Setting up a new company in the Republic of the Philippines involves careful adherence to the Revised Corporation Code . A primary initial phases is designating a Treasurer-in-Trust. This person acts a vital role in managing the initial funds before the official approval of the Certificate of Incorporation .
Defining the Treasurer in Trust?
In essence , a treasurer in trust is a temporary officer tasked to accept and hold the paid-up capital of the upcoming corporation . According to the Philippine regulations, all stock corporation must appoint someone to act in this position.
Mandatory Requirements
For one to serve as a treasurer in trust , several qualifications must be met :
Local Address: The treasurer must be a legal inhabitant of the Philippines .
Integrity: They serve as a fiduciary , suggesting they are strictly responsible for the capital.
Documentation : A sworn Treasurer’s Affidavit must be treasurer in trust philippines incorporation filed alongside the registration papers.
The TITF Bank Account
Prior to filing applications to the Commission, the treasurer in trust needs to open a temporary corporate bank account .
Capital Placement : The founders deposit the required paid-up capital into this facility.
Bank Certificate : The financial institution issues a proof of funds confirming that the money is held in trust for the future corporation .
Fund Locking: These funds are typically restricted until such time the government issues the business permit.
Why Correct Handling in Registration
Neglecting to properly manage the treasurer in trust Philippines incorporation can cause delays . The SEC meticulously reviews the financial disclosures to ensure that the money physically treasurer in trust philippines incorporation exists in a Philippine bank.
After Approval to a Regular Treasurer
When the corporation is officially registered , the status of the treasurer in trust changes . The trust account is transformed into a standard corporate bank account . At this point , the company leadership can formally confirm a regular Treasurer who will oversee the treasurer in trust philippines incorporation company’s finances .
Final Thoughts
Navigating the details of a treasurer in trust is a non-negotiable step of starting a venture in treasurer in trust philippines incorporation the Philippines. By ensuring that the appointee is a qualified person and that treasurer in trust philippines incorporation the bank account is correctly established, investors can successfully complete the registration process and focus on their business operations .