Establishing a domestic corporation in the Republic of the Philippines requires precise compliance to the Revised Corporation Code . An essential first phases is designating a treasurer in trust . The appointee serves a vital function in handling the paid-up capital prior to the formal issuance of the Certificate of Incorporation .
What is the Treasurer in Trust?
Basically , a treasurer in trust Philippines incorporation is a designated officer tasked to accept and manage the paid-up capital of the nascent corporation . Under the SEC guidelines , each new business must declare a resident to act in this capacity .
Mandatory Criteria
In order to act as a TITF, specific legal standards apply :
Residency : The individual should be a resident of the country.
Trustworthiness : They act as a guardian , meaning they are personally accountable for the capital.
Documentation : A notarized Affidavit of Treasurer-in-Trust shall be filed alongside treasurer in trust philippines incorporation the Articles of Incorporation .
The Treasurer-in-Trust Bank Account
Before sending documents to the Commission, the treasurer in trust must establish a Treasurer in Trust For (TITF) deposit account.
Deposit treasurer in trust philippines incorporation Funding: The incorporators pay the minimum equity into this account .
Proof of Deposit: The bank generates a Certificate of Deposit verifying that the capital is treasurer in trust philippines incorporation secured treasurer in trust philippines incorporation for the proposed entity.
Withdrawal Restrictions : These deposits are usually frozen until the SEC grants the incorporation .
Importance of Accuracy in Incorporation
Failing to correctly document the treasurer in trust process can lead to delays . The Securities and Exchange Commission meticulously checks the financial disclosures to verify that the capital actually exists in a Philippine bank.
After Approval to a Full Treasurer
After the corporation is officially registered , the status of the TITF changes . The temporary bank account is transformed into a regular business account. At this point , the company leadership can formally confirm a regular Treasurer to manage the firm’s finances .
Conclusion
Handling the legalities of a treasurer in trust is a non-negotiable part of starting treasurer in trust philippines incorporation a venture in the country . By guaranteeing that the treasurer is a resident and that the TITF deposit is properly established, entrepreneurs can effectively move through the SEC process and start their business operations .