Why is a Corporate Secretary Essential for Small Businesses?

 

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.