Establishing a domestic corporation in the Republic of the Philippines necessitates strict adherence to the SEC regulations . A primary initial steps is appointing a treasurer in trust . This individual acts a fundamental function in managing the initial capital ahead of the formal approval of the Certificate of Incorporation .
What is the Treasurer in Trust?
Simply put, a treasurer in trust is a provisional officer authorized to collect and safeguard the initial deposits of the proposed company. Per the SEC guidelines , each stock corporation is required to nominate someone to serve in this capacity .
Key Criteria
In order to serve as a TITF, specific conditions are necessary:
Local Address: The appointee needs to be a resident of the Philippines .
Integrity: They act as a trustee, implying they are legally liable for the funds .
Paperwork: A notarized Treasurer’s Affidavit will be submitted with the registration papers.
The TITF Bank Account
Prior to submitting applications treasurer in trust philippines incorporation to the SEC , the TITF needs to set up a TITF bank account .
Capital Placement : The founders deposit treasurer in trust philippines incorporation the required paid-up capital into this facility.
Bank Certificate : The financial institution issues treasurer in trust philippines incorporation a proof of funds stating that the money is held in trust for the treasurer in trust philippines incorporation future corporation .
Fund Locking: These deposits are typically locked until the government approves the business permit.
Why Correct Handling in Incorporation
Neglecting to correctly handle the treasurer in trust process can cause legal issues. The SEC strictly reviews the financial disclosures to ensure that the capital physically exists in a Philippine bank.
After Approval to a Regular Treasurer
After the corporation is officially registered , the status of the treasurer in trust changes . The trust account is transformed into a standard corporate bank account . At this point , the company leadership can formally confirm a regular Treasurer to oversee treasurer in trust philippines incorporation the company’s finances .
Summary
Managing the nuances of a treasurer in trust is a mandatory step of doing business in the Philippines. By guaranteeing that the appointee is a resident and that the TITF deposit is properly set up , entrepreneurs can efficiently satisfy the SEC requirements and begin their commercial activities.