Setting up a business entity in the Republic of the Philippines involves precise adherence to the Revised Corporation Code . One of the starting requirements is designating a treasurer in trust . This individual acts a fundamental role in handling the paid-up investment prior to the official issuance of the SEC registration.
Understanding the Treasurer in Trust?
Basically , a treasurer in trust is a provisional officer authorized to collect and safeguard the paid-up capital of the upcoming corporation . According to the Philippine regulations, each stock corporation is required to nominate someone to serve in this capacity .
Key Criteria
In order to serve as a TITF, certain legal standards apply :
Residency : The individual should be a legal inhabitant of the country.
Trustworthiness : They serve as a fiduciary , suggesting they are strictly liable for the capital.
Documentation : A sworn Treasurer’s Affidavit will be submitted with the Articles of Incorporation .
The Treasurer-in-Trust Bank Account
Prior to submitting applications to the SEC , the TITF must establish a Treasurer in Trust For (TITF) deposit account.
Deposit Funding: The incorporators transfer the minimum equity into this account .
Bank Certificate treasurer in trust philippines incorporation : The financial institution provides a proof of funds confirming that the money is held in trust for the future corporation treasurer in trust philippines incorporation .
Fund Locking: These funds are typically locked until the government approves the business permit.
Why Accuracy in Incorporation
Failing to correctly handle treasurer in trust philippines incorporation the treasurer in trust process can lead to rejection . The Securities and Exchange Commission strictly checks the Treasurer’s Affidavit to verify that the money physically treasurer in trust philippines incorporation is available in a local bank .
After Approval to a Full Treasurer
Once the company receives its SEC certificate, the role of the treasurer in trust 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 to manage the firm’s finances .
Conclusion
Handling the legalities of a treasurer in trust Philippines incorporation is a critical part of starting a venture in the Philippines. By ensuring that the appointee is a qualified person and that the bank deposit is correctly set up , entrepreneurs can effectively treasurer in trust philippines incorporation satisfy the registration requirements and begin their commercial activities.