Before registering your
company in Singapore, you need to ensure that it abides by the current legal
requirements stated in the Singapore Companies Act. Among these is the need to
appoint a company secretary within the first six months of your incorporation.
Legal Requirements of Having a Corporate
Secretary
According to the act, the
guidelines for hiring a corporate secretary vary depending on the nature of the
business. For public companies, corporate secretaries must have 3 to 5 years of
prior experience before being officially appointed in the organisation. In
addition, they should meet the specific criteria that involve knowledge and
practice in legal aspects as the position often involves constant government
involvement. Because of their nature of work, corporate secretaries for public
companies generally work full-time and in-house.
On the other hand,
corporate secretaries for private companies don’t follow such strict
guidelines. To offer corporate secretary services for private companies,
prospective applicants need to meet the minimum requirements. That is, they
need to be a permanent resident of the country and be of legal age.
Responsibilities of the Corporate Secretary
Besides being a legal
requirement, corporate secretaries are necessary for every company because they
handle financial, administrative, and
operational matters.
● Financial
responsibilities
Corporate
secretaries manage the company's insurance covers and prepare account
statements. They are also responsible for ensuring that the company remains tax
compliant by paying and filing on time to prevent unnecessary penalties.
● Administrative
responsibilities
Some
of their core administrative functions include scheduling and organising board
meetings, arranging annual general meetings as mandated by the Companies Act,
and coordinating with the shareholders regarding share allotments, transfers,
and other issues. What’s more, corporate secretaries are also responsible for
maintaining corporate governance practices and protecting company identity.
● Operational
responsibilities
In
terms of their operational responsibilities, they must supervise daily
activities and ensure that everything complies with ACRA's statutory
guidelines. Likewise, corporate secretaries are required to update company
information should there be any rebranding initiative that requires
modification in the name, nature of work, address, and list of shareholders.
With this and more, it's
clear how a corporate secretary plays an integral role in several business
aspects. For this reason, company secretarial services are not only necessary
but also beneficial.
Different Ways Companies Fill the Corporate
Secretarial Position
There are three ways to
obtain corporate secretarial services in Singapore. This includes:
● Hiring
full-time in-house secretary
The
most traditional approach is hiring a full-time secretary who will work for
your company exclusively. However, while it has its own advantages, hiring an
in-house secretary may be more costly in the long run. That's why some
companies prefer to look for other alternatives.
● DIY corporate secretary
Another
option is to do it yourself. This means you appoint a qualified member of your
company to take on the role of a corporate secretary. Some of the benefits of
following this method include saving on annual fees and keeping all
transactions internally.
When
you choose to DIY your corporate secretary, you don't have to worry about being
charged extra for getting secretarial services. Moreover, it helps keep all
files and documents within the company as there is no need to share
confidential information with external firms.
However,
because an individual is expected to hold two positions simultaneously, there
is a higher probability of making costly errors. If not for lack of
concentration and focus, DIY secretaries can make mistakes if they have limited
field experience.
● Outsourcing
corporate secretarial services Singapore
The
last option is to outsource services from corporate firms on a renewable
short-term basis. This gives companies access to experts at affordable prices.
Moreover, outsourcing is the most flexible and customisable option to ensure
all companies get the services they need.
Among these three options, most established and emerging corporations
prefer outsourcing company secretary services Singapore because of its distinct
advantages. However, before you outsource, be sure to check the credibility and
experience of the firm to get the best results.
