How to Register a Back Office Company in the Philippines

A back office is a part of a company that handles internal functions and doesn’t involve interacting with your customers. These often include finance, human resources, IT support, customer service, and other administrative tasks. 

Because these roles are not client-facing, many companies set up back-offices overseas to reduce their operating expenses. Among these overseas locations for back offices, The Philippines is perhaps the most preferred option due to its skilled workforce and lower costs.

If you are planning to move your back office operations to the Philippines, this article will walk you through the essentials such as legal requirements to the establishment process. 

Legal Framework for Starting a Back Office Company in the Philippines

Under the Corporation Code of the Philippines (Batas Pambansa Blg. 68), your back office needs to be registered with the SEC. That means you need to establish an appropriate legal entity in the Philippines before you can move your back office operations here. 

As a foreign company, you can either establish a corporation or a representative office depending on whether you want to have a separate legal entity or keep operations connected. Registration grants your company legal status as a corporate entity in the Philippines.

If you are a foreign or local individual who wants to set up a company to offer back office services to other clients, it is advisable to register a domestic corporation with foreign or local ownership.

For more information, you can talk to our business incorporation experts who will advise you on the most appropriate entity and other requirements.

How to Register a Back Office Company in the Philippines

Step 1: Submit an Application to the SEC

After choosing a business entity for your back office company in the Philippines, you need to prepare all the required documentation for registration. These documents include:

• Name Reservation and payment form to confirm your chosen corporate name.
• Notarized Articles of Incorporation
• Notarized By-laws that govern the internal management of your back office company.
• Treasurer’s Affidavit as a declaration regarding the initial capital contribution.
• Bank Certificate of Deposit as proof of capital deposit in a local bank account.
• SEC Form F-100 if foreign equity exceeds 40%.

You will need to submit all the requirements to your local SEC office or through the eSPARC online portal. Upon approval, you will receive a Certificate of Incorporation, which legitimizes your business.

Step 2: Acquire Necessary Permits and Licenses for Back Office Operations

With a Certificate of Incorporation, you can acquire all the necessary permits and licenses from LGUs or relevant government agencies. This includes the following: 

• Barangay Clearance 
• Mayor’s Permit (Business Permit) 
• Zoning clearance
• Fire Safety Inspection Certificate
• Sanitary Permit
• Community Tax Certificate (Cedula)

You should also register your back office with the Bureau of Internal Revenue (BIR) online or at your local Revenue District Office (RDO) or via the NewBizReg online portal. After registration, you will receive a Tax Identification Number (TIN) and a Certificate of Registration (COR). These will allow you to file your company’s tax obligations and issue official receipts and invoices. 

Emerhub can assist in the registration process with SEC, and BIR by managing all necessary documentation, ensuring that businesses meet local regulations efficiently. We can help you obtain all the required permits from LGUs so you can adhere to the legal requirements for back-office companies.

Step 3: Open a Corporate Bank Account

Opening a business bank account in the Philippines allows you to separate your personal and finances for your back office company. When opening a business bank account, it’s essential to evaluate factors such as fees, available services, and the types of accounts that best suit your business requirements.

Submit your application along with all required documents such as an application form, SEC Registration Certificate, By-Laws, valid government IDs, and TIN. Some banks may offer online application options, but physical presence is often preferred.

Processing time for opening a business account in the Philippines ranges from 5 to 10 business days. Once approved, you will receive your account details, allowing you to manage your business finances effectively.

Steps 4: Hiring and Employee Benefit Registration

Once you’ve hired staff for your back office company, you are obligated to contribute to various employee benefit programs based on their salaries. This involves registering your back office staff to relevant agencies such as the following:

• Bureau of Internal Revenue (BIR)
• Security System (SSS)
• Philippine Health Insurance Corporation (PhilHealth)
• Home Development Mutual Fund (Pag-IBIG). 

These benefits are crucial as they ensure compliance with Philippine labor laws and provide your employees with essential benefits, including social security, healthcare, and housing finance. 

The entire company setup process in the Philippines can take anywhere from 4 to 8 weeks or more depending on the planned business operations and completeness of your application.

Our local experts will prepare the necessary documents and handle the entire company registration process on your behalf to ensure timely approvals.

Employer of Record as an Alternative to Setting Up a Back Office Company in the Philippines

If you are in the process of setting up a company for your back office but need to hire employees quickly, or if you want to test the waters before doing so, using an employer of record could be a suitable option.

An Employer of Record (EOR) is a third-party organization that legally employs individuals on behalf of another company. This allows businesses to hire employees without establishing a legal entity in the employee’s location, simplifying compliance with local laws. 

This approach allows you to quickly hire employees without setting up a local entity. The EOR will take on full legal responsibility and manage payroll, benefits administration, and compliance on your behalf.

Once your legal entity is registered and you have all the relevant permits and licenses, you can move employees from EOR to your company. 

You can discuss your needs and plans with our experts by filling out the form below. We will advise you on the most suitable option according to your goals and handle the process in your stead.