Setting up a new company in the Philippines involves precise compliance to the legal framework. An essential first steps is appointing a treasurer in trust . This individual acts a fundamental function in handling the initial investment prior to the official approval of the SEC registration.
Defining the Treasurer in Trust?
In essence , a treasurer in trust Philippines incorporation is a temporary representative empowered to accept and hold the subscription payments of the nascent corporation . According to the Philippine regulations, each stock corporation is required to nominate someone to serve in this position.
Key Criteria
In order to serve as a TITF, specific qualifications apply :
Residency : The appointee must be a resident of the Philippines .
Trustworthiness : They serve as a trustee, suggesting they are personally liable for the capital.
Paperwork: A notarized Treasurer’s Affidavit must be filed with the Articles of Incorporation .
The TITF Bank Account
Prior to filing documents to the Commission, the TITF needs to open a temporary corporate deposit account.
Deposit Funding: The incorporators deposit the required paid-up capital into this account .
Proof of Deposit: The bank issues a proof of funds confirming that the capital is secured for the future entity.
Fund Locking: These deposits are usually frozen until the SEC grants the incorporation .
treasurer in trust philippines incorporation Importance of Accuracy in Incorporation
Failing to properly document the treasurer in trust Philippines incorporation can result in rejection . The treasurer in trust philippines incorporation Securities and Exchange Commission carefully examines the Treasurer’s Affidavit to verify that the treasurer in trust philippines incorporation money actually is available in a Philippine bank.
Transitioning to a Regular Treasurer
After the treasurer in trust philippines incorporation company is officially registered , the status of the TITF evolves . The trust bank account is converted into a standard business account. At this point , the company leadership will formally appoint a regular Treasurer to oversee the firm’s finances .
Final Thoughts
Navigating the details of a treasurer in trust is a non-negotiable step of starting a venture in the Philippines. By ensuring that the appointee is a qualified person and that the bank account is correctly treasurer in trust philippines incorporation established, entrepreneurs can efficiently move through the registration process and begin their commercial activities.