Setting up a business entity in the Philippines necessitates precise adherence to the Revised Corporation Code . An essential first requirements is designating a treasurer in trust . This person acts a crucial role in handling the initial funds prior to the formal issuance of the Certificate of Incorporation .
What is the Treasurer in Trust?
Simply put, a treasurer in trust is a designated officer authorized to collect and safeguard the initial deposits of the proposed company. Per the Philippine regulations, every stock corporation is required to declare a resident to serve in this position.
Essential Criteria
For one to serve as a TITF, certain conditions must be met :
Residency : The treasurer should be a legal inhabitant of the country.
Trustworthiness : They act as a guardian , implying they are legally accountable for the capital.
Documentation : A sworn Treasurer’s Affidavit will be submitted alongside the Articles of Incorporation .
The TITF Bank Account
Before submitting applications to the SEC , the treasurer in trust philippines incorporation treasurer in trust is required to set up a temporary corporate deposit account.
Deposit Placement : The incorporators deposit the minimum treasurer in trust philippines incorporation equity treasurer in trust philippines incorporation into this facility.
Proof of Deposit: The bank generates a proof of funds confirming that the capital is held in trust for the future corporation .
Withdrawal Restrictions : These deposits are typically restricted until such time the SEC approves the business permit.
Why Accuracy in Incorporation
Neglecting to properly handle the treasurer in trust Philippines incorporation can lead to legal issues. The Securities and Exchange Commission strictly reviews the financial disclosures to confirm that the capital physically exists in a Philippine bank.
After Approval to a Regular Treasurer
When the corporation receives its SEC certificate, the status of the treasurer in trust changes . The trust account is transformed into a standard corporate bank account . At this stage, the company leadership can officially confirm a permanent Chief Financial Officer who will manage the company’s fiscal operations.
Conclusion
Handling the legalities of a treasurer in trust Philippines incorporation is a mandatory step of treasurer in trust philippines incorporation doing business in the Philippines. By guaranteeing that the appointee is a resident and that the bank deposit is correctly set up , investors can efficiently move through the SEC process and start their business treasurer in trust philippines incorporation operations .