Setting up a new company in the Philippines requires careful compliance to the Revised Corporation Code . An essential starting requirements is designating a TITF . This individual plays a fundamental function in managing the starting capital ahead of the formal approval of the Certificate of Incorporation .
What is the Treasurer in Trust?
Simply put, a treasurer in trust is a provisional officer tasked to accept and safeguard the paid-up capital of the upcoming company. According to the current laws , all stock corporation must appoint a resident to act in this position.
Mandatory Requirements
For one to act as a treasurer in trust , several qualifications must be met :
Local Address: The treasurer must be a legal inhabitant of the Philippines .
Integrity: They act as a fiduciary , suggesting they are strictly liable for the capital.
Documentation : A sworn Treasurer’s Affidavit must be 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 stating that the treasurer in trust philippines incorporation money is held in trust for the future corporation .
Fund Locking: These deposits are typically locked until the government approves the business permit.
Why Correct Handling in Incorporation
Neglecting to correctly handle the treasurer in trust process can lead to legal issues. treasurer in trust philippines incorporation The SEC strictly checks the Treasurer’s Affidavit to confirm that the capital truly is available in a local bank .
After treasurer in trust philippines incorporation Approval to a Regular Treasurer
After the company is officially registered , the role of the TITF evolves . The treasurer in trust philippines incorporation temporary bank account is converted into a regular business account. At this point , the board of directors will formally appoint a regular Chief Financial Officer to manage the firm’s finances .
Summary
Managing the nuances of a treasurer in trust Philippines incorporation is a mandatory part of treasurer in trust philippines incorporation doing business in the country . By guaranteeing that the treasurer is a resident and that the TITF deposit is properly set up , entrepreneurs can effectively satisfy the SEC requirements and begin their commercial activities.