach)
Conduct Rigorous Due Diligence: This is non-negotiable. You must verify the business’s financial health, legal standing, asset ownership, and existing contracts. Professional help is highly recommended.
Structure the Purchase: Typically, you do not buy the business assets directly. Instead, you and your Filipino partner purchase the shares of the existing corporation that owns the business. This transfers all assets and liabilities to your new ownership structure.
Update Registrations: The SEC and BIR registrations must be updated to reflect the new corporate officers and ownership (maintaining the 60/40 split).
A Unique, Turnkey Business Opportunity: The Elite Baseball Academy Franchise
For those passionate about sports and community impact, the Bohol Coconuts Baseball Club offers a pioneering and compelling franchise opportunity: The Elite Youth Baseball Academy.
Why This Franchise Stands Out:
Proven System & Legacy Mission: You’re not just opening a gym. You’re activating a complete curriculum designed by international coach Marvin “Merv” Moore to develop elite talent. You become part of a mission to revive the Philippines’ historic baseball prominence, which began by winning the first Asian Baseball Championship in 1954.
Exceptionally Low Barrier to Entry: The franchise fee is only $1,500. Combined with a lean annual operating budget of $3,000 – $10,000, this makes it one of the most accessible and financially viable business entries in Bohol.
High-Impact Revenue Model: The core model focuses on developing teenage prospects for MLB and NPB (Japanese league) scouts. For every prospect you develop who signs a professional contract, your academy earns a 5% agent fee—a potentially transformative return.
Multiple Community Revenue Streams: Beyond player fees, the academy is designed to integrate and earn through local sponsorships, uniform advertising, merchandise sales, community partnerships (like animal husbandry or vegetable projects that supply the academy), and fundraising events.
Built-In Support & Network: Franchisees receive operational guidelines, marketing support, and become part of the Bohol Youth Sports Association, creating immediate competition and camaraderie.
This franchise is ideal for someone who wants a purpose-driven business that seamlessly integrates into the heart of the Boholano community, offering both financial potential and profound personal fulfillment.
Navigating Your Business Journey with Confidence
The processes of partner matching, due diligence, and legal registration are where most challenges arise. This is where local, trusted guidance is invaluable.
At Move 2 Bohol, we specialize in turning your entrepreneurial dream into a compliant, operational business. Our services include:
- Local Partner Vetting & Matching leveraging deep community ties.
- Business Registration & Legal Setup from SEC to Mayor’s Permit.
- Comprehensive Due Diligence for business acquisitions.
- Introduction to unique opportunities like the Baseball Academy franchise.
Bohol offers a fertile ground for smart, respectful, and well-structured foreign investment. By understanding the rules and choosing the right pathway—whether building your own venture or adopting a turnkey model like the baseball academy—you can create a thriving business that contributes to your new island home.
Interested in exploring business ownership in Bohol? Contact us for a consultation to discuss your ideas, the 60/40 rule in detail, or to receive the full prospectus for the Elite Baseball Academy franchise.