Launching a new company in the Philippines requires careful compliance to the Revised Corporation Code . A primary starting requirements is appointing a Treasurer-in-Trust. This person acts a fundamental role in handling the paid-up capital prior to the formal issuance of the Certificate of Incorporation .
Defining the Treasurer in Trust?
Basically , a treasurer in trust is a designated representative authorized to accept and manage the paid-up capital of the upcoming corporation . Per the Philippine regulations, each new business should nominate a resident to act in this capacity .
Essential Requirements
In order to act as a treasurer in trust , certain conditions must be met :
Residency : 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 treasurer in trust philippines incorporation Articles of Incorporation .
The Treasurer-in-Trust Bank Account
Before filing documents to the Commission, the TITF must set up a TITF deposit account.
Capital Funding: The founders transfer the minimum paid-up capital into this facility.
Proof of Deposit: The financial institution issues a Certificate of Deposit confirming that the money is secured for the future corporation .
Withdrawal Restrictions : These funds are usually restricted until such time the government grants the business permit.
Why Correct Handling in Registration
Neglecting to properly manage the treasurer in trust Philippines incorporation can result in treasurer in trust philippines incorporation delays . The Securities and Exchange Commission meticulously checks the financial disclosures to confirm that the money physically exists in a local bank .
After Approval to a Full Treasurer
Once the company receives its treasurer in trust philippines incorporation SEC certificate, the role of the TITF evolves . The trust account is upgraded into a regular business account. At this point , the board of directors treasurer in trust philippines incorporation will officially appoint a regular Treasurer who will oversee the company’s finances .
Final treasurer in trust philippines incorporation Thoughts
Handling the nuances of a treasurer in trust Philippines incorporation is a mandatory step of doing business in the Philippines. By ensuring that the treasurer is a qualified person and that the TITF deposit is properly established, entrepreneurs can efficiently complete the SEC process and focus on their commercial activities.