January 28, 2019
SEC-OGC OPINION NO. 02-19
RE: DEFINITION OF FOREIGN NATIONALS UNDER RA 10881
Atty. Chin Chih Lin
Unit 318 Pacific Center Building,
No. 460 Quintin Paredes, Binondo,
Manila 1000
Dear Atty. Lin :
This refers to your letter dated 04 January 2018 requesting an opinion on whether the term "foreign national" under Republic Act (RA) No. 10881 1 in relation to RA 8556 or the Financing Company Act of 1998 refers only to individuals or likewise refers to corporations, associations, and/or juridical entities.
Briefly, you stated that your client seeks to establish a 100% foreign-owned financing company in the Philippines engaged solely in granting car and/or vehicle loans in light of RA 10881 which removed the nationality restriction for financing companies. The primary issue actually presented is whether a juridical entity like a foreign company incorporated under the laws of a foreign country may hold and/or own majority shares of stock of a financing company. If so, you also inquire as to the documentary requirements that must be prepared by the foreign company.
Under the rules of statutory construction, a word of...
