Record & Document Keeping for Companies in the Philippines

Record Management is often overlooked in an organization. Usually handled by Human Resources (HR) or the Finance department, they ensure that all information and documents of a company are up to date, accurate, and compliant to all laws and regulations of the Philippines.

Below are some of the most common records that a company must regularly manage, classify, coordinate, and update:

• Employee 201 file (Personal Employment Record)

Companies that fail to organize and manage their employee’s 201 files are at risk of mixing employee performance evaluations, grievance forms, clearance forms, job titles, department heads, etc.

• BIR/ITR Filing and Payment

It is the role of employers to annually submit the income tax returns of all their employees. They must also keep good updated records of all tax payments. Failure to file tax returns, supply accurate information, or attempt to evade tax payments will incur financial penalties, litigation, and imprisonment.

• DTI Regulatory Compliance

An individual may choose to operate a business as the sole beneficial owner of the business, with partners, or as a corporation. To operate a business, potential businessmen and company owners must register their business with the local government and renew the business license every year. A corresponding penalty is charged for late renewals. Companies unable to comply with the rules and regulations of the DTI and the laws of the Philippines will face administrative proceedings.

• SEC Compliance

The Securities and Exchange Commission (SEC) requires stock corporations with an amount of paid capital, (including branches of foreign corporations) to file a report from an independent certified public accountant (CPA) on their financial statements. Deadlines are also set annually as to when projected financial statements are to be completed and filed.

By law, companies must submit and keep a record of their General Information Sheet (GIS), affidavit of non-holding of annual meeting (ANHM), Affidavit of non-operation (ANO), Financial Statements (FS), Stock and Transfer Book (STB), or Membership Book (MB).

Failure to comply and organize these documents inevitably costs the company time, money, and brand equity.