Establishing a new company in the Republic of the Philippines involves careful compliance to the legal framework. One of the initial requirements is designating a treasurer in trust . This individual serves a crucial function in securing the paid-up investment ahead of the official approval of the Certificate of Incorporation .
What is the Treasurer in Trust?
In essence , a treasurer in trust is a provisional representative tasked to collect and manage the subscription payments of the proposed corporation . Under the current laws , every stock corporation must declare someone to act in this capacity .
Key Requirements
For one to act as a TITF, several legal standards are necessary:
Local Address: The treasurer should be a resident of the Philippines .
Trustworthiness : They act as a trustee, suggesting they are personally accountable for the capital.
Documentation : A notarized Treasurer’s Affidavit must be filed with the registration papers.
The TITF Bank Account
Before submitting applications to the Commission, the TITF needs to open a Treasurer in Trust For (TITF) deposit account.
Capital Placement : The incorporators pay the required equity into this account .
Proof of Deposit: The financial institution provides a Certificate of Deposit stating that the money is secured for the proposed corporation .
Fund Locking: These funds are usually locked until such time the SEC grants the business permit.
Why Correct Handling in Incorporation
Neglecting to properly document the treasurer in trust process can lead to legal issues. The Securities and Exchange Commission carefully checks the treasurer in trust philippines incorporation financial disclosures to ensure that the money truly exists in a Philippine bank.
Transitioning to a Full Treasurer
After the corporation receives its SEC certificate, the role of the TITF changes . The trust bank account is converted into a standard corporate bank account . At this stage, the treasurer in trust philippines incorporation board of directors will formally confirm a permanent Chief Financial Officer to oversee the company’s finances .
Final Thoughts
Navigating the legalities of a treasurer in trust Philippines incorporation treasurer in trust philippines incorporation is a mandatory step of starting a venture in the country . By guaranteeing that the appointee is a qualified treasurer in trust philippines incorporation person and that the TITF deposit is correctly established, entrepreneurs can effectively move through treasurer in trust philippines incorporation the SEC process and begin their commercial activities.