Setting up a new company in the Philippines requires careful compliance to the Revised Corporation Code . An essential starting phases is designating a TITF . This person serves a vital function in securing the starting funds before the formal issuance of the Certificate of Incorporation .
What is the Treasurer in Trust?
Simply put, a treasurer in trust is a provisional officer authorized to collect and safeguard the paid-up capital of the proposed company. Per the current laws , all new business should declare a resident to act in this capacity .
Essential Qualifications
To act as a treasurer in trust , several qualifications apply :
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 Treasurer’s Affidavit must be filed alongside the registration papers.
The TITF treasurer in trust philippines incorporation Bank Account
Prior to filing applications to treasurer in trust philippines incorporation the SEC , the TITF needs to open a temporary corporate bank account .
Capital Placement : The founders deposit the required paid-up capital into this facility.
Bank Certificate : The financial institution issues a proof of funds stating that the money is held in trust for the future corporation .
Withdrawal Restrictions : These deposits are typically locked until the government approves the business permit.
Importance of Accuracy in Incorporation
Failing to correctly handle the treasurer in trust process can lead to rejection . The Securities and Exchange Commission strictly checks the Treasurer’s Affidavit to confirm that the capital truly is available in a local bank .
Transitioning to a Full Treasurer
Once the company receives its SEC treasurer in trust philippines incorporation certificate, the role of the TITF shifts. The temporary bank account is upgraded into a regular business account. At this stage, the board of directors may officially appoint a permanent Chief Financial Officer who will manage the firm’s fiscal operations.
Conclusion
Handling the legalities of a treasurer in treasurer in trust philippines incorporation trust Philippines incorporation is a critical part of doing business in the country . By making sure that the treasurer is a qualified person and that the treasurer in trust philippines incorporation TITF account is properly established, entrepreneurs can effectively satisfy the registration requirements and begin their commercial activities.