Setting up a new company in the Philippines requires careful compliance to the Revised Corporation Code . An essential starting requirements is designating a TITF . This person plays a vital function in managing the starting capital before the formal approval of the Certificate of Incorporation .
What is the Treasurer in Trust?
Simply put, a treasurer in trust is a provisional officer tasked to collect and safeguard the paid-up capital of the upcoming company. Per the current laws , all new business 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 .
Integrity: They serve as a fiduciary , suggesting they are strictly liable for the capital.
Documentation : A sworn Treasurer’s Affidavit will be filed alongside the registration papers.
The TITF Bank Account
Prior to filing applications to the SEC , the TITF needs to set up a TITF bank account .
Capital Placement : The founders deposit the required equity into this account .
Proof of Deposit: The bank generates a Certificate of Deposit verifying that the capital is secured for the proposed entity.
Withdrawal Restrictions : These deposits are usually frozen until the SEC grants the incorporation .
Importance of Accuracy in Incorporation
Omitting to properly document treasurer in trust philippines incorporation the treasurer in trust Philippines incorporation can result in delays . The Securities and Exchange Commission carefully examines the financial disclosures to ensure that the money actually exists in a Philippine bank.
Transitioning to a Regular Treasurer
When the corporation receives its SEC certificate, the status of the treasurer in trust changes . The trust account treasurer in trust philippines incorporation is transformed into a standard corporate bank account . At this point , the company leadership can formally confirm a regular Treasurer who will oversee the company’s treasurer in trust philippines incorporation finances .
Final Thoughts
Navigating the details of a treasurer in trust is a non-negotiable treasurer in trust philippines incorporation step of starting a venture in the Philippines. By ensuring that the appointee is treasurer in trust philippines incorporation a qualified person and that the bank account is correctly set up , investors can efficiently move through the SEC process and start their business operations .