There is a high demand for company or corporate secretary services in Singapore due to their importance in the corporate world. The reason due to ACRA (Accounting and Corporate Regulatory Authority) stipulates that every company must appoint a corporate secretary within 6 months of its incorporation. If this position remains vacant for more than six months, there may be an up to $1,000 penalty fee; therefore, it is better to appoint one sooner rather than later. As a good corporate secretary will ensure a business's smooth running, which is beneficial for the internal and external running of the organization. But what is the role of a "corporate secretary"?
A corporate secretary does not have a statutory definition of their role, duties, or responsibilities, but they are generally responsible for reporting and administrative duties. Therefore, the corporate secretary is responsible for assisting the directors in ensuring that all required regulatory requirements are met. The corporate secretary is an officer who is not merely administrative but also advisory in nature, especially in corporate governance matters and boardroom procedures. In short, a corporate secretary ensures that:
All the legalities regarding a business are complied with.
The company complies with its obligations under the Companies Act and other relevant laws.
The business is registered properly with the Registrar of Companies and the annual returns are filed on time.
The shareholders' rights and interests are taken care of.
If the corporate secretary fails to perform his duties properly, it can lead to big problems. The company could face legal issues; in extreme cases, it may lose its license and be fined. An ineffective corporate secretary can also harm the reputation of the company and its employees. When there is only one company director, he can't be the secretary. In the case of multiple directors, one can act as both the secretary and the director.
But is it better to appoint an internal company secretary or outsource a corporate secretary service? This is why we have compiled these reasons why you should consider working with a corporate secretarial service in Singapore today.
5 Reasons To Outsource a Corporate Secretary in Singapore
1. Peace of mind
When you outsource to hire a corporate secretary, you are also hiring because of their expertise. There are already so many things to handle; therefore, is it best to leave administrative handling to qualified and experienced professionals.
You will also have fewer things to manage because of the assurance and sense of reliability that they give you. You can trust them to meet all your requirements without worry as they will always have solutions to your problems and your best interest at heart.
Additionally, you won't have to worry about errors (or about being a strike off company in Singapore) since they are accurate and consistent - leaving you more room to focus on what really matters
2. Cost-effective
Outsourcing also saves time and money on hiring and training an in-house team without compromising quality. You can leave them to do the heavy paper-lifting without spending on space and equipment like workstations and other hardware costs (fax machines, computers, printers, and other IT peripherals).
Yes, although there are corporate secretarial services fees to think about, your company can use these additional savings to improve other revenue-generating areas.
3. Reduce risk factors
An outsourcing company has an expert team to complete the work within the allocated timeframe. The team ensures compliance with all legal requirements and reduces penalties and other potential monetary losses.
4. Keeping Your Good Reputation
By hiring a corporate secretary, you avoid financial penalties and maintain a good public image and reputation for your business. It would be worthwhile to remain in the good books of ACRA and IRAS (regulators) and avoid fines, penalties, or unnecessary media chaos. Furthermore, they could act as an advisor, especially when the business is expanding, so you can see potential paper roadblocks ahead and remain in compliance with the law.
5. Leverage their expertise
An outsourced corporate secretary can provide a wealth of knowledge and experience to help your business run smoothly. They can help with everything from compliance to shareholders' communication and can provide invaluable guidance on best practices. With an outsourced corporate secretary, you can be confident that you have access to the latest information and insights, which can help you make better decisions for your business.
Qualification When Looking for Corporate Secretarial Services Singapore
A corporate secretary is a professional who thoroughly understands company laws and regulations. This is important because they are responsible for ensuring that your company operates within the law and regulations. What are some qualifications to look for when choosing an outsource a corporate secretary in Singapore (besides being a Singaporean resident)?
As per ACRA, a Singapore corporate secretary should meet at least one of the following requirements, as per section 171 (1AA) of the Companies Act:
Have at least 3 to 5 years of experience before their appointment
A qualified person under the Legal Profession Act (CAP. 161)
Public accountant registered under Accountant Act (CAP.2)
This person also must be a public accountant or a member of any of the following:
Member of the Institute of Certified Public Accountants of Singapore
Member of the Singapore Association of the Institute of Charted Secretaries and Administrators
Member of the Association of International Accountants (Singapore Branch)
Member of the Institute of Company Accountants, Singapore
What is the difference between a corporate secretary and a director?
Though there may be some similarities, and if you are still confused about the different roles, here's a summarized explanation. Company directors are responsible for ensuring the company is operating at its peak and achieving its goals. The director must ensure the company is not losing money or making a loss. This is because the directors are responsible for the company's performance and success.
The duties of a corporate secretary are to ensure the company complies with all statutory and regulatory policies to help the directors achieve their goals. The corporate secretary is also responsible for ensuring the company complies with the corporate governance requirements. Their tasks include ensuring that the company complies with corporate governance requirements, an effective board of directors, and compliance with market regulations.
Factors to Consider When Hiring a Corporate Secretary
It's clear that hiring the right corporate secretary is vital for organizational growth. But what are the factors to look out for during the selection process? Here are some things to look out for. They must be:
1. Familiar with Singapore Company Law
Since the corporate secretary is responsible for ensuring a company complies with all legal rules and regulations, they must be very familiar with the rules ACRA sets and the requirements a company must fulfill to renew its registration. To effectively handle and manage such responsibilities independently, they must already possess knowledge and experience in handling such responsibilities.
2. Have the Right Qualification and Experience
Knowledge of the law is one thing, but they also need to get things done promptly. No more headaches of late penalties or noncompliances anymore, as they would be able to manage it and provide solutions to issues at hand.
3. Able to Communicate Well
In addition to dealing with stakeholders and directors, the corporate secretary will also deal with others. Therefore, they need to have excellent communication skills. They also help directors, shareholders, and top management understand their statutory obligations to make informed decisions.
4. Strong Organization Skills
A corporate secretary in Singapore is responsible for various administrative duties. Among their responsibilities will be filing taxes and annual reports. They will also be entrusted with filing matters, making them an invaluable bookkeeper for the company. Organizational skills will be crucial to ensure productivity.
5. Financial Management Skills
For a business to achieve financial efficiency, the corporate secretary must possess adequate financial management skills. Therefore, most of the time, corporate secretaries in Singapore with accounting skills are preferred for this job.
Look No Further For Corporate Secretary Services Singapore
Ultimately, corporate secretaries are an invaluable benefit and can save you a lot of time, money, and headaches regarding paperwork. Instead of hiring in-house, outsourcing a corporate secretary can be a great solution for a company that does wish to spend resources to hire a full-time employee to handle these tasks.
Get a free quotation for corporate secretary service and see how we can help you with the right corporate secretary services to eliminate your secretarial headaches today.