How to Open a Business Bank Account in the Philippines

For anyone managing finances for a business in the Philippines, a business bank account is essential. Whether you’re an international business owner or a modest local entrepreneur, having a dedicated business account is necessary to streamline operations, separate personal and business finances, and enable efficient transactions. For businesses that cater to clients on a global level, options like a US dollar bank account or even a virtual US bank account can go a long way to ensure cross-border payments are seamless and cost-effective.

The Philippines is one of the fastest emerging economies in Southeast Asia and offers a wide range of banking options for both local and international businesses. Services like Payoneer, which provide virtual US bank accounts, are also becoming increasingly popular for handling international transactions.

This guide aims to take you through the benefits, requirements, and steps to open a business bank account in the Philippines, and dive deep into both local banking services and global payment solutions.

Why Open a Business Bank Account in the Philippines

Opening a business bank account in the Philippines offers many advantages. For local businesses, it ensures compliance with tax regulations and simplifies day-to-day transactions like payroll and vendor payments. For businesses operating on an international level and working with overseas clients, having a business bank account in the Philippines also paves the way for managing both local and cross-border payments from one source.  

A business bank account additionally provides access to online banking, multi-currency support, and other features like tools for conveniently tracking financial activity. If your business involves international transactions, opening a US dollar bank account can reduce foreign exchange fees and offer closer control over cross-border payments. Alternatively, platforms like Payoneer allow businesses to create a virtual US bank account. This enables them to send and receive payments around the world without needing to have a physical presence in the United States.

Find out more about getting paid in USD.

Types of Business Bank Accounts in the Philippines

The Philippines offers a wide variety of business bank account options tailored to different business needs. Whether you’re focused on local transactions or frequently deal in international trade, selecting the right type of account is essential to managing your business finances efficiently.

Let’s run through three broad popular types of business bank accounts: 

1. Local business bank accounts: Ideal for businesses operating solely with partners and clients inside the Philippines. Owners of accounts like these benefit from features like Peso-denominated accounts, low-cost local fund transfers, and simple bill payment options, making them ideal for business-as-usual operations.
2. US Dollar bank accounts: For businesses dealing with regular international payments, US dollar bank accounts are a practical solution. They allow you to hold and transact in USD, minimizing currency conversion fees and streamlining cross-border transactions. Read this article for more information on how to open a US bank account when you’re outside the USA. 
3. Virtual US bank accounts: For companies engaging with global clients, payment platforms like Payoneer provide  virtual US bank accounts. With accounts like these businesses can receive payments from customers wherever they are in the world, and they won’t need a local US bank account. This is especially beneficial for freelancers, e-commerce entrepreneurs, and export companies in the Philippines.

Requirements to Open a Business Bank Account in the Philippines

Opening a business bank account in the Philippines requires a set of documents to comply with the country’s banking regulations. Whether you’re a local entrepreneur or an international investor, here’s what you usually need:

• Business Registration Documents: These include the Certificate of Registration with the Department of Trade and Industry (DTI) if you’re a sole proprietor or the Securities and Exchange Commission (SEC) for corporations and partnerships.
• Tax Identification Number (TIN): This is a standard requirement for tax compliance as with most countries. It links your account with local regulatory systems.
• Proof of Your Business Location: This would be the typical proof of address such as a utility bill or lease agreement.
• Valid ID: A government-issued identification, such as a passport or driver’s license, is required to verify your identity. It should not be expired or close to expiring. 
• Board Resolution: If your business is a corporation, a board resolution authorizing the opening of the account may be needed.

Depending on how international your businesses is, where its headquarters are for example, you may need additional documentation such as a certificate of authority to operate in the Philippines or the appointment of a local representative.

If your business also requires a virtual US bank account for international payments, Payoneer simplifies the process by enabling you to open an account online without the hassle of local regulations. 

How to Open a Business Bank Account in the Philippines

Opening a business bank account in the Philippines is a straightforward process if you follow the steps and carefully prepare the documents in advance. 

Here’s a short step-by-step guide:

1. Research and Choose a Bank: Start by identifying banks that offer features suited to your business needs, such as whether the bank supports a US dollar bank account or services for international transactions. Some top options in the Philippines include BDO, BPI, and Metrobank for local banking and HSBC or Citibank for international bank account options.
2. Gather the Right Documentation: Prepare the documents discussed in the previous section.
3. Visit the Bank or Apply Online: Some banks require you to visit a branch, while others allow you to be onboarded online. If your business requires global flexibility, consider platforms like Payoneer, given all of the solutions available for streamlined cross-border payments and invoices.
4. Activate International Features: Once your account is open, ensure all features at your disposal, like multi-currency support, are switched on and set up to facilitate transactions with global clients and partners.

Best Banks for Business Bank Accounts in the Philippines

The Philippines has a variety of banks offering services tailored for business needs, including local and international payment solutions. Payoneer is the optimal alternative to traditional banks, for those looking for a free US bank account option without the extra step of jumping through local hoops. This is especially useful for businesses handling frequent international payments, such as freelancers and e-commerce vendors.

In terms of traditional banks in the Philippines, here are some of the best options:

1. BDO Unibank: Known for its extensive branch network and reliable business banking services, BDO offers flexible account options for small businesses, including Peso and US Dollar accounts.
2. Bank of the Philippine Islands (BPI): BPI provides online banking platforms and boasts competitive fees, making it ideal for local businesses seeking reliable fund management.
3. Metrobank: This bank offers affordable services for businesses that need a hybrid of both local and international bank account options. It also includes access to multi-currency accounts.
4. HSBC: For companies engaged in significant international trade, HSBC delivers dependable cross-border transaction support and US Dollar bank accounts.

Key Considerations When Choosing a Business Bank Account in the Philippines

Choosing the best business bank account in the Philippines means aligning your business needs with the respective account features. As stated earlier, for businesses dealing with international clients, it’s advisable to look for options that support multi-currency transactions or offer a US Dollar bank account. Platforms like Payoneer provide additional flexibility with a virtual US bank account, which is particularly useful for small businesses and freelancers handling global payments.

When looking at different banks, consider the following:

• Transaction Fees and Minimum Balances: Ensure the fees are reasonable in terms of your budget and align with your expectations. Some banks even offer fee waivers for maintaining a minimum balance.
• Online and Mobile Banking: Given the digital age we are in, it’s advisable to opt for accounts with robust digital platforms, enabling you to manage funds and make payments on-the-go.
• International Banking Features: If you work with international clients on a regular basis, prioritize accounts that support cross-border transactions and foreign currency holdings without too many obstacles. 
• Customer Support: This is often overlooked, but access to responsive customer service can save a lot of time and energy, and it can prevent delays.

In the end, the best business bank account strikes the perfect balance between accessibility and affordability as well as supporting features that meet your financial KPIs, be they local, global or both.

Frequently Asked Questions ( FAQ)

1. Can a foreign-owned business open a bank account in the Philippines?

Yes, but you will need to provide additional documentation. If the ownership of the business sits outside the Philippines, you would most likely need to include a Certificate of Authority to Operate from the SEC and proof of a local representative or authorized signatory. This would be in addition to the standard documents required.

Some banks, like HSBC and Citibank, specialize in providing tailored banking services for foreign businesses.

2. What types of business bank accounts are available in the Philippines?

Philippine banks offer various business account types. Three of the most popular ones include:

• Current or Checking Accounts: Ideal for daily business transactions, offering automated fund transfers and seamless integration with payroll management tools .
• Savings Accounts: Suitable for minimal withdrawal needs and accumulating interest, allowing the business to earn a return on funds not immediately needed for operations.
• Multi-Currency Accounts: Perfect for businesses managing international transactions, allowing funds to be held in currencies like USD or EUR.

3. Are there alternatives to opening a business bank account in the Philippines for receiving payments?

Yes, platforms like Payoneer provide an alternative if you find the process of opening a business bank account in the Philippines too cumbersome. With Payoneer’s Global Payment Service your businesses could accept international payments, and you wouldn’t need a local bank account to do so. 

Payoneer allows businesses to receive payments in multiple currencies through virtual bank accounts in the U.S., Europe, and Asia, without the need for a physical presence in those regions. Funds received can be transferred to a local Philippine bank account or withdrawn in cash. Payoneer also offers competitive exchange rates and lower fees compared to traditional banks, making it ideal for businesses with international clients.

4. Do Philippine banks offer multi-currency business accounts?

Yes, major banks like BDO, HSBC, and Citibank offer multi-currency business accounts. These accounts allow businesses to hold and transact in various currencies, such as USD, EUR, and JPY. Multi-currency accounts are particularly beneficial for companies dealing with overseas clients or suppliers, as they minimize conversion fees and simplify cross-border transactions.

5. How to open a US bank account overseas?

If you are looking to conduct business with clients or partners in the US, you will need a convenient way to receive money from your buyers, and to pay for goods or services that you may buy in the US. As an individual or a small company located outside the US, the traditional solution is to establish a business checking account in a US bank.

Visit this link to continue reading on what that entails. 

6. What are the advantages of using Payoneer over a traditional bank account in the Philippines?

Payoneer offers a number of advantages:

• Lower Fees: Reduced charges for multinational payments and currency conversions.
• Easy Setup: As opposed to traditional banks that are hindered by bureaucratic processes, registration with Payoneer is simple and without the paperwork.
• Flexibility: Supports multiple currencies, allowing businesses to streamline transactions on a global scale.

Convenience: By integrating with platforms like Amazon, Upwork, and Fiverr, Payoneer caters to a whole host of small businesses and freelancers, providing a streamlined, cost-effective solution compared to traditional banking.