Launching a new company in the Republic of the Philippines involves precise compliance to the Revised Corporation Code . One of the starting phases is naming a Treasurer-in-Trust. This individual plays a fundamental function in securing the paid-up investment prior to the official approval of the Certificate of Incorporation .
Defining 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 current laws , every new business is required to nominate someone to serve in this position.
Mandatory Requirements
To act as a treasurer in trust , several legal standards apply :
Residency : The individual should be a resident of the country.
Trustworthiness : They serve as a guardian , meaning they are personally accountable for the capital.
Documentation : A sworn Affidavit of Treasurer-in-Trust must be filed alongside the registration papers.
The TITF Bank Account
Prior to filing applications to the treasurer in trust philippines incorporation SEC treasurer in trust philippines incorporation , the TITF must set up a TITF deposit account.
Deposit Funding: The incorporators transfer the required paid-up capital into this facility.
Bank Certificate : The financial institution issues a proof of funds confirming that the capital is secured for the future corporation .
Fund Locking: These deposits are usually frozen until such time the government approves the business permit.
Importance of Correct Handling in Registration
Neglecting to correctly handle the treasurer in trust process can result in delays . The SEC meticulously checks the Treasurer’s Affidavit to verify that the money actually exists in a local bank .
After Approval to a Full Treasurer
When the corporation is officially registered , the status of the TITF changes . The trust bank account is upgraded treasurer in trust philippines incorporation into a regular corporate bank account . At this point , the board of directors may officially confirm a regular Chief Financial Officer who will manage the company’s finances .
Summary
Handling the details of a treasurer in trust is a critical step of doing business in the country . By making sure that treasurer in trust philippines incorporation the appointee is a resident and that the TITF account is correctly set up treasurer in trust philippines incorporation , entrepreneurs can successfully move through the SEC process and start their commercial activities.