Do I Need a Company Secretary?
Contrary to popular belief, the company secretary is different from the ‘secretary’ that we all know. Yes, they may have similar tasks or activities, but know that they take on totally different roles and responsibilities. While both are important to any business, let’s just say that basically, the company secretary carries on a much bigger influence on your company because he or she can affect the growth and even the future of your enterprise.
And as we don’t want to confuse you nor leave you hanging, let your experts here at Enterprise Assurance PAC tell you more about the role and importance of a company secretary. We’ll give you all the low-down about hiring a company secretary for your company in Singapore. Hopefully, as you read on this article, you’d already be able to understand how much you really need such a professional.
First and foremost: It’s a requirement.
One of the requirements in setting up a business in Singapore is the appointment of a company secretary. Under Section 171 of the Singapore Companies Act (Cap. 50), “every Singapore incorporated company shall have one or more secretaries each of whom shall be a natural person who has his principal or only place of residence in Singapore.” Moreover, it is also required that you hire or appoint a company secretary within six months after incorporation. If not, expect to receive corresponding charges from the government or worst, imprisonment.
So if you’re determined to be a part of Singapore’s booming economy and grow your business, it’s simple. Follow the rules and just hire one. While it’s true that setting up a Singapore company is one of the easiest in the whole world, it is also a known fact that their government is strict and uncompromising when it comes to implementing their laws. So you really don’t want to get yourself caught in some bad or illegal situation.
You get someone to share your successes and burdens with.
Apart from being a legal prerequisite in building a company in Singapore, hiring one will ultimately be beneficial to you. On the surface, the company secretary will be able to save you from doing administrative work so that you can focus on growing and managing your business. In addition, appointing one may also protect you from the financial losses caused by not being able to properly and completely establish your business in Singapore. And finally, he or she is also responsible if your company fails to keep up and comply with Singapore laws. Simply put, without one, it’ll be a lot less stressful for you (especially while setting up your company) when you hire one.
You’ll have someone to look after the welfare of your stakeholders.
Also according to Singapore’s Accounting and Corporate Regulatory Authority or ACRA, your secretary holds a vital role in making sure your all your stakeholders are taken care of. In other words, he or she is not only responsible for helping the company operate legally, but also, he or she must also be answerable to the directors and shareholders. Making sure all these stakeholders are regularly informed and updated are just some of the key duties of your secretary.
You’ll have someone to consistently make sure everything is smooth sailing.
Setting up and incorporating your business in Singapore is just the tip of the iceberg. Know that as you go along the way and experience the struggles of a starting company in a new and foreign market, the help of an expert is always handy. Your legal obligations as a company and as a business owner never ends even if you have already successfully incorporated your business. As long as you want to keep doing business in Singapore (and even in other countries), you would have to regularly comply with other requirements and procedures. Hence, you need a professional who will be able to efficiently, promptly, and steadfastly accomplish all those documents and requirements for you.
In conclusion, if you really want us to answer your question, Do I need a company secretary? Then of course our answer is a resounding yes! Not only because it is required of you, but more importantly because you will soon realize how valuable that expert is to you and your company’s survival in Singapore. And as he or she is considered your custodian or even your right hand in growing your enterprise, it’s but fitting that you carefully choose who you hire or appoint for such very important position.