Establishing a domestic corporation in the Republic of the Philippines necessitates precise adherence to the Revised Corporation Code . A primary starting steps is designating a treasurer in trust . This person acts a vital role in securing the initial funds ahead of the formal approval of the SEC registration.
Defining the Treasurer in Trust?
Basically , a treasurer in trust Philippines incorporation is a designated representative authorized to accept and safeguard the subscription payments of the proposed corporation . Per the Philippine regulations, every stock corporation should appoint a resident to act in this capacity .
Mandatory Qualifications
For one to act as a TITF, certain conditions apply :
Residency : The treasurer needs to be a legal inhabitant of the country.
Integrity: They serve as a fiduciary , meaning they are legally responsible for the funds .
Documentation : A notarized Affidavit of Treasurer-in-Trust will be filed with the registration papers.
The Treasurer-in-Trust Bank Account
Prior to sending applications to the Commission, the TITF is required to set up a treasurer in trust philippines incorporation temporary corporate deposit account.
Capital Funding: The founders transfer the minimum paid-up capital into this account .
Bank Certificate : The bank issues a Certificate of Deposit verifying that the money is secured for the treasurer in trust philippines incorporation future corporation .
Withdrawal Restrictions : These funds are usually locked until such time the government issues the incorporation .
Why Accuracy treasurer in trust philippines incorporation in Incorporation
Omitting to correctly manage the treasurer in trust process can cause delays treasurer in trust philippines incorporation . The SEC meticulously checks the financial disclosures to verify that the capital physically is available in a local bank .
Transitioning to a Regular Treasurer
When the corporation is officially registered , the role of the TITF changes . The temporary bank account is transformed into a regular business account. At this stage, the board of directors can officially appoint a regular Chief Financial Officer to oversee the firm’s finances .
Conclusion
Managing the details of a treasurer in trust Philippines incorporation is a mandatory step of doing business in the Philippines. By making sure that the treasurer is a qualified treasurer in trust philippines incorporation person and that the TITF deposit is correctly established, entrepreneurs can successfully satisfy the SEC process and begin their business operations .