Setting up a domestic corporation in the Philippines requires careful compliance to the Revised Corporation Code . An essential first steps is naming a Treasurer-in-Trust. This individual acts a crucial function in securing the paid-up capital ahead of the formal issuance of the SEC registration.
What is the Treasurer in Trust?
Simply put, a treasurer in trust Philippines incorporation is a designated officer tasked to accept and manage the initial deposits of the upcoming company. Under the Philippine regulations, every new business is required to nominate someone to act in this capacity .
Key Criteria
To act as a TITF, certain conditions must be met :
Residency : The treasurer must be a resident of the Philippines .
Trustworthiness : They act as a guardian , implying they are legally liable for the capital.
Paperwork: A sworn Affidavit of Treasurer-in-Trust shall be filed with the Articles of Incorporation .
The TITF Bank Account
Before sending applications to the SEC , the treasurer in trust must establish a Treasurer in Trust For (TITF) deposit account.
Capital Placement : The founders transfer the minimum equity into this facility.
Bank Certificate : The financial institution generates a Certificate of Deposit verifying that the capital is secured for the proposed entity.
Withdrawal Restrictions : These deposits are usually locked until the SEC grants the incorporation .
Importance of Accuracy treasurer in trust philippines incorporation in Registration
Failing to properly handle the treasurer in trust process can lead to legal issues. The SEC strictly reviews the Treasurer’s Affidavit to confirm that the capital truly is available in a local bank .
Transitioning to a Full Treasurer
Once the corporation receives its SEC certificate, the role of the treasurer in trust changes treasurer in trust philippines incorporation . The temporary account is upgraded into a regular corporate bank account . At this point , the company leadership can formally appoint a regular Chief Financial Officer to manage the firm’s finances treasurer in trust philippines incorporation .
Final Thoughts
Managing the details treasurer in trust philippines incorporation of a treasurer in trust is a non-negotiable step of starting a venture in the country . By guaranteeing that the appointee is a resident and that the bank deposit is correctly established, entrepreneurs treasurer in trust philippines incorporation can successfully satisfy the SEC requirements and start their commercial activities.