Establishing a domestic corporation in the Philippines involves careful adherence to the SEC regulations . One of the initial steps is naming a Treasurer-in-Trust. This person acts a crucial role in securing the initial funds ahead of the official issuance of the Certificate of Incorporation .
Understanding the Treasurer in Trust?
Basically , a treasurer in trust is a temporary representative tasked to accept and hold the subscription payments of the nascent company. Under the current laws , each new business must nominate someone to act in this capacity .
Mandatory Criteria
For one to serve as a treasurer in trust , specific legal standards must be met :
Residency : The treasurer needs to be a legal inhabitant of the Philippines .
Integrity: They serve as a fiduciary , meaning they are legally accountable for the funds .
Documentation : A sworn Treasurer’s Affidavit must be filed with the Articles of Incorporation .
The TITF Bank Account
Prior to submitting documents to the Commission, the treasurer in trust is required to open a TITF deposit account.
Deposit Funding: The founders transfer treasurer in trust philippines incorporation the minimum equity into this facility.
Bank Certificate : The bank generates a Certificate treasurer in trust philippines incorporation of Deposit confirming that the capital is secured for the future corporation .
Withdrawal Restrictions : These deposits are typically restricted until such time the SEC approves the treasurer in trust philippines incorporation incorporation .
Why Correct Handling in Registration
Omitting to correctly document the treasurer in trust Philippines incorporation can cause delays . The Securities and Exchange Commission strictly checks the financial disclosures to ensure that the money physically exists in a local bank .
Transitioning to a Full Treasurer
Once the company is officially registered , the status of the treasurer in trust shifts. The temporary account is transformed into a standard corporate bank account . At this stage, the board of directors may officially appoint a regular Chief Financial Officer who will oversee the firm’s finances .
Final Thoughts
Navigating the details of a treasurer in trust treasurer in trust philippines incorporation Philippines incorporation is a critical part of doing business in the Philippines. By guaranteeing that the treasurer is a qualified person and that the bank account is correctly set up , investors can efficiently complete the SEC process and focus on treasurer in trust philippines incorporation their business operations .