Launching a business entity in the Republic of the Philippines necessitates precise adherence to the SEC regulations . A primary starting phases is naming a treasurer in trust . The appointee plays a crucial function in managing the starting funds ahead of the official approval of the SEC registration.
What is the Treasurer in Trust?
In essence , a treasurer in trust is a temporary representative authorized to receive and hold the subscription payments of the proposed corporation . Per the Philippine regulations, all stock corporation must declare someone to serve in this position.
Key Requirements
In order to act as a TITF, specific conditions must be met :
Residency : The individual must be a resident of the Philippines .
Trustworthiness : They act as a fiduciary , meaning they are legally liable for the capital.
Documentation : A notarized Treasurer’s Affidavit shall be submitted alongside the Articles of Incorporation .
The TITF Bank Account
Prior to submitting documents to the Commission, the treasurer in trust needs to open a temporary corporate bank account .
Capital treasurer in trust philippines incorporation Funding: The founders deposit the required paid-up capital into this facility.
Proof of Deposit: The bank provides a proof of funds treasurer in trust philippines incorporation confirming that the money is held in trust for the future corporation .
Fund Locking: These funds are generally frozen until such time the SEC issues the treasurer in trust philippines incorporation business permit.
Importance of Correct Handling in Incorporation
Omitting to correctly document the treasurer in trust Philippines incorporation can cause rejection . The Securities and Exchange Commission carefully reviews the Treasurer’s Affidavit to verify that the capital truly is available in a Philippine bank.
Transitioning to a Regular Treasurer
Once the corporation receives its SEC certificate, the status of the TITF evolves . The temporary account is transformed into a regular corporate bank account . At this stage, the company leadership may formally appoint a permanent Chief Financial Officer who will oversee the firm’s fiscal operations.
Summary
Handling the nuances of a treasurer in trust Philippines treasurer in trust philippines incorporation incorporation is a non-negotiable step of starting a venture in the Philippines. By making sure that the appointee is a qualified person and that the bank deposit is correctly set up , investors can effectively treasurer in trust philippines incorporation move through the registration process and begin their business operations .