Launching a business entity in the Philippines requires careful compliance to the legal framework. An essential first requirements is appointing a treasurer in trust . This individual plays a fundamental function in managing the initial capital ahead of the formal approval of the Certificate of Incorporation .
Defining the Treasurer in Trust?
Simply put, a treasurer in trust is a provisional officer tasked to accept and safeguard the paid-up capital of the upcoming company. According to the current laws , all stock corporation must appoint a resident to act in this position.
Mandatory Requirements
For one to act as a treasurer in trust , several qualifications must be met :
Local Address: The treasurer must be a legal inhabitant of the Philippines .
Trustworthiness : They serve as a fiduciary , suggesting they are strictly responsible for the capital.
Documentation : A sworn Affidavit of Treasurer-in-Trust must be filed alongside the registration papers.
The TITF Bank Account
Before filing documents to the Commission, the treasurer in trust is required to establish a temporary corporate bank account .
Deposit Funding: The incorporators transfer the minimum equity into this account .
Bank Certificate : The financial institution provides a treasurer in trust philippines incorporation Certificate treasurer in trust philippines incorporation of Deposit confirming that the money is held in trust for the future corporation .
Fund Locking: These funds are generally restricted until such time the SEC issues treasurer in trust philippines incorporation the incorporation .
Importance of Correct Handling in Registration
Omitting to properly document the treasurer in trust Philippines incorporation can result in delays . The Securities and treasurer in trust philippines incorporation Exchange Commission carefully examines the Treasurer’s Affidavit to verify that the money actually is available in a local bank .
Transitioning to a Full Treasurer
Once the corporation receives its SEC certificate, the role of the TITF shifts. The temporary bank account is converted into a regular business account. At this stage, the board of directors may officially appoint a regular Chief Financial Officer to manage the firm’s finances .
Summary
Managing the legalities of a treasurer in trust Philippines incorporation is a critical part of doing business in the country . By guaranteeing that the appointee is a resident and that the TITF deposit is properly set up , entrepreneurs can treasurer in trust philippines incorporation efficiently move through the SEC requirements and start their commercial activities.