Launching a domestic corporation in the Philippines involves precise compliance to the Revised Corporation Code . One of the starting requirements is designating a Treasurer-in-Trust. This person plays a fundamental function in handling the paid-up investment prior to the official approval of the Certificate of Incorporation .
Defining the Treasurer in Trust?
In essence , a treasurer in trust Philippines incorporation is a designated officer tasked to collect and safeguard the initial deposits of the proposed corporation . Under the SEC guidelines , each stock corporation must appoint someone to act in this position.
Mandatory Requirements
In order to serve as a TITF, specific conditions apply :
Residency : The individual must be a legal inhabitant of the Philippines .
Integrity: They act as a guardian , meaning they are personally responsible for the capital.
Documentation : A sworn Affidavit of Treasurer-in-Trust must be filed with the Articles of Incorporation .
The Treasurer-in-Trust Bank Account
Before sending documents to the Commission, the treasurer in trust is required to establish a temporary corporate bank account .
Capital Funding: The incorporators transfer the minimum equity into this facility.
Proof of Deposit: The financial institution treasurer in trust philippines incorporation issues a proof of funds verifying that the capital is held in trust for the future corporation .
Withdrawal Restrictions : These funds are typically restricted until the treasurer in trust philippines incorporation government approves the incorporation .
Why Correct Handling in Incorporation
Failing to properly manage the treasurer in trust philippines incorporation treasurer in trust Philippines incorporation can cause legal issues. The SEC carefully examines the financial treasurer in trust philippines incorporation disclosures to confirm that the capital truly is available in a local bank .
Transitioning to a Regular Treasurer
After the company receives its SEC certificate, the status of the TITF evolves . The temporary bank account is transformed into a standard business account. At this point , the board of directors can formally appoint a permanent Treasurer to manage the company’s fiscal operations.
Final Thoughts
Navigating the nuances of a treasurer in trust Philippines incorporation is a critical step of doing business in the country . By ensuring treasurer in trust philippines incorporation that the appointee is a resident and that the TITF account is correctly set up , entrepreneurs can successfully move through the registration requirements and focus on their commercial activities.