Being in business in Singapore is associated with numerous roles, including legal and regulatory requirements of which companies must comply to remain legal. Among the key functions of company administration is the provision of company secretarial services. Where most businessmen will associate the term secretary to administrative duties such as attendance of phone calls or supervision of other schedules, company secretarial services go far beyond that. They carry an indispensable role in ensuring that companies observe proper corporate governance in Singapore as they observe all the applicable legal requirements.
With this article, we shall discuss the services being offered by corporate secretarial service providers and how outsourcing them can save a business owner some time and can eventually reduce compliance risks.
What Are Company Secretarial Services?
Company secretarial services comprise a wide array of compliance and company administration duties that ensure companies operate within the prescribed framework of Singapore’s Companies Act. To the incorporated firms in Singapore, company secretaries are inevitable. A company secretary is particularly tasked to maintain statutory registers, prepare and file certain documents and keep the company in good standing among its other legal obligations.
Key Service Products of Corporate Secretarial Service Providers
- Company Incorporation: The first step in establishing a business in Singapore is through the process of company incorporation. Corporate secretarial service providers can help in completing this process by drafting and submitting incorporation documents to the Accounting and Corporate Regulatory Authority (ACRA). They ensure that the constitution and other legal documents of the company are accurate according to the law, thereby making the incorporation process problem-free.
- Keeping Statutory Registers: Once a company is registered, it needs to keep statutory registers: the register of members, directors, and shareholders. Some corporate secretarial service companies make sure that such registers remain updated and compliant with the relevant laws, thus saving a company from potential penalties.
- Annual Returns Filing: In Singapore, companies are required to file returns with ACRA annually for continued compliance. These returns consist of a snapshot of the health and status of the company. Corporate governance advisory will prepare and lodge documents as necessary on behalf of the client so that deadlines are met and information submitted is correct.
- Corporate Governance Advisory: Corporate governance is essential to business sustainability. Secretarial service providers offer advisory best practice and compliance work that ensures businessmen are updated with governance policies. In this regard, it includes monitoring board meetings, recording minutes, and advising the directors on their fiduciary duties.
- Registered Office Address Services: Singapore companies are required to have a registered office address. Corporate secretarial service providers will often provide a registered office which companies can use as their official office when dealing with the relevant bodies. This may be very beneficial for small businesses and foreign companies that do not necessarily have an office in Singapore.
- Company Form Amendment: All changes, even the appointment and removal of directors, change in a company’s registered office, or changes to shareholding, must be registered in due course and notified to ACRA. Corporate secretarial services handle all such changes, ensuring compliance and that they are timely reported.
- Ad-hoc Compliance Services: Apart from the routine activities, an enterprise at certain instances may face issues related to some specific compliances. Corporate secretarial services providers can help manage such ad-hoc compliances, for example, industry specific regulations or notices issued by the regulatory bodies.
Advantages of outsourced Company Secretarial Service
Consequently, many business companies, most especially SMEs, would find it difficult to manage all these compliance tasks in-house. Again, this is where company secretarial outsourcing may offer enormous benefits. Quite a number of the critical benefits apply as follows:
1. Time and Resource Savings
Business persons will be able to focus on core company activities such as increasing sales, marketing, and expansion and not waste time in compliance-related work. Corporate secretarial service providers are experts with a deep understanding of Singapore’s regulation; hence they can do tasks much more efficiently. For small businesses without an available budget for an in-house full-time corporate secretary, outsourcing this kind of service is a good cost-effective solution.
2. Reduction of Compliance Risk
Singapore has a strict regulatory framework that includes fines for non-compliance, sometimes even dissolving the company. Outsourcing corporate secretarial services ensures that the matters regarding compliance are handled by professionals. Professionals keep track of deadlines and reporting requirements among other legal requirements, so it is unlikely that there will be any mistake or omission that might attract penalties.
3. Professional Governance Advisory
Corporate governance is a thing of great importance to a company’s reputation and its success in the long term. Outsourced corporate secretarial service providers offer best practice advice on corporate governance, thus ensuring that the company keeps a good standard with the various stakeholders, investors, and regulators. This advice ensures that business remains at an excellent position that can withstand any change in the governing standards.
4. Scalability
The more the company expands and grows, the more complexity it may incur in terms of compliance. Corporate secretarial service providers are able to scale up their service delivery as according to the needs of the company. Be it expanding its operations, bringing in new shareholders, or restructuring, such alterations can be effectively managed through a corporate secretary.
5. Cost-Effectiveness
Hiring of a full-time in-house corporate secretary is also expensive, particularly for SMEs. This is because external vendors allow a business to acquire professional skills at a much lower cost. This option is very flexible and cost-effective since only certain services needed would be paid for.
Conclusion
Company secretary services form the core of helpful services in meeting and ensuring good corporate governance in businesses, all in respect to regulatory requirements. These services include company incorporation, maintenance of statutory registers, filing of annual returns, advising on governance, among others, designed to ensure businesses stay compliant with the legal framework under which Singapore operates.
Outsourcing corporate secretarial services saves time and resources, avoiding the risk of errors in compliance and penalties. For the business owner interested in streamlining one’s administrative burdens and focusing on growing the company, hiring a corporate secretarial service provider like Entrust has been a prudent investment.
