GUIDE FOR FOREIGN COMPANIES SETTING UP 5-PERSON TEAM IN CEBU

April 12th, 2026

Business professionals shaking hands over a desk with a laptop and printed charts

This checklist is designed for a foreign business leader who wants to hire a 5-person team in Cebu using Kaptan Talent Solutions as their Employer of Record (EOR).

In 2026, the process is streamlined but requires strict adherence to updated DOLE (Department of Labor and Employment) and AI-compliance standards.

Phase 1: Setup & Compliance (Days 1–3)

Before you even interview a candidate, Kaptan handles the legal foundation. As a foreign firm, you don’t need a local entity, but you do need a compliant “Paper Trail.”

[ ] Service Agreement Execution: Sign the Master Service Agreement (MSA) with Kaptan. This defines the EOR relationship, where Kaptan is the “Legal Employer” and you are the “Operational Manager.”
[ ] Cost-of-Hire Analysis: Review the 2026 Statutory Contribution Rates.
- SSS (Social Security): 15% (10% Employer / 5% Employee).
- PhilHealth: 5% (shared 2.5% each).
- Pag-IBIG: 2% (capped at ₱200 each for employer and employee).
[ ] 13th Month Accrual: Confirm that 1/12th of the monthly basic salary is being accrued for the mandatory year-end payment (due by Dec 24).

Phase 2: Job Definition & Talent Sourcing (Days 4–10)

Since you are hiring in Cebu, your job descriptions should highlight “The Cebu Advantage” (lifestyle, tech hub status) to attract top-tier movers.

[ ] DOLE-Compliant Job Descriptions: Kaptan reviews your JDs to ensure they don’t violate 2026 labor standards (e.g., ensuring roles aren’t misclassified as “Contractors” if they meet the “Four-Fold Test” of control).
[ ] AI-Screening Consent: Per 2026 data privacy guidelines, ensure candidates provide explicit consent if you are using AI tools for initial resume screening or personality assessments.
[ ] Candidate Shortlisting: Kaptan presents the top 5 candidates per role specifically from the Cebu/Visayas talent pool.

Phase 3: Onboarding & Enrollment (Days 11–15)

Once you’ve selected your 5-person team, the “Paperwork Sprint” begins.

[ ] Contract Issuance: Kaptan issues “Regular” or “Probationary” (max 6 months) contracts. Note: 2026 contracts now often include “Remote Work/Hybrid” clauses as a standard requirement.
[ ] Statutory Registration: Kaptan enrolls the employees in the SSS, PhilHealth, and Pag-IBIG portals.
[ ] Background & “Right to Work” Checks: Verification of NBI clearances (criminal record) and previous employment history.
[ ] Equipment Logistics: If the team is remote, Kaptan coordinates the delivery of laptops and secure hardware.

Phase 4: Operational Kickoff (Day 16+)

Your team is now legally employed and ready to work under your direction.

[ ] Payroll Calendar Setup: Align your payment cycle (usually semi-monthly: 15th and 30th) with Kaptan’s payroll processing.
[ ] Culture Integration: Schedule a “Virtual Welcome” or a physical meet-up in Cebu IT Park to bridge the gap between your home office and the new Philippine team.
[ ] Performance Roadmap: Set the 30-60-90 day KPIs. Kaptan handles the HR documentation; you handle the output.

Executive Summary of 2026 Costs