Procedures after setting up a company in the Philippines

After the company is established, the company in the Philippines also needs to carry out a number of post-establishment tasks such as opening bank accounts, registering for social insurance, health insurance for employees. Viet An Law would like to guide you through the preliminary procedures after establishing a company in the Philippines through the article below.

Procedures for opening a bank account after setting up a company in the Philippines

Opening a bank account after company formation in the Philippines is an important step to manage finances and execute business transactions. The Philippines has many commercial banks, both domestic and international. Some popular banks include:

• BDO Unibank: The largest bank in the Philippines in terms of total assets.
• Banco de Oro (BDO): One of the leading banks with an extensive branch network.
• Metrobank: One of the largest and oldest banks.
• Bank of the Philippine Islands (BPI): The oldest bank in the Philippines.
• Security Bank: The bank is known for its good customer service.

List of documents required to open a bank account

The documents required to open a business bank account in the Philippines can vary from bank to bank, but generally include:

• Certificate of Registration from the SEC or DTI: This is a document that proves that the company is legally registered.
• Articles of Incorporation and By-Laws.
• Company Taxpayer Identification Number (TIN): Issued by the Bureau of Internal Revenue (BIR).
• Mayor’s/Business Permit: A business license issued by the local government.
• Identification document of the company representative (passport or identity card).
• Board Resolution authorizing the account opener: An official document of the company authorizing a specific individual to be allowed to open and manage a bank account.

Procedures for applying for social insurance after setting up a company in the Philippines

The Social Security System (SSS) is a social insurance program administered by the Philippine government that provides benefits to workers working in the private sector, self-employed workers, and overseas Filipino workers (OFWs). SSS is similar to Social Insurance in Vietnam, which aims to protect workers from economic and social risks.

The main types of SSS benefits

• Sickness Benefit: A partial income subsidy for workers who are sick and unable to work for a period of time.
• Maternity Benefit: Allowance for pregnant women and childbirth.
• Disability Benefit: An allowance for an employee who is disabled due to an accident or illness.
• Retirement Benefit: A monthly pension benefit for employees who have reached retirement age and meet the conditions for contribution.
• Death Benefit: An allowance for relatives of deceased employees.
• Funeral Benefit: Support funeral expenses for deceased employees.
• Unemployment Benefit: Temporary benefit for workers who have lost their jobs (introduced in 2019).
• Loans: SSS also provides loans to members, such as housing loans, education loans, and emergency loans.

How to sign up for SSS

Employees can apply for SSS online through the official SSS website or at the nearest SSS branches.

SSS Contribution

Both the employee and the employer must contribute to the SSS. The contribution level is calculated based on the employee’s salary.

Procedures for applying for health insurance after establishing a company in the Philippines

Applying for health insurance for employees after setting up a company in the Philippines is an essential step, usually done through the Philippine Health Insurance Corporation (PhilHealth). PhilHealth (Philippine Health Insurance Corporation) is a Philippine government-owned and controlled corporation, established in 1995 with the goal of providing universal health insurance to Filipinos. It is an important part of the country’s healthcare system, which aims to ensure that people have access to quality and affordable health services, while protecting them from the financial risks posed by medical costs.

Employees can sign up for PhilHealth in two forms: direct contributors or through the company. Usually, registering through the company is preferred because it simplifies salary deductions and remittances.

Application Process

• Collect employee information: The company needs to collect personal information of employees, including: Full name; Birthday; Address; Phone number; Social Security Number (SSS Number) (if any); Dependent information (if any)
• Fill out the PhilHealth registration form: The application form can be downloaded from the official PhilHealth website via the following link: https://www.philhealth.gov.ph/
• Submit: Applications are usually submitted at the PhilHealth office or via the online system (if applicable). The company can assist employees in this process.
• Receive a PhilHealth Number (PIN): Upon completion of the registration, the employee will be given a PIN to use the medical services covered by PhilHealth.