Establishing a business entity in the Republic of the Philippines involves strict adherence to the Revised Corporation Code . An essential initial phases is naming a TITF . This person serves a vital function in securing the starting funds before the formal issuance of the Certificate of Incorporation .
What is the Treasurer in Trust?
Simply put, a treasurer in trust is a designated officer authorized to collect and safeguard the initial deposits of the proposed company. Per the SEC guidelines , every new business should declare a resident to serve in this capacity .
Essential Qualifications
To act as a TITF, certain legal standards apply :
Residency : The individual should be a resident of the country.
Trustworthiness : They serve as a guardian , meaning they are personally accountable for the capital.
Documentation : A notarized Affidavit of Treasurer-in-Trust shall be filed alongside the Articles of Incorporation .
The Treasurer-in-Trust Bank Account
Before sending documents to the Commission, the treasurer in trust is required to establish a Treasurer in Trust For (TITF) deposit account.
Deposit Funding: The incorporators transfer the minimum equity into this account .
Proof of Deposit: The treasurer in trust philippines incorporation bank provides a Certificate of Deposit confirming that the capital is secured for the proposed entity.
Fund Locking: These funds are generally frozen until such time the SEC grants the incorporation .
Importance of Correct treasurer in trust philippines incorporation Handling in Registration
Omitting to properly document the treasurer in trust Philippines incorporation can result in delays . The Securities and Exchange Commission carefully examines the treasurer in trust philippines incorporation Treasurer’s Affidavit to verify that the money actually is available in a local bank .
Transitioning to a Full Treasurer
Once the corporation receives its SEC certificate, the role of the treasurer in trust shifts. The temporary bank account is upgraded into a regular business account. At this stage, the board treasurer in trust philippines incorporation of directors may officially appoint a permanent Chief Financial Officer to manage the firm’s finances .
Summary
Managing treasurer in trust philippines incorporation the nuances of a treasurer in trust Philippines incorporation is a mandatory part of doing business in the country . By guaranteeing that the appointee is a resident and that the TITF deposit is properly set up , entrepreneurs can efficiently satisfy the SEC requirements and begin their commercial activities.