Setting up a new company in the Republic of the Philippines requires strict compliance to the SEC regulations . An essential initial requirements is designating a treasurer in trust . This person serves a vital function in securing the initial capital ahead of the official approval of the Certificate of Incorporation .
Defining the Treasurer in Trust?
Simply put, a treasurer in trust Philippines incorporation is a provisional representative tasked to receive and hold the initial deposits of the nascent company. Under the current laws , every stock corporation should nominate a resident to serve in this position.
Essential Requirements
To serve as a treasurer in trust , certain legal standards are necessary:
Local Address: The appointee must be a resident of the Philippines .
Trustworthiness : They act as a fiduciary , meaning they are legally responsible for the capital.
Paperwork: A sworn Affidavit of Treasurer-in-Trust will be filed with the Articles of Incorporation .
The TITF Bank Account
Before submitting documents to the SEC , the TITF is required to set up a temporary corporate deposit account.
Capital Funding: The founders transfer the required equity into this facility.
Bank Certificate : The financial institution generates a proof of funds confirming that the capital is held in trust for the future entity.
Fund Locking: These funds are usually restricted treasurer in trust philippines incorporation until such time the government issues the incorporation .
Why Correct Handling in Incorporation
Neglecting to properly document the treasurer in trust process can cause rejection . The SEC meticulously checks the financial disclosures treasurer in trust philippines incorporation to treasurer in trust philippines incorporation ensure that the money physically exists in a local bank .
After Approval to a Full Treasurer
After the corporation receives its SEC certificate, the role of the treasurer in trust shifts. The temporary account treasurer in trust philippines incorporation is upgraded into a regular corporate bank account . At this stage, the board of directors will officially appoint a regular Treasurer to oversee the firm’s finances .
Final Thoughts
Handling the details of a treasurer in trust Philippines incorporation is a mandatory step of starting a venture in the Philippines. By ensuring that the treasurer is a resident and that the bank account is properly set up , investors can effectively move through the treasurer in trust philippines incorporation registration requirements and begin their commercial activities.