A corporate bank account is an important tool for businesses to manage their finances, pay employees and suppliers, and receive payments from customers. It also helps to establish credibility and professionalism.
The process of opening a corporate bank account can be intimidating, but it is essential to have one to manage the business effectively. This guide provides a step-by-step overview of the account opening process and offers tips on how to maintain the account properly.
The purpose of this guide is to help business owners understand the requirements and process of opening a corporate bank account and to provide advice on how to maintain the account in good standing.
Preparing for Account Opening
Businesses need to choose the right type of account based on their needs. A checking account is ideal for managing day-to-day transactions, while a savings account is suitable for storing cash reserves. Other types of accounts include merchant services accounts for accepting credit card payments or loans for financing business operations.
Before applying for a corporate bank account, gather all the necessary documents. These may include:
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Proposed Articles of Incorporation - This document outlines the business's purpose, structure, and ownership.
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Proposed By-Laws - This document specifies how the business will be governed and the rights and responsibilities of shareholders and directors.
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Treasurer in Trust IDs - These are identification cards that prove the treasurer's identity.
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Treasurer in Trust Affidavit - This document attests that the treasurer will use the funds in the bank account solely for the business's benefit.
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Bank Account Forms such as specimen signature cards - These forms collect information about the business, including its legal name, address, and authorized signatories.
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Choose a bank - Research and compare banks to find the one that meets the business's needs. Consider factors such as fees, interest rates, services offered, and reputation.
Submitting Requirements
Submit requirements to the Securities and Exchange Commission (SEC) - For corporations, the SEC requires the submission of the Articles of Incorporation and By-Laws. The business needs to register with the SEC to obtain its SEC registration number.
Submit requirements to the chosen bank - Once the necessary documents are complete, submit them to the chosen bank. The bank will review the documents and request additional information, if necessary.
Wait for confirmation and account activation - The bank will review the documents and confirm if the account has been approved. Once approved, the bank will issue a welcome kit containing the account number, terms and conditions, and other relevant information.
Account Activation
Visit the bank to activate the account - Once the account is approved, visit the bank to activate it. Bring a valid ID and other documents that the bank may require, such as a business permit or business registration.
Submit additional requirements, if any - The bank may require additional documents or information, such as identification cards, to activate the account.
Set up online banking, if available - The bank may offer online banking services. If available, set up online banking to manage the account more efficiently. Online banking allows businesses to access their accounts and manage their finances from anywhere at any time.
Maintaining the Account
Maintain the minimum balance - The bank may require a minimum balance to keep the account open. Make sure to keep the account's minimum balance to avoid penalties or account closure.
Keep track of transactions and bank statements - Regularly monitor the account and keep track of transactions and bank statements to avoid errors or fraudulent activities. Review bank statements promptly and report any discrepancies to the bank immediately.
Update account information, if necessary - If there are any changes to the business's information, such as a change in address or authorized signatories, notify the bank promptly to update the account information.
Conclusion
In conclusion, opening a corporate bank account in the Philippines is easy and straightforward. All you need to do is provide the necessary documents, choose the right bank and make sure you follow all their regulations and open the account! With that done, you'll be well on your way to taking advantage of all the benefits that come with having a corporate bank account.
