You’ll have to deal with a bank even before you’ve incorporated. So you and your friends have decided to go the corporation route for your startup? Part of the SEC Requirements is to open a Treasurer in Trust For (TITF) Account.
Let’s talk about your new corporation; and I’ll give illustrative amounts. The authorized capital stock which is the ceiling amount for the capital that can be invested in the company is P1 million. The Corporation Code requires that 25% of the authorized capital stock is subscribed and 25% of the subscribed capital is paid-up. Did I lose you?
So, we’re talking about the P1 million right? You and your fellow incorporators (5 to 15 incorporators are allowed) subscribe or promise to invest at least P250,000 (25% of the P1 million).
If you guys don’t have that amount yet, that’s okay. You can start with P62,500 (25% of P250,000) cash. It’s really just easier to use cash, because if you guys invest property (like a car, or a computer, or furniture) there’s a lot more documentation needed. You don’t wanna go there.
To open the TITF account you’ll need:
- P62,500 cash investment
- Notarized Treasurer’s Affidavit (From SEC Online Registration)
- Completely signed and Notarized Articles of Incorporation and By Laws (From SEC Online Registration)
- Two valid IDs of the Treasurer and ID photos
- Roster of Officers - certified by the Secretary
- Board of Directors - certified by the Secretary
- List of Stockholders - certified by the Secretary
Requirements may vary from bank to bank. Call the branch to verify the requirements, speak in English — DON’T walk in to inquire. We did ours with BDO Bagtikan and it was the biggest hassle.
Be sure that when you fill out the Treasurer’s Affidavit form, you specify the bank name and branch. Check the amount and of course the treasurer’s name and notarize.
So they open your TITF account and you get a passbook. The amount is on hold until you submit a copy of your Certificate of Registration given by the SEC. You pay around P100 to P300 for a Certificate indicating that you have P62,500 in a TITF account at their branch. You have to notarize this paper too. You bring this together with your other SEC registration papers to Greenhills.
Once you get your SEC Certificate of Registration — it’s green and there’s a gold seal, make about 20 copies. You’ll submit one copy to the bank so you can close your TITF account and open your real business checking/savings account. You can do that in the same bank or somewhere else, but be sure to keep the P62,500 intact.
Next, we’ll talk about how to open your real business account.
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