Business bank account in the Philippines: local company or branch

Structures available to a foreign investor

A business bank account in the Philippines is opened in the name of a company registered with the SEC, or a licensed branch of a foreign company, after checks on registration documents, shareholders, beneficial owners and BIR tax registration. A foreigner can use a domestic stock corporation, a One Person Corporation, a branch office or a representative office, each with its own set of documents.

To hold a company bank account in the Philippines, a foreigner can set up a domestic stock corporation, a One Person Corporation since the 2019 Revised Corporation Code, a branch office or a representative office. Each form is registered with the Securities and Exchange Commission and receives its own set of documents.

Capital and sectors restricted to foreigners

Some activities remain wholly or partly reserved to Filipinos under the Foreign Investment Negative List. A majority foreign-owned company serving the domestic market must in principle have high minimum paid-in capital, with exceptions for certain technology or export activities.

Paying in capital to the SEC before incorporation

To incorporate, the SEC often requires proof that subscribed capital has been paid in, obtained through a temporary bank deposit. For a foreign investor, this inward payment must be properly documented and converted by a Philippine bank.

Corporate documents and the General Information Sheet

The bank asks for the SEC certificate of registration, articles, by-laws, the latest General Information Sheet listing directors, officers and beneficial owners, and a board resolution naming signatories. Municipal business permits complete the file.

BIR registration and official invoicing

Every business must register with the Bureau of Internal Revenue, obtain a TIN and have its official invoices approved. Corporate income tax has been 25 percent since the 2021 CREATE law, with a lower rate for small domestic companies.

Supplier payments and payroll

Business peso transfers run through PESONet or InstaPay and the banks’ corporate online platforms. Banks offer payroll services that credit employee accounts directly, as well as collection of SSS, PhilHealth and Pag-IBIG contributions.

Foreign trade and investment registration

Exporters and importers often open FCDU foreign currency accounts. Foreign investments can be registered with the Bangko Sentral, which later eases repatriation of capital and dividends in foreign currency through the banking system.

AMLA checks and know-your-customer interviews

Banks apply the Anti-Money Laundering Act and verify beneficial owners down to individuals. Since the Philippines left the FATF grey list, vigilance remains high for companies with foreign shareholders, online gaming flows and outward transfers.

Opening the company account in a branch

At BDO Unibank, opening a business account usually requires authorised signatories to appear in a branch, or a specific procedure for foreign directors. A corporate relationship officer reviews the SEC file, TIN and business projections before approval.

Accounting duties and annual filing

Philippine companies with a business account in the Philippines file audited financial statements and a General Information Sheet with the SEC every year. The bank may request them during reviews; a foreign parent owning the subsidiary also reports it in its own country.

Documents for a business bank account in the Philippines

The file for a business bank account in the Philippines rests first on the registration documents: SEC certificate of registration, articles, by-laws and the latest General Information Sheet listing directors, officers and beneficial owners. A board resolution naming the signatories is added. Check that names, addresses and ownership percentages are identical in all these documents.

Then add the tax registration with the BIR, with the TIN and approved official invoices, as well as municipal permits. For a company owned by foreigners, also prepare the chart down to individuals, evidence of the source of funds and, if capital was paid in from abroad, proof of its conversion by a Philippine bank.

Depending on the bank, further documents may be requested: business projections, contracts with customers or suppliers, evidence of sector licences. A complete file, with every figure backed by a document, limits back-and-forth, although no institution can promise in advance that the account will be opened.

Questions to ask before opening a corporate bank account in the Philippines

For a Philippine business bank account, first ask the bank how it treats companies owned by foreign shareholders and whether the physical presence of signatories is mandatory. At some institutions, authorised signatories must appear in a branch, while a specific procedure exists for foreign directors. Get the answer before planning a trip.

Next ask about services: peso transfers through PESONet or InstaPay, corporate online banking, payroll and collection of SSS, PhilHealth and Pag-IBIG contributions. For an exporter or importer, ask from when FCDU foreign currency accounts and exchange operations are available, and what fees apply.

Finally, raise follow-up. Philippine banks may request during reviews the audited financial statements and General Information Sheet filed every year with the SEC. Ask how often reviews take place, which documents are usually requested and the conditions for freezing or closing, and keep the answers in writing.

Common mistakes with a Philippine business bank account

The first mistake is to start the application before the company is fully registered. Without an SEC certificate, a TIN and approved invoices, the bank cannot move forward. Another mistake is to underestimate the sectors restricted to foreigners by the Foreign Investment Negative List, or the minimum capital required of a majority foreign-owned company serving the domestic market.

The second mistake is to document poorly the capital coming from abroad. The payment must be properly justified and converted by a Philippine bank, and the SEC often asks for proof of subscribed capital. A badly explained transaction, or an outward transfer with no contract, attracts the attention of teams applying the AMLA law and checking beneficial owners.

The third mistake is to ignore recurring obligations. Annual filing of audited financial statements, updating the General Information Sheet, BIR filings: these items feed the bank's reviews. A foreign parent owning the subsidiary also reports it in its own country, which requires coordination with its advisers.

Local or foreign account: CRS, FATCA and obligations

For a business really carried on in the Philippines, a local account eases payment of suppliers, wages and contributions in pesos. A foreign account may complement the set-up for certain foreign-currency flows, but it does not replace a corporate bank account in the Philippines when the subsidiary operates on the spot. Compare fees, tools and services.

Automatic information exchange, notably CRS and FATCA, leads banks to ask for the tax residence of directors and beneficial owners. Foreign shareholders must check their reporting duties in their own country, particularly for accounts over which they hold signing power. Local tax advice and advice in your home country are both useful.

Before choosing a corporate bank account in the Philippines, compare at least two banks, check their status with the Bangko Sentral and ask for the account terms in writing. This caution is modest compared with the time lost if the account is refused or blocked, and it lets you approach the appointment with a solid file.