Why Do You Need a Corporate Secretary in Singapore
The foundation of every strong company is its secretarial team. Secretaries ensure that all administrative tasks in the company are handled in a structured and efficient manner. In accordance with ACRA requirements, every company incorporated in Singapore must fulfill the statutory requirement of appointing a company secretary within 6 months from the date of its incorporation. If you are planning to start a business in Singapore, it is essential that you get a reliable corporate secretary to help your company run smoothly.
What Does a Corporate Secretary Do
Most secretaries take up multiple roles, mainly but not limited to administration, advisory and fiduciary.
Administration
Administrative tasks are given to secretaries to ensure that your business runs smoothly. This includes maintaining Minutes and Registers Books, submitting your company’s Annual Return to ACRA, monitoring your company’s compliance with relevant regulations and more.
Your secretary needs to ensure that all these tasks are done accurately and submitted before deadlines. This ensures that the company is protected from unnecessary liabilities by regulatory bodies, which translates into a better focus on the business on the director’s part.
Secretaries also help to facilitate communication throughout the company, across management levels. They also give prompt reports to directed parties to ensure cohesion within the company.
Advisory role
All secretaries should be well-versed with the legal and compliance framework of businesses, such as the Company Act and Income Tax Act, on top of internal governance within the company itself.
Though they are not directly involved in decision-making within the company, they still help to facilitate this process by providing key information about the company. They also add value with their knowledge of regulation compliance, which directors can take into account while formulating their strategies.
Fiduciary role
Secretaries are liable to act in the best interest of the company in good faith. They should avoid disclosing potential conflicts of issues that may arise.
Given the wide range of duties that your company secretary is responsible for, it is important that you hire someone meticulous, dedicated and competent. Else, your company’s operations may be jeopardized.
Not only should your secretary embody these characteristics, they should also be trustworthy. This way, you can leave these administrative duties to your secretary to do while you focus on other important tasks in the company.
Requirements of a Corporate Secretary in Singapore
A corporate secretary must meet specific legal criteria to fulfill their vital role within a company:
- 18 years old and above.
- The company secretary must be locally resident in Singapore.
- The same person cannot simultaneously hold the positions of sole director and company secretary.
How to Choose a Good Corporate Secretary in Singapore
Selecting the right Corporate Secretary is a strategic decision that demands careful consideration. Beyond the legal requirements, several key abilities and qualities contribute to an effective partnership:
Expertise and Knowledge
A good Corporate Secretary should possess a deep understanding of Singapore's corporate laws, regulations, and governance practices. Look for candidates with relevant qualifications, certifications, and a track record of successfully managing corporate secretarial duties.
Industry Experience
The complexities of different industries require specialized knowledge. Consider a Corporate Secretary who has experience working with companies in your specific sector. They will be better equipped to handle industry-specific challenges and nuances.
Reliability and Trustworthiness
As a pivotal figure in your company's operations, your Corporate Secretary must be reliable and trustworthy. They will have access to sensitive company information and play a role in decision-making processes, making integrity and confidentiality paramount.
Attention to Detail
Corporate secretarial tasks involve meticulous record-keeping, document preparation, and compliance management. A good Corporate Secretary must exhibit a high level of attention to detail to ensure accuracy in all aspects of their role.
Effective Communication Skills
Your Corporate Secretary will be a bridge between various stakeholders, including directors, shareholders, and regulatory authorities. Effective communication skills are essential for conveying information clearly and maintaining open lines of communication.
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Frequently Asked Questions (FAQs)
Do all companies in Singapore need a Corporate Secretary?
Yes, every company registered in Singapore is required to have a Corporate Secretary.
What qualifications should a Corporate Secretary possess?
A Corporate Secretary should ideally have knowledge of corporate laws, regulations, and excellent organizational skills.
Can a director also act as a Corporate Secretary
No, a sole director cannot act as the Corporate Secretary. There must be a separate individual fulfilling this role.Is outsourcing Corporate Secretarial services allowed?
Yes, companies can outsource Corporate Secretarial services to a qualified firm like Swiftly.
What are the consequences of not having a Corporate Secretary?
Failing to appoint a Corporate Secretary within six months can result in penalties, legal repercussions, and even the company's dissolution. Directors may also face a penalty of up to $1,000.
