Setting up a domestic corporation in the Philippines necessitates careful adherence to the Revised Corporation Code . One of the starting phases is designating a TITF . This person plays a vital function in securing the starting capital before 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 hold the paid-up capital of the upcoming corporation . According to the current laws , all stock corporation must appoint someone to act in this position.
Mandatory Requirements
For one to act as a treasurer in trust , several qualifications apply :
Residency : The individual should be a resident of the country.
Trustworthiness : They serve as a guardian , suggesting they are strictly responsible for the capital.
Documentation : A sworn Affidavit of Treasurer-in-Trust must be filed alongside the registration papers.
The treasurer in trust philippines incorporation TITF Bank Account
Prior to filing applications to the SEC , the TITF needs to set up a TITF bank account .
Capital Placement : The founders deposit the required equity into this account .
Proof of Deposit: The bank generates a Certificate of Deposit verifying that the capital is secured for the proposed entity.
Withdrawal treasurer in trust philippines incorporation Restrictions : These deposits are generally frozen until such time the SEC grants the incorporation .
Importance of Correct Handling in Registration
Omitting to properly manage treasurer in trust philippines incorporation the treasurer in trust Philippines incorporation can cause legal issues. The SEC meticulously reviews treasurer in trust philippines incorporation the financial disclosures to ensure that the capital physically exists in a local bank treasurer in trust philippines incorporation .
After Approval to a Regular Treasurer
After the company is officially registered , the role of the TITF evolves . The temporary bank account is converted into a regular business account. At this stage, the board of directors may officially appoint a permanent Chief Financial Officer who will manage the company’s fiscal operations.
Conclusion
Handling 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 set up , investors can efficiently move through the SEC process and start their commercial activities.