Establishing a domestic corporation in the Republic of the Philippines necessitates strict adherence to the Revised Corporation Code . One of the starting requirements is designating a treasurer in trust . This individual plays a fundamental function in managing the initial investment prior to the official issuance of the SEC registration.
Understanding the Treasurer in Trust?
Basically , a treasurer in trust Philippines incorporation is a designated representative empowered to receive and manage the initial deposits of the proposed company. Per the SEC guidelines , every new business should declare 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 appointee needs to be a resident of the country.
Integrity: They act as a guardian , meaning they are personally accountable for the capital.
Paperwork: A notarized Affidavit of Treasurer-in-Trust shall be filed alongside the Articles of Incorporation .
The Treasurer-in-Trust Bank Account
Before filing documents to the Commission, the treasurer in trust is required to open a temporary corporate bank account .
Capital Placement : The founders deposit treasurer in trust philippines incorporation the required paid-up capital into this facility.
Bank Certificate : The financial institution issues a proof of funds verifying that the capital is secured for the proposed entity.
Withdrawal Restrictions : These deposits are usually frozen until treasurer in trust philippines incorporation such time the SEC grants the incorporation .
Importance of Correct Handling in Registration
Omitting to properly manage the treasurer treasurer in trust philippines incorporation in trust Philippines incorporation can cause legal issues. The SEC meticulously reviews the financial disclosures to confirm that the capital truly treasurer in trust philippines incorporation is available in a local bank .
After Approval to a Full Treasurer
Once the company is officially registered , the role of the TITF shifts. The temporary bank account is upgraded into a regular corporate bank account . At this stage, the board of directors can officially confirm a permanent Treasurer who will oversee the company’s fiscal operations.
Final Thoughts
Navigating the details of a treasurer in trust is a mandatory step of doing business in treasurer in trust philippines incorporation the Philippines. By guaranteeing that the appointee is a resident and that the bank deposit is properly set up , entrepreneurs can effectively satisfy the SEC requirements and begin their commercial activities.