What is a BSRD?

A BSRD (formally knowns as a Bangko Sentral Registration Document) is a document issued by the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines. It serves as official recognition that a foreign investor has brought foreign currency into the country for investment purposes—usually in the form of paid-up capital in a newly incorporated Philippine company.

If a foreign investor (whether a person or a company) incorporates a Philippine company and remits USD 200,000 as paid-up capital, the receiving Philippine bank can then issue a Certificate of Inward Remittance (CIR) evidencing the inward remittance of the paid-up capital. The foreign investor then uses the CIR to apply for a BSRD from the BSP. The BSRD formally registers that inward foreign currency as a foreign investment.

Why is a BSRD Important?

Although obtaining a BSRD is not legally mandatory, it becomes practically necessary in these scenarios when buying foreign currency from a Philippine bank:

• Repatriating Capital: If the investor wants to bring their original capital back to their home country, they will need to convert Philippine Pesos (PHP)—which the local company earns—back into foreign currency (typically USD). Banks require the BSRD to validate this conversion.
• Remitting Dividends: When the Philippine company declares dividends and wants to remit them to foreign shareholders, the same currency conversion is needed, and again, the BSRD is required by the bank.
• Foreign Exchange Compliance: Philippine banks will not sell foreign currency for investment-related conversions unless the company can show the BSRD.

Without the BSRD, investors may still repatriate funds but must explore more complicated or less convenient routes, such as sourcing foreign currency through non-bank channels.

How to Apply for a BSRD

Applying for a BSRD involves several steps, primarily coordinated with the foreign exchange department of the BSP and the receiving Philippine bank. Here are the step-by-step overview:

Step 1: Inward Remittance and CIR
Once the foreign investor sends money to the Philippines for investment, the recipient bank will issue a Certificate of Inward Remittance (CIR). This confirms the money came from abroad and is tagged as investment capital.

Step 2: Prepare the Application Package
You will need to prepare and submit the following to the BSP:

• CIR from the receiving bank
• Proof of incorporation of the Philippine company (SEC registration, Articles of Incorporation)
• General Information Sheet (GIS) showing shareholder structure
• Bank endorsement letter
• Duly accomplished BSRD Application Form

The application form can be obtained directly from the BSP or the BSP’s website. You may check https://www.bsp.gov.ph under the Foreign Exchange Regulations section or consult your legal counsel or banking relationship manager for updated versions.

Step 3: Submit to BSP
The completed package is submitted to the BSP for processing. If the documents are in order, the BSP will issue the BSRD confirming the registration of the foreign investment.

Practical Scenarios

Here are a few examples of how the BSRD is used:

• Exit of a Foreign Investor: A U.S. citizen who invested USD 500,000 in a Philippine business plans to exit. With a BSRD in place, they can convert earnings or capital (in PHP) into USD and remit the amount through their Philippine bank more conveniently.
• Annual Dividends: A Singaporean company owns shares in a local firm and receives dividends. With a BSRD, the company can remit those dividends in SGD or USD without encountering BSP compliance issues.

Without the BSRD, these transactions may require third-party FX dealers, be delayed, or be questioned by banks under anti-money laundering or foreign investment compliance rules.

FAQs

Q: Is a BSRD needed if the funds came from personal remittances for personal use?
A: No. The BSRD applies specifically to foreign investments, not to personal or unrelated remittances.

Q: Can I apply for a BSRD after the remittance has been made?
A: Yes, but timing is critical. It is best to apply as soon as possible after the remittance, while documents and bank support are still current. Delays may complicate the application process.

Q: Can I remit funds without a BSRD?
A: Technically yes, but the process may be more cumbersome. Without a BSRD, your company may need to find other FX sources or deal with regulatory restrictions.

Final Thoughts

Foreign investors often overlook the BSRD until it is too late. By securing a BSRD at the time of investment, you keep the door open for clean, legal, and bank-approved remittance of funds in the future—whether that is returning capital, paying out dividends, or complying with BSP reporting obligations.

We recommend consulting with legal and financial experts early in the investment process to ensure full compliance.

Need Help with a BSRD?

At Tan Hassani and Counsels, we regularly assist clients in preparing documentation, coordinating with banks, and submitting BSRD applications to the BSP. If you are a foreign investor in the Philippines or planning to set up a Philippine company, we can guide you through the process efficiently.

📞 Contact us at admin@THCounsels.ph or visit https://thcounsels.ph for a consultation.