Section 19. Qualification of Applicants. —

To be entitled to registration, an applicant must satisfy the Board that:

1. It possesses the qualifications prescribed for registered enterprises in Section three, paragraph (b) of this Act; or if it does not possess the required degree of ownership by Philippine Nationals, the following circumstances must be satisfactorily established:

   1. That it is otherwise qualified under Section three, paragraph (b) of this Act;

   2. That it proposes to engage in a pioneer project, as defined in Section three, paragraph (h) of this Act which, considering the nature and extent of capital requirements, processes, technical skills and relative business risks involved, is in the opinion of the Board of such a nature that the available measured capacity thereof cannot be readily and adequately filled by Philippine Nationals;

   3. That it obligates itself to attain the status of a Philippine National, as defined in Section three, paragraph (f) of this Act within thirty (30) years from the date of registration by having its shares of stock listed with a Philippine stock exchange within fifteen (15) years from the date of registration and actually offering for sale the said shares to Philippine Nationals immediately after the said period: Provided, however, That in case of a registered enterprise exporting at least seventy per cent (70%) of its total production, it shall attain the status of a Philippine National within forty (40) years from date of registration by listing its shares of stock within twenty-five (25) years from date of registration and actually selling its shares after the said period: Provided, further, That the Board may extend this period for another ten (10) years, subject to such conditions as it may impose in the national interest, and upon proof by the registered enterprise that it has exerted its best efforts to sell the required number of shares to Philippine Nationals, as required by this Section but Philippine Nationals have not bought the same and for such other cause as the Board may deem sufficient to justify the extension of the period;

   4. That the pioneer area it will engage is one that is not within the activities reserved by the Constitution or other laws of the Philippines to Filipinos or corporations owned or controlled by Filipino citizens.

2. The enterprise is proposing to start and operate a preferred or pioneer project, or only a pioneer project in the case of non-Philippine enterprises, within a reasonable time to be fixed by the Board;

3. The enterprise is capable of operating on a sound and efficient basis and of contributing to the national development of the preferred or pioneer area in particular and of the national economy in general;

4. If the enterprise is engaged or proposes to engage in undertakings or activities other than preferred or pioneer projects in addition to the project mentioned in subsection (b) hereof, it has installed or undertake to install an accounting system adequate to identify the investments, revenues, costs, and profits or losses of each preferred or pioneer project undertaken by the enterprise separately from the aggregate investment, revenues, costs, and profits or losses of the whole enterprise or to establish a separate corporation for each preferred or pioneer project if the Board should so require to facilitate proper implementation of this Act.

Notwithstanding the provisions of paragraphs (a) and (b) of this Section, if the measured capacity of any preferred, non-pioneer area is not filled within three years from the date of its declaration as a preferred, non-pioneer area, the Board shall allow enterprises not possessing the required percentage of Philippine ownership and control, but otherwise qualified, to be registered in such areas, under the conditions prescribed above for pioneer areas.