Setting up a domestic corporation in the Philippines necessitates strict compliance to the Revised Corporation Code . A primary first phases is appointing a treasurer in trust . This individual plays a crucial function in securing the paid-up investment before the official approval of the Certificate of Incorporation .
Understanding the Treasurer in Trust?
In essence , a treasurer in trust is a designated representative tasked to collect and manage the subscription payments of the proposed corporation . According to the current laws , each stock corporation should nominate someone to act in this capacity .
Key Requirements
To serve as a treasurer in trust , certain conditions must be met :
Local Address: The individual needs to be a legal inhabitant of the country.
Integrity: They act as a fiduciary , meaning they are legally responsible for the capital.
Paperwork: A sworn Affidavit of Treasurer-in-Trust shall be submitted alongside the registration papers.
The Treasurer-in-Trust Bank Account
Prior to filing documents to the SEC , the TITF is treasurer in trust philippines incorporation required to establish a TITF bank account .
Deposit Funding: The founders transfer the minimum equity into this facility.
Bank Certificate : The treasurer in trust philippines incorporation bank issues a proof of funds confirming that the capital is held in trust for the future entity.
Withdrawal Restrictions : These deposits are typically frozen until the government issues the incorporation .
Importance of Correct Handling in Registration
Omitting to correctly handle the treasurer in trust Philippines incorporation can result in legal issues. The SEC carefully checks the financial disclosures to ensure that the money truly treasurer in trust philippines incorporation 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 board of directors will formally appoint a regular Treasurer who will manage the firm’s finances .
Final Thoughts
Navigating the legalities of a treasurer in trust Philippines incorporation is a mandatory step of starting a venture in treasurer in trust philippines incorporation the country . By guaranteeing that the appointee is a qualified person and that the TITF deposit is correctly established, investors can effectively move through the SEC treasurer in trust philippines incorporation process and focus on their commercial activities.