How to Obtain an Employer Registration Number (ERN) for a New Business

Registering a new business in the Philippines involves several legal requirements, one of which is obtaining an Employer Registration Number (ERN). This number is essential for compliance with labor laws and social welfare programs such as the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG). Failure to register may result in penalties and legal consequences. This guide outlines the step-by-step process to obtain an ERN for your business.

Step 1: Determine Your Business Structure

Before applying for an ERN, ensure that your business is registered with the appropriate agencies:

• Sole Proprietorship – Register with the Department of Trade and Industry (DTI).

• Partnership or Corporation – Register with the Securities and Exchange Commission (SEC).

• Cooperative – Register with the Cooperative Development Authority (CDA).

Additionally, secure a Taxpayer Identification Number (TIN) and Certificate of Registration (BIR Form 2303) from the Bureau of Internal Revenue (BIR).

Step 2: Register with the Social Security System (SSS)

Employers must register with the SSS to facilitate social security contributions for employees.

SSS Registration Process:

1. Fill out SSS Form R-1 (Employer Registration Form).

2. Submit a copy of the DTI/SEC/CDA Certificate of Registration.

3. Provide a BIR Certificate of Registration (Form 2303).

4. Submit a Mayor’s/Business Permit or Barangay Clearance.

5. For corporations, submit the Articles of Incorporation and By-Laws.

6. Pay the required employer contribution at an SSS-accredited bank.

7. Receive the SSS Employer Registration Number (ERN) upon approval.

Step 3: Register with the Philippine Health Insurance Corporation (PhilHealth)

Employers are required to register with PhilHealth to provide health insurance coverage for their employees.

PhilHealth Registration Process:

1. Fill out PhilHealth Form ER1 (Employer Data Record).

2. Submit a copy of the DTI/SEC/CDA Certificate of Registration.

3. Provide the BIR Certificate of Registration (Form 2303).

4. Submit the SSS Employer Registration Number (ERN).

5. Once processed, receive the PhilHealth Employer Number (PEN).

Step 4: Register with the Home Development Mutual Fund (Pag-IBIG)

Pag-IBIG registration ensures that employees can avail of housing loan benefits.

Pag-IBIG Registration Process:

1. Fill out Employer Registration Form (ERF).

2. Submit the DTI/SEC/CDA Certificate of Registration.

3. Provide the BIR Certificate of Registration (Form 2303).

4. Submit a copy of the SSS Employer Registration Number (ERN).

5. Once registered, obtain the Pag-IBIG Employer ID Number.

Step 5: Comply with Post-Registration Obligations

Once the business obtains its Employer Registration Number (ERN) and other required employer numbers, the following obligations must be met:

• Regularly remit employer and employee contributions to SSS, PhilHealth, and Pag-IBIG.

• Submit monthly reports of employee contributions.

• Keep payroll records and proof of payments for compliance audits.

• Report newly hired employees within 30 days of hiring.

Conclusion

Obtaining an Employer Registration Number (ERN) is a crucial step in complying with labor and social welfare laws in the Philippines. Proper registration ensures that employees receive the benefits mandated by law while avoiding penalties for non-compliance. Business owners should consult with a corporate lawyer or HR consultant to ensure smooth registration and adherence to labor regulations.

Navigating the business landscape in the Philippines can be both rewarding and intricate. Whether you’re embarking on a new venture or scaling up, ensuring that your corporate endeavors are in line with local regulations is paramount.

At CBOS Business Solutions Inc., we pride ourselves on simplifying these processes for our clients. As a seasoned professional services company, we offer comprehensive assistance with SEC Registration, Visa processing, and a myriad of other essential business requirements. Our team of experts is dedicated to ensuring that your business is compliant, well-established, and ready to thrive in the Philippine market.

Why venture into the complexities of business registration and compliance alone? Allow our team to guide you every step of the way. After all, your success is our commitment.

Get in touch today and let us be your partner in achieving your business goals in the Philippines.

Email Address: gerald.bernardo@cbos.com.ph

Mobile No.: +639270032851

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