Setting up a new company in the Philippines requires careful compliance 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 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 hold the paid-up capital of the upcoming company. According to the current laws , every new business should declare a resident to act in this capacity .
Essential Qualifications
To act as a treasurer in trust , several legal standards apply :
Local Address: The treasurer must be a legal inhabitant of the Philippines .
Integrity: They serve as a fiduciary , suggesting they are strictly responsible for the capital.
Documentation : A sworn Affidavit of Treasurer-in-Trust must be filed alongside the registration papers.
The TITF Bank Account
Prior to filing applications to the SEC , the TITF needs to set up a TITF bank account .
Capital Funding: The incorporators pay the minimum equity into this account .
Proof of Deposit: treasurer in trust philippines incorporation The bank generates a Certificate of Deposit verifying that the capital is secured for the proposed entity.
Fund Locking: These funds are generally restricted until such time the SEC issues the business permit.
Why Correct Handling in Registration
Omitting to properly treasurer in trust philippines incorporation manage the treasurer in trust Philippines incorporation can cause legal issues. The SEC meticulously reviews the financial disclosures to ensure treasurer in trust philippines incorporation that the capital physically exists in a local bank .
After Approval to a Regular Treasurer
After the company is officially treasurer in trust philippines incorporation registered , the role of the TITF evolves . The temporary bank account is treasurer in trust philippines incorporation 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 legalities of a treasurer in trust is a non-negotiable part 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 successfully move through the SEC process and start their business operations .