5 Common Misconceptions about Corporate Secretarial Services
As per the ACRA, you have to appoint a corporate secretary within 6 months of your company incorporation Singapore. Without the appointment, the process remains incomplete.
You cannot keep this position vacant for long, because, as a chief compliance officer of the company, the secretary plays an important role. The job is complicated, and many Singapore companies hire professional company secretarial services.
ACRA counts the company secretaries as one of the key officials of the company. The companies need a competent secretary to take care of their statutory compliance efficiently. These professionals can streamline the flow of information within the organization leading to effective corporate governance and prompt statutory filings within the due dates.
Misconceptions about Singapore Company Secretaries
Some of the business owners argue that they do not need a full-time company secretary. Some even think that paying a secretary is equivalent to money down the drain. Yes, a few misconceptions are floating in the market about this role. Let us see a few of them.
1. It is Just an Administrative Job
Yes, a corporate secretary has to see to the administrative tasks in the company. They have to take care of meetings and communicate with the shareholders and directors.
They also have to coordinate the activities of various departments and maintain the company’s statutory records. They also see to it that the company meets regulatory standards and is governed as per its constitution. However, a corporate secretary’s job is far more complex.
2. You can Appoint Anyone as a Corporate Secretary
No! It is not true that a company can hire anyone in this critical role. The public companies have to hire a qualified and certified company secretary who has prior experience working in this capacity.
However, it is not binding for Singapore private limited companies to do so. And that is the root cause of the misconception. These companies are allowed to hire someone knowledgeable as their secretary. The appointee has to be well-versed with all the aspects of Company Law of Singapore and complying with the statutory regulations. It is why smart companies invest in an experienced provider of Singapore company secretarial services.
3. You Need a Company Secretary only to Register a Company
The role of a secretary goes beyond merely forming a company in Singapore. They are responsible for their company’s annual reporting with ACRA, conveying changes in the company, tax compliance, and responding to the changes in laws and regulations.
4. You Need an In-House Full-Time Company Secretary
Well, hiring an in-house full-time secretary appears as a dead-investment to many small business owners. The misconception stems from the fact that their secretary’s work does not earn them any profits. For these owners every penny saved matters. They have an alternate solution to hiring such a permanent secretary in outsourcing the task to a professional firm.
5. Hiring a Company Secretarial Services Provider is Costly
You can choose to outsource your compliance-related tasks to a professional company secretarial services firm. It means you do not have to search, interview, or hire a company secretary. There is no need for you to train or fire them. You also do not have to bear any monthly salaries, employee benefits, incentive, or waste time in the leave management, etc.
When you outsource your compliance to a competent company secretarial services provider, you get to enjoy the services of their expert company secretaries. It is an entirely stress-free solution. These firms usually have a range of packages. Depending on your business requirements and goals, they can offer you customized solutions.
SBS Consulting is a reputed provider company secretarial services in Singapore. If you have any questions, call us on +65 6536 0036 or email us at info@sbsgroup.com.sg for answers.
