⌛ investor contracts

i am planning to put up a beach resort but have no idea on investor contracts. I intend to have one more investor or two if necessary. It can be difficult to have other investors in a business because sometimes conflict occurs. I am open to information on investor contracts/shares and ideas in putting up a beach resort.

 

In the interest of putting everyone on the same page and alleviate confusion, I have copied your post on a different forum, as well as my response to it;

Originally Posted by gracie View Post
any tips on where i can find laws in putting up a beach resort, where i will have two other investors? i don't have any idea about contracts that would make me safe against being taken over by the investors...technicalities for example. One of the would be investors is a truly foreigner and 2 are natural born citizens but have a foreign citizenship.


My response;


There are no contracts that will make it "safe" for a foriegner from having his/her investments being taken over by Filipino investors. Your natural born citizens would have to reaquire Philippine citizenship, which is not a big issue. They would need to become dual citizens under RA 9225;

Philippines : Gov.Ph : Frequently Asked Questions : Philippines

Probably your best bet would be to form a corporation. You must have 5 stockholders to form a corporation, of which can be a maximum of 40% foriegn owned and 4 stockholders must be Filipino. Just be sure that you do not fall astray of the anti dummy law, PD 715;

P.D. No. 715

There are other options for someone investing a tidy sum, roughly 1 million USD or so. This country is not very foriegner friendly when it comes to laws to protect their investments. Most laws and courts will always favor the Filipino.

Good luck!

Larry

 

One of the examples why you have to be careful investing in philippines.
please read:

http://www.nytimes.com/2003/04/30/b...lippines-airport.html?sec=&spon=&pagewanted=1