June 4, 2018
SEC-OGC OPINION NO. 10-18
RE: RETAIL TRADE
First Associated Medical Distribution Co.,Inc.
FCI Corporate Center, 1814 Philip Street,
Multinational Village Parañaque City,
Metro Manila, Philippines 1708
Attention: Ricarte R. Padilla
President
Sir :
This refers to your letter dated 15 February 2017, requesting the Commission's opinion on whether or not Medtronic Philippines, Inc. (Medtronic-PH) can be classified as a foreign company engaged in business in the Philippines, and whether it is allowed to engage in direct selling its products to end-users.
In your letter, you stated that First Associated Medical Distribution Co.,Inc. is the distributor on a non-exclusive basis of Medtronic, Inc. ("Medtronic-US"),a US based manufacturing company with regional office in Singapore, of its coronary and surgical technologies products in the Philippines. However, sometime on 10 January 2014, Medtronic-US formed a domestic corporation here in the country, Medtronic-PH, with a total capitalization of P8,940,000.00, by owning at least 99.99% of the outstanding capital stock of the said corporation with the primary purpose, to wit:
"To import, export, manufacture, conduct research and development, prepare for market, buy, sell at wholesale,distribute, transport and promote general...
