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PART II
LICENSING AND REGULATION
RULE I
Private Sector Participation in the Overseas Employment Program
SECTION 1.Participation of the Private Sector.— The private sector shall participate in the recruitment
of Filipino workers for overseas employment in accordance with these Rules and any subsequent
guidelines that may be issued by the POEA Governing Board and the Administration.
SECTION 2. Who may participate; Required Capitalization. — Any Filipino citizen acting as a sole
proprietor or a partnership, or a corporation at least seventy-five percent (75%) of the authorized and
voting capital stock of which is owned and controlled by Filipino citizens, may engage in the business
of recruitment and placement of Filipino workers.
The sole proprietor and partnership shall have a minimum capitalization of Five Million Pesos
(PhP5,000,000.00) and a minimum paid up capital of Five Million Pesos (PhP5,000,000.00) in case of
a corporation.
Those with existing licenses shall, within four (4) years from effectivity hereof, increase their
capitalization or paid up capital, as the case may be, to Five Million Pesos (PhP5,000,000.00) at the
rate of Seven Hundred Fifty Thousand Pesos (PhP750,000.00) every year.
SECTION 3. Who are Disqualified. — The following persons and entities are disqualified to participate
or engage in the recruitment and placement of workers for overseas employment:
a. Travel agencies and sales agencies of airline companies;
b. Officers or members of the Board of any corporation or partners in a partnership engaged
in the business of a travel agency;
c. Corporations and partnerships, where any of its officers, members of the board or partners
is also an officer, member of the board or partner of a corporation or partnership engaged
in the business of a travel agency;
d. Individuals, partners, officers or directors of an insurance company who make, propose or
provide an insurance contract under the compulsory insurance coverage for agency-hired
Overseas Filipino Workers;
e. Sole proprietors, partners or officers and members of the board with derogatory records,
such as, but not limited to the following:
1. Those convicted, or against whom probable cause or prima facie finding of guilt is
determined by a competent authority, for illegal recruitment, or for other related crimes
or offenses committed in the course of, related to, or resulting from, illegal recruitment,
or for crimes involving moral turpitude;
2. Those agencies whose licenses have been revoked for violation of RA 8042 (Migrant
Workers and Overseas Filipinos Act of 1995), as amended, PD 442 (Labor Code of the
Philippines), as amended, and RA 9208 (Trafficking in Persons Act of 2003), as
amended, and their implementing rules and regulations;
3. Those agencies whose licenses have been cancelled, or those who, pursuant to the
Order of the Administrator, were included in the list of persons with derogatory record
for violation of recruitment laws and regulations; and
f. Any official or employee of the DOLE, POEA, OWWA, DFA, DOJ, DOH, BI, IC, NLRC,
TESDA, CFO, NBI, PNP, Civil Aviation Authority of the Philippines (CAAP), international
airport authorities, and other government agencies directly involved in the implementation