Establishing a domestic corporation in the Philippines involves strict compliance to the SEC regulations . One of the first steps is designating a treasurer in trust . The appointee plays a fundamental function in managing the initial investment ahead of the official approval of the SEC registration.
What is the Treasurer in Trust?
In essence , a treasurer in trust Philippines incorporation is a designated officer empowered to collect and hold the initial deposits of the nascent company. According to the SEC guidelines , all new business must nominate someone to serve in this position.
Essential Criteria
In order to act as a TITF, certain conditions apply :
Local Address: The individual needs to be a legal inhabitant of the country.
Integrity: They serve as a trustee, meaning they are legally responsible for the funds .
Paperwork: A notarized Affidavit of Treasurer-in-Trust will be filed with the registration papers.
The Treasurer-in-Trust Bank Account
Prior to filing documents to the SEC , the treasurer in trust needs to open a Treasurer in Trust For (TITF) deposit account.
Capital Placement : The incorporators pay the required equity into this facility.
Proof of Deposit: The financial institution provides a proof of funds treasurer in trust philippines incorporation confirming that the capital is held in trust for the future entity.
Fund Locking: These deposits are typically locked until such time the government issues the incorporation .
Why Correct Handling in Incorporation
Failing to properly document the treasurer in trust process can cause delays . The Securities and Exchange treasurer in trust philippines incorporation Commission meticulously examines the Treasurer’s Affidavit to ensure that the money truly exists in a Philippine bank.
Transitioning to a treasurer in trust philippines incorporation Regular Treasurer
After the corporation receives its SEC treasurer in trust philippines incorporation certificate, the status of the TITF shifts. The temporary bank account is transformed into a standard corporate bank account . At this stage, the company leadership can treasurer in trust philippines incorporation officially appoint a regular Treasurer to oversee the company’s finances .
Final Thoughts
Navigating the details of a treasurer in trust is a mandatory step of starting a venture in the Philippines. By ensuring that the treasurer is a resident and that the bank account is properly set up , investors can effectively move through the registration requirements and focus on their commercial activities.