Why open a business bank account in the Philippines?
Opening a bank account for a business can provide numerous benefits for your company. Here are some reasons to open a business bank account in the Philippines:
- Better financial management: When you open a business bank account in the Philippines, taxation and accounting procedures are easier to follow. This simplifies tracking expenses, making larger payments, and monitoring cash flow.
- Access to specialist services: Business banking provides specialized services that facilitate the acceptance of various payment methods, automate payment processes, and handle payables and receivables effectively.
- Credit facilities and financing options: Business bank accounts in the Philippines provide loans to Small and Medium-sized Enterprises (SMEs) and credit lines for various business requirements. A solid credit history and a strong relationship with your bank will increase your chances of receiving favorable loan terms and higher credit limits.
- Risk reduction and security: Multi-factor authentication, encrypted transactions, and customized notifications for unauthorized access and suspicious activity are just a few of the strong security features that business banking solutions provide to protect against fraud.
- Streamlined employee transaction management: Business accounts offer employees programmable debit or credit cards, payroll account services, and electronic payment options for handling wages and government benefits.
What are the types of business banking accounts in the Philippines?
Business banking accounts are an essential part of any company’s financial management. They allow businesses to process financial transactions, manage expenses, and securely open a bank account in the Philippines for business so that they can set aside the necessary funds for future growth and expansion. Below are the seven types of business bank accounts in the Philippines:
- Checking account: Businesses can issue post dated checks, pay suppliers and bills, deposit and withdraw huge sums, and handle daily financial tasks like payroll.
- Savings account: Businesses can save money for emergencies and future goals, which gives them a solid liquidity position for flexibility and growth.
- Corporate credit card: Offers special benefits through credit card points for companies who want to open a business bank account in the Philippines. It provides fast access to cash, high credit limits, low-interest rates, and business-friendly features.
- Merchant accounts: By automatically depositing consumer payments into designated savings or checking accounts, businesses can accept electronic payments for their online stores through a payment gateway, saving them time and effort.
- Certificate of Deposit (CD) accounts: Businesses who want to open a business bank account in the Philippines earn higher interest rates but have limited access to money for a specific CD term. These are a viable substitute for standard savings accounts.
- Money market account: An interest-bearing savings and checking account comes with check-writing, debit cards, and a greater interest rate than a regular savings account.
- Foreign currency account: Accounts that enable holding funds in multiple currencies but have high minimum deposit requirements and related fees, which are crucial for companies that engage in international transactions.
What are the requirements for opening a bank account in the Philippines?
Business owners looking to open a business bank account in the Philippines have several requirements that must be fulfilled. These requirements may vary depending on the bank and local laws. Here are the requirements for opening a bank account in the Philippines:
- Brand and company certifications: Provide a “doing business as” certificate if your company’s registered and branded names differ.
- Credit score information: Include the credit score if your company already has one, or provide the business owner’s credit score if opening an account for the first time.
- Business registration documentation: Submit documents such as a tax certificate, registration document, and proof of office space purchase to prove your business entity’s registration.
- Licensing information: If your business requires specific licenses, provide them when you open a business bank account in the Philippines.
- Ownership and partnership agreements: Submit legal paperwork and identification for each partner if your business involves partnerships or entities with controlling shares.
- Personal identification: To open a business bank account in the Philippines, provide a valid government-issued identification (not expired) for the business owner and treasurer-in-trust/authorized signatory.
- Employer information: Submit the company’s Treasurer’s Affidavit (notarized) and a copy of the Proposed Articles of Incorporation and By-Laws.
How to open a business bank account in the Philippines in 7 steps
Opening a business bank account is crucial for any company, whether you are just starting or expanding your operations in the Philippines. A dedicated corporate bank account lets you separate your personal and business finances, track your cash flow, and facilitate financial transactions. Here are seven steps on how to open a business bank account in the Philippines:
Step 1: Research the available options
Before deciding on a bank, it is important to conduct thorough research. Take a close look at all the available offers, benefits, and costs offered by different banks. Consider your current business status and future expansion plans. This research will help you make an informed decision when choosing a bank.
Step 2: Choose a preferred bank
Once you have researched, select the bank you want to open an account with. Take the time to explore all the options available from the bank. Conversing with a bank representative to understand their account features and services is also beneficial.
Step 3: Select the account type
Decide whether you need a business checking account, savings account, or both. Consider the interest rates and fees associated with each account type. Choose the account that aligns with your business needs and financial goals.
Step 4: Gather the required documents
Specific paperwork is required to open a business bank account in the Philippines. Having them together in advance can help avoid delays or surprises throughout the application process. Most of the time, notarization is required for these papers. Be ready for the possibility that certain banks will additionally need directors and holders of power of attorney to be there in person.
Step 5: Complete the application form
Complete the account application thoroughly and accurately. Provide as much information as possible and be specific. Inputting accurate data will help expedite the processing of your application.
Step 6: Make an initial deposit
Most banks require a nominal deposit to open a business account. Ensure you gather the needed funds and write a check that meets the deposit requirements. The typical deposit amount for local banks in the Philippines is ₱ 100,000 ($1,785), but some banks catering to SMEs may ask for a lower amount, like ₱ 40,000 ($714) to ₱ 50,000 ($893). Choose the bank and deposit amount that best suits your needs.
Step 7: Activate your bank account
The process is complete once you receive confirmation that your account has been opened. Take the time to familiarize yourself with the banking services available, both online and offline. Once your account is active, you can use it for business transactions.
What are popular banks in the Philippines for business banking?
As a business owner in the Philippines, having a trustworthy and efficient banking partner is essential. Your company’s success can be greatly impacted by having a bank that knows your business needs and can offer customized services. Here are the five popular banks in the Philippines for business banking:
1. Bank of the Philippine Islands (BPI)
As one of the oldest banks in the Philippines with a history dating back to 1851, BPI is known for its wide range of financial products and services catering to businesses of all sizes. BPI offers loans, credit cards, and business savings accounts. Key features that make BPI an excellent choice for business owners looking to open a business bank account in the Philippines include strong online and mobile banking capabilities and customer support. Moreover, BPI’s dedicated corporate banking division provides specialized services for larger businesses.
2. Metrobank
With a strong reputation for reliability and innovation since its establishment in 1962, Metrobank is another top choice for business owners looking to open a business bank account in the Philippines. Its online and mobile banking capabilities, competitive interest rates, and fees attract businesses seeking reliable banking services. Metrobank also offers specialized services such as cash management and foreign exchange solutions.
3. Land Bank of the Philippines
While primarily focused on providing financial services to farmers, fishers, and rural entrepreneurs, the Land Bank of the Philippines also offers products and services tailored to the needs of Small and Medium-sized Enterprises (SMEs). Its low interest rates and fees for small business banking and its commitment to supporting local businesses and communities make it a great choice for SMEs seeking financial assistance.
4. Security Bank
Security Bank has quickly gained a reputation as one of the most trusted banks in the country, known for its personalized service and innovative solutions. Business owners value Security Bank’s strong online and mobile banking capabilities, competitive interest rates, and fees. Additionally, Security Bank offers specialized services like cash management and payroll solutions.
5. Development Bank of the Philippines (DBP)
Development Bank of the Philippines (DBP) is a government-owned bank promoting economic growth and development. DBP offers financial products and services specifically designed to support Small and Medium-sized Enterprises (SMEs). DBP provides loans, credit lines, and other financing solutions for small business banking. Key features that make DBP a popular choice for SMEs looking to open a business bank account in the Philippines include competitive interest rates, fees, and a commitment to sustainable development and social responsibility.
What are online business banking options in the Philippines?
The digital age has revolutionized the traditional way of doing business, making it easier to open a business bank account in the Philippines. Online business banking options have emerged to cater to the needs of entrepreneurs and small businesses. Here are some of the best online banks in the Philippines:
1. BPI Bizlink
BPI Bizlink is an online portal by the Bank of the Philippine Islands (BPI) designed to help business owners manage multiple BPI business accounts and transactions in one place. Using the app or web version of Bizlink, you can open a business bank account in the Philippines and approve business transactions for multiple accounts.
BPI Bizlink comes in two bundles when you open a business account online: Bizlink BPI Digital Access, which has no Average Daily Balance (ADB) requirement, and Bizlink BPI Core, which requires ₱ 100,000 ($1,785) in ADB for all enrolled accounts but has additional features such as government payments.
2. Security Bank Digibanker
Security Bank’s Digibanker is another online business banking portal that helps business owners manage cash flows, payments, and business transactions. Security Bank Digibanker’s services include receivables management, vendor payments, eGov payments, liquidity management, and fund transfers.
With Security Bank Digibanker, business owners can open a business bank account in the Philippines on the Security Bank website and forward hard copies of their documents to the bank for verification.
3. Unionbank Hub
Unionbank MSME Business Banking Hub, or Unionbank Hub, is an online platform tailor-made for Micro, Small, and Medium Enterprises (MSMEs). Like the other portals, Unionbank Hub has a web and app version designed to help you manage your account transactions.
To access Unionbank Hub, you’ll need to open a business checking account first that comes in two types: Business Starter and Business Check, with ₱ 5,000 ($89.25) and ₱ 100,000 ($1,785) in initial deposit requirements, respectively. Like Security Bank Digibanker, you can complete your application online by visiting their website.
4. BDO Business Online Banking
BDO Business Online Banking is an online user portal for BDO Cash Management Services (BDO CMS) that offers a full suite of solutions to help business account holders manage their cash and liquidity. As part of BDO CMS, BDO Business Online Banking provides online collection, payment, and information services.
To sign up for BDO CMS, visit a BDO branch or talk to a BDO SME Business Development representative. Small Business Package and Manpower and Personnel Management Business Package include BDO Business Online Banking.
5. Wise
Wise, known as TransferWise, was founded in 2011 and offers international money transfers and multi-currency accounts with actual exchange rates. Wise has become a popular choice for foreigners and global businesses. You can hold over 40 currencies in your Wise bank account, including Philippine pesos. Many companies consider Wise the best bank to open US dollar and Philippine peso business bank accounts in the Philippines.
Individuals and companies can open a bank account at Wise in less than ten minutes and start using their account directly. You can request a Wise debit card for any ATM in the Philippines without paying extra fees or high exchange rates.
Frequently Asked Questions (FAQs)
What is the easiest bank to open a checking account in the Philippines?
Security Bank All Access Checking Account is often considered one of the easiest banks to open a checking account in the Philippines.
What are the types of bank accounts in the Philippines?
The common types of bank accounts in the Philippines include checking accounts, savings accounts, corporate credit cards, merchant accounts, Certificate of Deposit (CD) accounts, money market accounts, and foreign currency accounts.
Can I open a bank account in the Philippines while abroad?
No, as a US citizen, it is usually impossible to open a bank account abroad in the Philippines due to documentation requirements. Typically, you would need to be a resident of the country to open a business bank account in the Philippines.
How to get a loan for a business in the Philippines?
To get a loan for a business loan in the Philippines, begin by researching different lenders, including banks and online platforms. Prepare required documents such as a business plan, financial statements, and valid identification. Submit your application either online or in-person and await approval. Compare loan terms and interest rates to find the best option for your business needs.
What is the minimum amount to open a business bank account in the Philippines?
The minimum amount to open a business bank account in the Philippines is typically ₱ 100,000 ($1,785) for most local banks. However, some banks catering to small and medium-sized enterprises (SMEs) might have lower requirements, ranging from ₱ 40,000 ($714) to ₱ 50,000 ($893).
