Setting up a domestic corporation in the Philippines requires precise compliance to the SEC regulations . One of the starting requirements is appointing a Treasurer-in-Trust. This person plays a fundamental role in securing the initial investment prior to the formal approval of the SEC registration.
Understanding the Treasurer in Trust?
Simply put, a treasurer in trust is a temporary officer tasked to accept and manage the initial deposits of the upcoming corporation . Under the SEC guidelines , all stock corporation should appoint someone to serve in this position.
Mandatory Criteria
To serve as a TITF, certain qualifications are necessary:
Residency : The appointee should be a legal inhabitant of the Philippines .
Trustworthiness : They serve as a trustee, meaning they are strictly liable for the capital.
Documentation : A notarized Affidavit of Treasurer-in-Trust will be submitted alongside the registration papers.
The Treasurer-in-Trust Bank Account
Prior to submitting documents to the Commission, the TITF is required to open a treasurer in trust philippines incorporation Treasurer in Trust For (TITF) bank account .
Capital Funding: The founders pay the minimum paid-up capital into this account .
Bank Certificate : The financial institution generates a proof of funds verifying that the money is held in trust for the proposed corporation .
Withdrawal Restrictions : treasurer in trust philippines incorporation These funds are typically frozen until such time the government issues the business permit.
Importance of Correct Handling in Incorporation
Omitting to correctly document the treasurer in trust process can result in delays . The SEC carefully reviews the Treasurer’s Affidavit to ensure that the capital actually exists in a Philippine bank.
After Approval to a Full Treasurer
When the company receives its SEC certificate, the role of the treasurer in trust evolves . The temporary account is upgraded into a standard business account. At this stage, the board of directors can formally confirm a regular Chief Financial Officer to manage treasurer in trust philippines incorporation 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 treasurer in trust philippines incorporation a resident and that the bank deposit is correctly established, investors can effectively complete the SEC process and begin their treasurer in trust philippines incorporation business operations .