Establishing a business entity in the Republic of the Philippines requires precise compliance to the Revised Corporation Code . A primary starting steps is designating a treasurer in trust . This person acts a vital role in managing the paid-up investment before the official approval of the SEC registration.
Defining the Treasurer in Trust?
Simply put, a treasurer in trust Philippines incorporation is a provisional representative empowered to collect and hold the initial deposits of the upcoming company. According to the SEC guidelines , all new business must declare a resident to serve in this capacity .
Mandatory Qualifications
In order to serve as a treasurer in trust , specific qualifications apply :
Residency : The treasurer should be a legal inhabitant of the country.
Integrity: They serve as a guardian , implying they are legally responsible for the funds .
Paperwork: A sworn Affidavit of Treasurer-in-Trust will be submitted alongside the registration papers.
The TITF Bank Account
Before submitting documents treasurer in trust philippines incorporation to the Commission, the TITF needs to establish a Treasurer in Trust For (TITF) bank account .
Capital Placement : The incorporators pay the minimum equity into this facility.
Bank Certificate : The bank generates a Certificate of Deposit stating that the treasurer in trust philippines incorporation money is held in trust for the proposed entity.
Withdrawal Restrictions : These deposits are typically treasurer in trust philippines incorporation restricted until such time the SEC grants the incorporation .
Why Correct Handling in Registration
Omitting to properly handle the treasurer in trust Philippines incorporation can result in treasurer in trust philippines incorporation rejection . The SEC meticulously reviews the financial disclosures to ensure that the money actually exists in a Philippine bank.
After Approval to a Regular Treasurer
When the corporation receives its SEC certificate, the status treasurer in trust philippines incorporation of the treasurer in trust shifts. The temporary bank account is upgraded into a standard business account. At this point , the board of directors will officially confirm a regular Chief Financial Officer to manage the firm’s fiscal operations.
Final Thoughts
Managing the details of a treasurer in trust Philippines incorporation is a mandatory step of starting a venture in the Philippines. By guaranteeing that the treasurer is a qualified person and that the bank account is properly set up , entrepreneurs can successfully move through the SEC requirements and begin their business operations .