The Critical Role of a Company Secretary at Each Stage of the Business Lifecycle
If you want to be effective at business management of your Singaporean company, you have to understand the role of a company secretary. These professionals assist you through compliance challenges at every stage of business’ lifecycle. You benefit from their assistance right from the initial stage of company incorporation to its cessation.
An experienced corporate company secretary in Singapore can help you see your company through its growth spurt and difficult times. Their skills, knowledge of regulatory environment, and industry-wide experience are especially valuable to experienced and first-time owners new to Singapore business environment.
Role of a Company Secretary and How it Plays Out for Your Company
It is mandatory for you to appoint a local company secretary for your Singapore-registered company. You must do it within 6 months of its incorporation date. You cannot also leave the post vacant for more than six months.
Complying with Singaporean rules and regulations is a complex and multi-layered task. That is why you need someone qualified and certified. They also must have a solid track record of having worked for companies in your industries and niche.
As the chief compliance officer of your company, a company secretary shoulders various corporate advisory duties and advises various stakeholders and departments. They ensure that the company complies with the prevalent regulations and expands.
Even though the role of a company secretary covers overall compliance activities of your business, they are more focused on the following two areas:
1 Corporate Governance
An experienced corporate secretary will assist you in all facets of your corporate governance. They help you in improve operations by installing effective processes and procedures, increasing performance, and maximising ROI for the company stakeholders.
Your corporate secretary advises you on the efficient practices to raise the standards of your corporate governance. It is an ongoing process. Your secretary, from time to time, will recommend changes to stay with evolving regulations. In Singapore, it is of utmost importance as the regulations here are updated frequently.
They start advising you on the basic processes you must implement to secure corporate governance. Then, they go through your policies and procedures and, if needed, advise your directors and management staff on enhancing the governance framework.
2 Complying with Regulations
The role of a company secretary involves ensuring that your company comply with regulatory requirements imposed by Singaporean authorities. They assist you in coordinating with various departments and executing compliance-related tasks within the deadlines.
They especially focus on conveying and holding your AGM, annual return filing, and updating of your company’s statutory registers. They act as a bridge between the regulatory agencies and company.
They also participate in public consultations after the changes in the regulations to update their knowledge base. It assists them in preparing and executing your compliance-related tasks successfully.
Failing to comply with the statutory compliance creates adverse legal, credibility, and financial implications for your company. Authorities may also penalise and/or fine you. So before hiring a corporate company secretary in Singapore, you have to make sure to select the right services provider.
You must ensure that they have the required qualifications, certifications and experience to execute the job. And search for a provider reputed for taking the initiative to execute the necessary tasks.
Challenges in Singapore Company Incorporation
If you are yet to start your Singapore business, it is important for you to do a thorough job of it. It is better to hire a company secretary at this stage as they have in-depth knowledge of the process and the challenges involved.
They can start by helping you with corporate structure and business model to fulfil your business needs. Their advice lays the foundation for streamlined cash flow and consistent growth.
Regulatory Compliance
Complying with Singaporean regulatory requirements can be a big challenge for a newbie or a foreign business owner. Let your company secretary handle it.
These professionals have the latest regulatory knowledge. They ensure that your new company comply with all the statutory requirements without a hitch.
Choosing Legal or Business Structure to Start a Business
Singapore provides you with various business or legal structures to start your business. Your corporate secretary can help you select the legal structure most conducive to your business objectives.
Incorporating a Singapore company can serve your long-term goals. Starting and managing your business as a sole proprietorship or a limited liability partnership may help you fulfil short-term goals.
You have to be careful in your choice of legal structure. It has taxation, credibility, liability, and financial implications. Your company secretary will advise you to incorporate a private limited company if you want your business to be tax efficient and limit your liability.
Maximising ROI on Foreign Investment
Singapore is the right destination to expand your thriving SME or business. It gives you a foothold in Southeast Asia and puts you in reach of the emerging markets. It gives you access to more than 2.5 billion consumers.
Your company secretary assist you with the operating model. They ensure that it allows you to be tax-efficient and send your profits to your native place without hassle.
Challenges for a Growing Company
As your company grows, it becomes complex. A sole business owner may not experience problems relating to shareholders and stakeholders. However, large corporations and companies face them as they have multiple shareholders and stakeholders.
Holding on to a Shared Vision or Plan
With multiple stakeholders, it becomes difficult to hold on to a growth vision or plan. Each of them may have different ideas about it. The consensus becomes fractured and creates problems. Your company secretary can smooth out this situation by ensuring communication between stakeholders to garner support for a commonly accepted and viable plan.
Shareholder Disagreements
Company shareholders present their views during the meeting. Many shareholders may disagree with them. This creates problems. However, company secretaries take down the minutes of these meetings. Companies can use these documents to actually solve the issues.
Acquisition of New Business
If your company wants to acquire another business, your company secretary can advise you on effecting the transfer successfully.
Expanding in New Territories or Countries
If you have decided to start a new business in another country, such as Singapore, you better get assistance from company secretaries who practice their skills in Singapore. They can advise you on how to fulfil business goals and objectives compliantly.
Challenges at the End of Business
There comes a time when you want to stop or end your business. You may want to start a new adventure or capitalise on your investment. At this time, you have to keep a few things in mind. They are as follows:
Selecting the Future Path
Your company secretary can consult a financial consultant to assist you in deciding a viable path to manage the ending of your business successfully. They will help you judge the options, such as selling or liquidating it, or going for an IPO. After you select an option, they may even advise you on negotiating the transition hassle-free.
Statutory Compliance
The secretary can assist you in filing all the necessary documents correctly. They will see that you discharge all your legal and regulatory obligations.
Managing/Terminating/Amending Contracts
During the end stage of your business, you must terminate all your contracts with different entities including stakeholders, employees, suppliers, vendors, landlord, etc. Your corporate secretary can see to it with the assistance of a lawyer.
Benefits of Hiring a Corporate Company Secretary in Singapore
The role of a company secretary is critical, and it is why many owners hire secretarial services Singapore to discharge it satisfactorily.
- This allows them to stay on the right side of the law
- It also prevents them from getting tangled in a non-core administrative task that generates no revenue for their company
- It also leaves them stress-free and focused on achieving company’s goals, objectives, and growth
- It gives you access to experienced company secretaries
- It saves your efforts and time
- Access to various services
- Access to experts in their network
SBS Consulting is a reliable provider of corporate secretary services in Singapore. Our experts are well-versed in the role of a company secretary and pride on rendering impeccable service. Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg to discuss your company secretarial needs with our experts.
