Setting up a domestic corporation in the Republic of the Philippines involves precise adherence to the SEC regulations . A primary first requirements is designating a Treasurer-in-Trust. The appointee acts a vital role in handling the initial capital ahead of the formal issuance of the SEC registration.
Defining the Treasurer in Trust?
Simply put, a treasurer in trust is a designated representative tasked to collect and manage the subscription payments of the nascent company. Per the SEC guidelines , each stock corporation must appoint a resident to serve in this position.
Mandatory Requirements
To act as a TITF, specific qualifications must be met :
Residency : The individual needs to be a legal inhabitant of the Philippines .
Trustworthiness : They serve as a guardian , implying they are legally responsible for the capital.
Paperwork: A notarized Treasurer’s Affidavit will be filed alongside the Articles of Incorporation .
The Treasurer-in-Trust Bank Account
Prior to filing documents to the Commission, treasurer in trust philippines incorporation the treasurer in trust must set up a TITF bank account .
Deposit Funding: The incorporators pay the required paid-up capital into treasurer in trust philippines incorporation this facility.
Proof of Deposit: The bank generates a proof of funds stating that the money is secured for the treasurer in trust philippines incorporation proposed entity.
Withdrawal Restrictions : These deposits are typically restricted until such time the SEC approves the business permit.
Why Correct Handling treasurer in trust philippines incorporation in Registration
Failing to correctly handle the treasurer in trust process can cause delays . The Securities and Exchange Commission carefully checks the Treasurer’s Affidavit to ensure that the money actually is available in a local bank .
After Approval to a Regular Treasurer
After the corporation receives its SEC certificate, the role of the TITF evolves . The trust account treasurer in trust philippines incorporation is transformed into a regular business account. At this stage, the board of directors will formally confirm a permanent Chief Financial Officer to oversee the firm’s finances .
Final Thoughts
Handling the legalities of a treasurer in trust Philippines incorporation is a mandatory step of starting a venture in the country . By making sure that the treasurer is a resident and that the bank account is correctly established, entrepreneurs can effectively move through the SEC process and focus on their business operations .