Setting up a new company in the Republic of the Philippines requires strict compliance to the legal framework. A primary starting steps is appointing a Treasurer-in-Trust. This individual serves a fundamental role in managing the initial capital 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 initial deposits of the proposed company. Per the SEC guidelines , every stock corporation is required to nominate someone to serve in this capacity .
Key Criteria
In order to serve as a TITF, specific conditions are necessary:
Residency : The appointee should be a resident of the country.
Trustworthiness : They act as a guardian , meaning they are personally accountable for the funds .
Paperwork: A notarized Affidavit of Treasurer-in-Trust shall be filed with the Articles of Incorporation .
The Treasurer-in-Trust Bank Account
Before sending documents treasurer in trust philippines incorporation to the Commission, the treasurer in trust is required to establish a Treasurer in Trust For (TITF) deposit account.
Deposit Funding: treasurer in trust philippines incorporation The incorporators transfer the minimum equity into this account .
Proof of Deposit: The bank provides a Certificate of Deposit confirming that the capital is secured for the future corporation .
Fund Locking: These funds are generally frozen until such time treasurer in trust philippines incorporation the SEC issues the incorporation .
Importance of Correct Handling in Registration
Omitting to properly manage the treasurer in trust Philippines incorporation can result in delays . The Securities and Exchange Commission carefully examines the Treasurer’s Affidavit to verify that the money actually is available in a local bank .
Transitioning to a Full Treasurer
Once the corporation receives its SEC 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 to manage the firm’s finances .
Summary
Handling the legalities of a treasurer in trust Philippines incorporation is a critical part of doing business in the country . By treasurer in trust philippines incorporation guaranteeing that the treasurer is a resident and that the TITF deposit is properly set up , entrepreneurs can efficiently move treasurer in trust philippines incorporation through the SEC requirements and start their commercial activities.