Establishing a new company in the Republic of the Philippines requires strict compliance to the Revised Corporation Code . A primary starting phases is appointing a TITF . The appointee acts a fundamental function in securing the initial capital before the official approval of the Certificate of Incorporation .
What is the Treasurer in Trust?
Basically , a treasurer in trust Philippines incorporation is a provisional officer empowered to accept and safeguard the initial deposits of the nascent corporation . Per the Philippine regulations, every new business is required to appoint a resident to act in this capacity .
Key Requirements
To serve as a TITF, several qualifications apply :
Residency : The appointee needs to be a legal inhabitant of the Philippines .
Trustworthiness : They serve as a trustee, implying they are legally responsible for the capital.
Documentation : A notarized Treasurer’s Affidavit will be filed alongside the registration papers.
The Treasurer-in-Trust Bank Account
Before sending applications to the SEC , the TITF needs to open a temporary corporate deposit account.
Deposit Funding: The incorporators pay the minimum equity into this account .
Bank Certificate : The financial institution issues a proof of funds treasurer in trust philippines incorporation stating that the money is held in trust for the future corporation .
Fund Locking: These funds are generally frozen until such time the SEC grants the incorporation .
Importance of Accuracy in Incorporation
Failing to correctly handle the treasurer in trust process can lead to legal issues. The SEC strictly reviews the financial disclosures to confirm that the capital truly treasurer in trust philippines incorporation is available in a local bank .
After Approval to a Full treasurer in trust philippines incorporation Treasurer
Once the company receives its SEC certificate, the role of the TITF shifts. The temporary account is transformed into a standard corporate bank account . At this point , the company leadership will formally appoint a regular Chief Financial Officer who treasurer in trust philippines incorporation will manage the company’s fiscal operations.
Conclusion
Handling the legalities of a treasurer in trust is a non-negotiable step of doing business in the Philippines. By guaranteeing that the appointee is a resident and that the TITF account is correctly treasurer in trust philippines incorporation established, investors can successfully move through the SEC requirements and begin their commercial activities.