Setting up a domestic corporation in the Philippines requires precise adherence to the SEC regulations . One of the starting requirements is appointing a Treasurer-in-Trust. This person plays a fundamental role in securing the starting investment prior to the formal approval of the SEC registration.
Understanding the Treasurer in Trust?
Simply put, a treasurer in trust is a temporary officer tasked to receive and manage the paid-up capital of the upcoming corporation . Per the current laws , all stock corporation should appoint someone to serve in this position.
Key Criteria
To serve as a TITF, several conditions apply :
Local Address: The appointee should be a legal inhabitant of the Philippines .
Trustworthiness : They serve as a trustee, meaning they are strictly liable for the capital.
Documentation : A notarized Affidavit of Treasurer-in-Trust will be submitted alongside the registration papers.
The Treasurer-in-Trust Bank Account
Prior to submitting documents to the SEC , the TITF is required to set up a Treasurer in Trust For (TITF) bank account .
Deposit Funding: The founders pay the required equity into this facility.
Bank Certificate : The bank provides a Certificate of Deposit confirming that the money is secured for the future entity.
Fund treasurer in trust philippines incorporation Locking: These deposits are generally restricted until the SEC approves the incorporation .
Why Accuracy in Registration
Failing to properly handle treasurer in trust philippines incorporation the treasurer in trust Philippines incorporation can cause rejection . The SEC strictly examines the Treasurer’s Affidavit to verify that the capital actually exists in a local bank .
Transitioning to a Full Treasurer
When the company receives its SEC treasurer in trust philippines incorporation certificate, the status of the treasurer in trust evolves . The temporary bank account is upgraded into a standard treasurer in trust philippines incorporation business account. At this point , the treasurer in trust philippines incorporation board of directors can formally confirm a regular Treasurer to manage the firm’s fiscal operations.
Final Thoughts
Handling the details of a treasurer in trust Philippines incorporation is a non-negotiable part of starting a venture in the country . By ensuring that the treasurer is a qualified person and that the TITF account is properly established, entrepreneurs can successfully satisfy the registration requirements and focus on their commercial activities.