Establishing a new company in the Republic of the Philippines involves strict adherence to the Revised Corporation Code . An essential first steps is naming a TITF . This individual acts a crucial function in managing the initial funds before the formal approval of the SEC registration.
What is the Treasurer in Trust?
In essence , a treasurer in trust Philippines incorporation is a designated officer tasked to receive and manage the paid-up capital of the upcoming corporation . Per the current laws , each stock corporation should appoint someone to serve in this position.
Key Criteria
To act as a TITF, certain qualifications are necessary:
Residency : The treasurer needs to be a resident of the Philippines .
Integrity: They serve as a fiduciary , implying they are personally responsible for the funds .
Paperwork: A sworn Treasurer’s Affidavit shall be filed with the Articles of Incorporation .
The TITF Bank Account
Prior to sending applications to the SEC , the treasurer in trust needs to treasurer in trust philippines incorporation set up a Treasurer in Trust For (TITF) bank account .
Deposit Placement : The founders pay the required equity into this account .
Bank Certificate : The bank provides a proof of funds confirming that the treasurer in trust philippines incorporation money is secured for the future entity.
Fund Locking: These deposits are usually restricted until the SEC issues the incorporation .
Why Correct Handling in Incorporation
Neglecting to correctly manage the treasurer in trust process treasurer in trust philippines incorporation can result in legal issues. The Securities and Exchange Commission meticulously checks the Treasurer’s Affidavit to ensure that the capital treasurer in trust philippines incorporation physically is available in a Philippine bank.
After Approval to a Full Treasurer
After the treasurer in trust philippines incorporation corporation is officially registered , the role of the treasurer in trust evolves . The temporary bank account is upgraded into a standard business account. At this point , the board of directors can formally confirm a regular Chief Financial Officer to manage the company’s fiscal operations.
Final Thoughts
Managing the details of a treasurer in trust Philippines incorporation is a non-negotiable step of starting a venture in the Philippines. By making sure that the appointee is a resident and that the bank deposit is correctly set up , investors can effectively complete the SEC process and begin their business operations .