Of the four stakeholders in a company, the one with the least accountability is the corporate secretary. It is no wonder that startups, especially those operating with a limited budget, will question the need for one. In truth, a secretary is one of the important people within an organisation.
Designating a secretary in a company is mandated by the Singapore government. According to the Companies Act, all businesses must have a well-qualified secretary appointed within six months of the company’s incorporation. Failure to comply will result in a fine.
Aside from the legal reasons, a corporate secretary in a Singapore company can deliver specific needs. We list some advantages of having one below:
Corporate Secretaries Manage Most of the Operational and Law-related Jobs
One of the key things that a corporate secretary does is maintaining and noting down any changes in the business. For example, the corporate secretary has to file and submit the change of address as a document to the Accounting and Corporate Regulatory Authority (ACRA). Failure to do so can render your resolution invalid by ACRA.
Another responsibility of a secretary is to arrange a general meeting whenever your business appoints a new shareholder. When a business starts afresh, many shareholders like to take some interest in the business, which can get overwhelming sometimes. The possibility of forgetting to hold a meeting is high in this scenario. If you fail to carry out this task, you may have to face legal action in court. The chances of this happening are low if you appoint a secretary, as they can perform this task responsibly.
Corporate Secretaries are Responsible for Financial Duties
Maintaining all financial records of your business is very important. Still, managing them on your own can be a challenge. Not to forget, you have other important business affairs to take care of, such as employing new workers and meeting new shareholders. It is the responsibility of a secretary to maintain all the books of the company. These books include the cash inflows and outflows of the company, taxes, and other financial records.
A corporate secretary can note down all of your business transactions and inform you diligently whether the business is doing well or not in the light of your company’s financial records. If your business fails to pay any tax to the Singaporean government on time, you will incur a heavy fine and you might as well end up losing tax benefits. A secretary will help prevent such fines that can be faced by your business.
To make a business thrive in Singapore, especially with all the competition and fast-changing rules and regulations, small businesses and startups have to put in some serious efforts. For your business to grow and survive in the competitive business world, it is a necessity and a requirement to hire a corporate secretary.
An option is to work with a professional provider like CorpXervices. Since rules are constantly being adjusted and expanded, employing these companies are practical. They take the load off your shoulders by delivering efficient services at a price you can afford.