Incorporating a business in Singapore is often quick and easy, but it entails complying with the requirements and regulations set forth by ACRA to ensure a smooth process. This is where a corporate secretary establishment comes in.
However, some entrepreneurs are unsure as to what a corporate secretary should do. Worse, they have misconceptions about what a corporate secretary can and cannot do. Believing in these myths could hurt your business.
Having a corporate secretary is optional
Some business owners see hiring a corporate secretary as an additional expense and a waste of money. But no business can complete its Singapore company incorporation without appointing one.
According to the Singapore Companies Act, a newly incorporated company must assign a corporate secretary within six months after its incorporation. If the current secretary steps down from his or her position, the company is obliged to appoint a new one.
A corporate secretary only performs clerical tasks
In these modern days, some businesses still operate under archaic traditions and notions. A corporate secretary’s job is to ensure that the company complies with all Singapore laws. He or she does not exist to fetch coffee for the board members. In fact, it’s not even included in their job description to do so.
The role of a corporate secretary in a company is so important that no company may continue with its operations without one. In addition to ensuring compliance with the regulatory requirements, a corporate secretary also helps in keeping fiscal problems at bay. The company may be fined by ACRA for its inability to comply with the statutory requirements.
A corporate secretary must have a law degree
Although a corporate secretary must be well-versed with Singapore laws, he or she is not required to have a law degree. However, it is helpful for the corporate secretary to have a working knowledge of the tasks required in company compliance.
Aside from ensuring accordance with the law, the corporate secretary can also help alleviate whatever issues the company may encounter during company secretary services Singapore
Anyone can be a corporate secretary
Protecting the well-being of the company is one of the corporate secretary’s jobs, and it’s something that companies cannot entrust to anyone. Competence, as well as an extensive knowledge of the Singapore laws, are essential qualities required of a corporate secretary. These are non-negotiable qualities that could help a business flourish in Singapore.
In addition, the corporate secretary must be a public accountant and member of the Institute of Singapore Chartered Accountants. He or she must also possess the necessary qualifications under the Legal Profession Act (Cap. 161).
A corporate secretary’s job ends after incorporation
The corporate secretary holds a very important position within a company. The job involves ensuring the company’s well-being by keeping track of board meetings, which are vital to the operation of the incorporated business.
The company secretary is responsible for noting the minutes of each meeting and ensuring that board members follow proper procedures. Moreover, the company secretary ensures that the directors are aware of the deadlines for annual returns and updating the members of any changes in the statutory law.
The job of a corporate secretary cannot be outsourced
Most companies prefer to have their corporate secretaries in-house. However, companies may outsource the secretary’s job to a company secretarial service if the company has only one shareholder or director or if they cannot find a suitable candidate for the post.
This is helpful for business owners, particularly foreign investors, who are not familiar with Singapore regulations. The company secretarial service can act in behalf of the shareholders in reporting to ACRA any amendments made within the company. Additionally, the acting corporate secretary also sees to it that all tax information of the company is filed accurately and on time.
Hiring a corporate secretary is one of the most important things to do during company incorporation. A competent corporate secretary ensures that company processes are in accordance with Singapore law.
Corporate Services Singapore helps businesses comply with statutory requirements pertinent to operating a business. Contact us today so we can help you comply with the legal requirements of incorporating a business in Singapore.