Besides its low corporate tax rates, Singapore has become a favorite of foreign firms due to its business-friendly policies. A 2022 Foreign Direct Investment Confidence Index report ranks this Southeast Asian country as the 18th most attractive location for business investments. Singapore offers firms attractive labor market conditions and excellent technological and financial infrastructure for business success.
However, staying abreast of company-related regulations in this emerging technology hub is crucial for business founders on this island. From registering properties to complying with rules, how do you navigate the island state’s regulatory requirements and business needs? A corporate secretarial service can effectively solve the challenges of setting up a corporation in Singapore.
How can your business benefit from hiring a corporate secretarial service? Learn more!
Why Is a Corporate Secretary Essential for Businesses in Singapore?
Corporate secretarial services are necessary for any business setting up a firm in this Southeast Asian country. As stipulated in the Companies Act of Singapore, every firm in the country must have a company secretary within six months of incorporation. In addition, the appointed secretary must be licensed and reside in the country. But besides being mandatory, a corporate secretarial service can play a significant role in meeting your business needs.
Here are some benefits of a corporate secretary:
1. Compliance with Regulations
Keeping up with legal and regulatory requirements may take much work for firms with subsidiary entities across numerous nations. A corporate secretarial expert introduces sound governance practices and risk controls within the worldwide firm. Additionally, they maintain a regular reporting pattern and stay current with regulatory changes in each jurisdiction. These services give a corporation immediate value by lowering risk and safeguarding its reputation.
You get access to specialized compliance expertise from professionals who have gathered and honed best practices over many years and are constantly monitoring legislative and regulatory changes.
2. Expertise and Knowledge
Company secretaries are experienced in the rules and regulations governing a specific business and sector type. By relying on the skills and experience of professional company secretaries, business owners have a golden opportunity to ensure that they comply with the law in all aspects of their operations.
A competent good company secretary can provide expert guidance on all aspects of corporate governance and compliance and will ensure that your firm entirely complies with all applicable legislation.
Furthermore, every other employee in a corporation has specific tasks. For example, directors must oversee board agendas, stakeholder participation, and corporate working culture. The company secretary should assist with these processes and ensure they are up to date.
3. Saves Time on Administrative Tasks
Corporation secretarial obligations can become administratively demanding, even overwhelming, for a corporation in many situations, notably during cross-border expansion and rapid growth. A corporation may hire an outside expert to serve as company secretaries in one or more jurisdictions.
For example, a US corporation expanding into Singapore may hire a third-party provider of company secretarial services. These experts can provide administrative assistance to managers, executives, and directors. They can write reports, research, and gather data for senior management.
4. Helps Maintain Good Corporate Governance
Corporate governance is becoming a more significant component of corporate strategies. Good corporate governance not only reduces the risk of non-compliance with statutory and regulations for companies in Singapore, but it also assists a company in meeting the transparency requirements of investors and regulators.
Corporate governance promotes sound and effective decision-making through processes, practices, and rules. Furthermore, it serves as the first line of defense against any allegations of malpractice or breach of corporate duty.
Good corporate governance is critical for mitigating risk and fostering growth. Corporate secretaries maintain compliance and uphold the highest standards of corporate governance while going above and beyond to support your board, chairs, and directors’ overall proficiency.
5. Helps with Financial Compliance
Businesses are being held accountable and transparent by investors, regulators, customers, and even employees. A corporate secretary serves as a compliance officer and also provides financial guidance. This involves ensuring the company complies with all legal and regulatory obligations by filing its yearly returns with the Accounting and Corporate Regulatory Authority (ACRA).
Your corporate secretary organizes your paperwork and submits the required information to ACRA before rigorous deadlines. Having professional in charge of your company’s register, books, and other compliance documents ensures your business runs smoothly.
A corporate secretary lets you concentrate entirely on your company’s growth without being distracted by corporate and administrative duties. As an authorized representative, the secretary file and register any document or form on behalf of the company. They also help maintain secretarial records, statutory registers, and books. You are also relieved of administrative tasks such as organizing a general or board meeting, drafting meeting minutes, and sharing-related tasks like transfer and transmission. Indeed, having the assistance of a trained company secretary will allow you to reduce the amount of time you spend on compliance matters by smoothly and in advance drafting your documentation and files.