Establishing a new company in the Philippines involves careful adherence to the Revised Corporation Code . A primary initial steps is naming a Treasurer-in-Trust. The appointee acts a crucial function in handling the initial investment before the formal approval of the SEC registration.
What is the Treasurer in Trust?
In essence , a treasurer in trust is a designated representative authorized to collect and hold the subscription payments of the proposed corporation . According to the current laws , every new business must declare someone to act in this position.
Mandatory Criteria
To act as a TITF, certain legal standards must be met :
Residency : The individual needs to be a legal inhabitant of the country.
Integrity: They serve as a guardian , implying they are personally responsible for the capital.
Documentation : A sworn Affidavit of Treasurer-in-Trust will be filed alongside the Articles of Incorporation .
The Treasurer-in-Trust Bank Account
Prior to filing applications to the SEC , the TITF needs to open a temporary corporate deposit account.
Deposit Placement : The founders deposit the minimum paid-up capital into this facility.
Bank Certificate : The bank generates treasurer in trust philippines incorporation a proof of funds stating that the capital is held in trust for the future entity.
Fund Locking: These deposits are usually locked until the government approves the incorporation .
Importance of Correct Handling in Incorporation
Neglecting to properly document treasurer in trust philippines incorporation the treasurer in trust Philippines incorporation can lead to delays . The SEC strictly checks the Treasurer’s Affidavit to treasurer in trust philippines incorporation confirm that the money actually is available in a local bank .
After Approval to a Regular Treasurer
When the corporation is officially registered , the role of treasurer in trust philippines incorporation the TITF shifts. The trust bank account is converted into a standard business account. At this point , the board of directors can formally confirm a regular Chief Financial Officer to manage the company’s fiscal operations.
Conclusion
Managing the legalities of a treasurer in trust is a critical step of starting a venture in the country . By making sure that the treasurer is a qualified person and that the TITF deposit is properly established, entrepreneurs can efficiently move through treasurer in trust philippines incorporation the SEC requirements and begin their commercial activities.