Establishing a domestic corporation in the Philippines involves strict compliance to the Revised Corporation Code . A primary starting phases is naming a Treasurer-in-Trust. This individual plays a crucial role in managing the starting funds ahead of the formal issuance of the SEC registration.
Defining the Treasurer in Trust?
Simply put, a treasurer in trust is a designated representative tasked to collect and manage the subscription payments of the upcoming corporation . According to the current laws , every stock corporation must declare someone to act in this position.
Essential Criteria
For one to act as a treasurer in trust , certain legal standards apply :
Residency : The appointee must be a legal inhabitant of the country.
Trustworthiness : They serve as a trustee, implying they are legally responsible for the capital.
Documentation : A notarized Affidavit of Treasurer-in-Trust shall be submitted with the registration papers.
The TITF Bank Account
Prior to filing documents to the Commission, the TITF must set up a TITF bank account .
Capital Funding: The founders transfer the minimum equity into treasurer in trust philippines incorporation this facility.
Proof of Deposit: The financial institution provides a Certificate of Deposit treasurer in trust philippines incorporation verifying that the capital is held in trust for the proposed entity.
Withdrawal Restrictions : These deposits are typically restricted until such time the government issues the business permit.
Why Correct Handling in Registration
Failing to correctly handle the treasurer in trust Philippines incorporation can result in rejection . The Securities and Exchange Commission strictly checks the financial treasurer in trust philippines incorporation disclosures to confirm that the capital truly is available in a local bank .
After Approval to a Full Treasurer
After the company is officially registered , the status of the TITF evolves . The temporary bank account is upgraded into treasurer in trust philippines incorporation a regular corporate bank account . At this point , the company leadership will officially appoint a regular Chief Financial Officer who will manage the company’s fiscal operations.
Final Thoughts
Managing the nuances of treasurer in trust philippines incorporation a treasurer in trust is a non-negotiable step of doing business in the Philippines. By guaranteeing that the appointee is a resident and that the TITF account is correctly set up , investors can efficiently move through the SEC process and begin their business operations .