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Everything You Need to Know About Corporate Secretarial Services in Singapore
Among the most critical ingredients for risk management and success in a company in Singapore is open and transparent corporate governance.
Under the Companies Act of Singapore, every company must have a corporate secretary within six months of its incorporation date. In addition to administrative duties, the role of corporate secretarial services, including ensuring regulatory obligations are addressed, legal compliance is maintained, and communication with stakeholders is fostered, is very significant.
The article gives a comprehensive breakdown of the services provided by a company secretary. It is through awareness of these factors that businesses in Singapore can manage to maintain long-term success by not only staying afloat but also negotiating effective corporate governance.
What is a corporate secretarial service?
So, what do secretarial services mean?
Corporate secretarial services form the backbone of the management of firms, managing relations with stakeholders while maintaining good practices in governance and compliance with local law requirements. Maintenance of shareholders' information, filing of annual returns, keeping records, and conducting meetings are some of the key activities involved.
According to the Companies Act, Section 171, every company in Singapore is obligated to elect a qualified company secretary within six months after its incorporation. He/she should be a citizen of Singapore who has been appropriately trained or qualified through, say, membership in professional bodies or by a minimum experience of 3 years in secretarial work.
Corporate secretaries help the smooth running of a company and its compliance with the law by managing the credibility of its governance, statutory compliance, and efficient administration.
The role of a corporate secretary in Singapore
The corporate secretaries ensure corporate governance, compliance, and efficient communication to keep a company running.
In Singapore, company secretaries are principally responsible for the following roles:
Guiding a company on corporate governance
Holding and conducting board meetings according to the company's by-laws and statutory requirements
Provision of advice to the board on matters related to legal compliance and corporate governance
Keeping proper minutes of general and board meetings
Ensure adherence to statutory provisions
Tracking of statutory deadlines for submitting and filing to regulatory bodies
Keeping proper records of all current statutory registrations and any other relevant documents
Filing annual tax returns together with the attached documents promptly
Acting in a administrative and advisory role
Monitoring of board evaluations, conducting governance audits, and providing support for the training of directors
Corporate advisory to board on management, corporate governance, and legal matters
Supporting Stakeholders
Looking after shareholder matters, by way of notification of meetings and all share-related matters
Providing a channel of communication to ensure that management keeps stakeholders adequately informed
Carrying out record-keeping tasks
Perform the maintenance and updating of corporate documents such associated documents as the memorandum and articles of association
Maintaining legal documents and registers
Additional responsibilities may include managing the corporate seal and arranging compliance with international operations, mergers, acquisitions, and restructuring.
What are the advantages of hiring a company secretary?
You can outsource to the best corporate secretarial services in Singapore to run operations, compliance, and efficiency better.
Some of the top benefits include:
Cost-effective: It is less expensive compared to the cost of maintaining a full-time employee; it saves on hiring, induction, and operation costs. Resources could be redirected towards the core areas of growth and marketing.
Regulatory compliance: The risks of non-compliance and its penalty are reduced by ensuring compliance with local regulations like the Companies Act. Professionals keep abreast of changes in these regulations.
Expertise: Offers in-depth business record-keeping and compliance management expertise, avoiding expensive errors and missed deadlines. Also, it provides expert guidance on record-keeping.
Save time: Gives managers and business owners more time to concentrate on important projects and core operations.
Accessing Advanced Technology: Makes use of innovative technologies to improve accuracy, automate chores, and expedite processes.
Enhanced productivity & efficiency: By delegating administrative tasks to other parties, the internal team can concentrate on making strategic decisions, which boosts output overall.
Data security and confidentiality: It guarantees handling sensitive data with stringent security and confidentiality protocols, guarding against breaches and unwanted access.
Adaptability & scalability: Services may increase to meet corporate demands without requiring more employees.
What is the cost of corporate secretarial services in Singapore?
The category of corporate secretarial services fees eligible for deduction includes administrative fees connected to secretarial services rendered in compliance with the Companies Act's requirements and payable to a company secretary registered under the Act.
Typical Costs of Corporate Secretarial Services
In Singapore, employing a corporate secretary comes with a price tag. Directors and shareholders must undergo pre-incorporation screening, and yearly money laundering prevention monitoring may run from S$8,000 to S$10,000. Secretarial companies must also register with ACRA, which entails paying license fees and performing compliance audits.
A one-time cost between S$300 and S$800 and a yearly charge between S$300 and S$1,200 is associated with best corporate secretarial services in singapore. There may be additional fees for any extra services, such as submitting annual reports to the ACRA.
Hiring an outside company like Morrison works out cheaper, providing expert services and perhaps saving money compared to internal corporate secretary fees, which may run between S$45,000 and S$83,000 annually.
Factors Influencing Secretarial Costs
Organisational structure: The secretarial requirements of various corporate forms differ, which influences the complexity and expense of services.
Size and complexity: SMEs with simpler demands pay less than larger enterprises with more complicated operations in terms of fees.
Services scope: Compared to full packages that include advising and strategic help, fundamental compliance services are less expensive.
Knowledge & skill: Because of the regulatory expertise, experienced individuals or renowned organisations can charge greater rates.
Regulation & Compliance: Proactive compliance requires more skilled work, which leads to higher prices.
Personalisation: Customised services are expensive for special needs.
How to choose the right secretarial services in Singapore?
Appointing the right corporate secretary is crucial for a company's compliance and smooth function.
Consider the following factors below:
Experience & qualifications: One needs to consider the qualifications of the company secretary against regulatory bodies, including SAICSA. A provider that has served companies in your industry and scale is a good choice.
Reputation & online reviews: Seek services that peers and clients of similar industries and online reviews have recommended. Look at both quantitative indicators – such as reminders issued on time and filings completed successfully – and qualitative feedback.
Understanding of Singapore business law: The corporate secretary must keep themselves updated on the rules and regulations in order not to incur the penalty of non-compliance. Test their knowledge through scenario-based questions or seek an update on new amendments to the Companies Act.
Service offerings: Every business is different, so a customised approach is important. Be sure the package providers deliver business consulting, audit liaison and tax advice in a way that serves your current and future needs.
Morrison Consultants: Corporate Secretarial Services
Morrison offers several corporate secretarial services: annual compliance, statutory bookkeeping, company formation, and governance advisory. They are responsible for general meetings, board decisions, and annual ACRA filings to ensure that Singapore is compliant.
A testimonial from Mr Badrol of Boon Lay Power Nasi Lemak Pte Ltd. shows praise for their expertise in addressing accounting concerns and lucid correspondence.
It excels in the variety of its service packages, 30 years of experience, and an individualistic approach. Accolades such as Top SME Achiever and the Promising 500 SMEs Award for Excellence are some of its recognitions, while SiATP, PMC, and IPAS accredit them.
Conclusion
Corporate secretarial services maintain compliance, ensure robust governance, and improve internal communication within a business. Such specialised expertise can be utilised by outsourcing these services to an organisation to reduce expenses and time wasted. You can identify reputable suppliers, such as Morrison Consultants, to offer them compliance and efficiency in running their operations.
With over 30 years of experience, Morrison Consultants brings a different and results-driven solution to meet your needs. Hire Morrison Management for premier corporate secretarial services in Singapore to ensure your business's success.
FAQ
What is corporate or company secretarial service?
A corporate secretarial service ensures record keeping, filing of annual returns, and board meeting management are all addressed so that a business complies with local laws.
Why is it necessary to hire a company secretary?
The corporate secretary ensures the smooth running of operations through proper management in the sphere of governance, compliance with legal requirements, and stakeholder communication.
What is the cost of corporate secretarial services in Singapore?
The annual price range is from S$300 to S$1,200. Additional services will require an extra fee. Outsourcing can sometimes be cheaper than maintaining your internal workforce.
How should I pick a company secretarial service?
Consider background, professional standing, familiarity with Singaporean business legislation, and capacity to offer specialised services.