The legal structure in Singapore clearly lays down the requirements every business in the country needs to follow. Primarily guided by the Companies Act of Singapore, 1967, and the Accounting and Corporate Regulatory Authority (ACRA), corporate entities in Singapore need to assign a corporate secretary Singapore mandatorily. While the regulation makes sense for corporates and more prominent companies, does the same apply to small businesses and SMEs? Companies with limited turnover and functions that are not as large scale traditionally have different guidelines to follow in the various aspects of conducting business; however, whether this differentiation extends to the hiring of a company secretary Singapore needs to be correctly understood.
Why a Company Secretary is needed?
Company secretaries are an integral part of corporate firms for various reasons. They streamline processes and take care of otherwise time-consuming functions so that directors and other employees can focus on their jobs, unburdened by legal and compliance formalities. Some of the primary responsibilities undertaken by a company secretary Singapore include:
- Keeping the firm updated about deadlines for compliance-related work.
- Annual filing of returns on behalf of the company
- Issuance and transfer of company shares and maintenance of a shareholder’s register.
- Keeping a record of the minutes of meetings, AGMs, and EGMs.
- Legal Compliance work.
- Advising the company and helping in the decision-making process by suggesting helpful strategies.
- Other tasks that are in the best interest of the company’s growth.
Do all Corporates Require A Company Secretary in Singapore?
As far as whether small businesses need to hire a corporate secretary Singapore is concerned mandatorily, there are no specific guidelines stating any different requirements for small businesses. As such, it is advisable to hire a corporate secretary whether the business is an SME or a big conglomerate. While it is feasible for more prominent companies to hire a full-time company secretary, a small business with somewhat limited resources may not find the budget to incorporate a full-time secretary service Singapore.
Fortunately, there are several secretarial services providers that allow such companies to hire part-time or shared company secretaries at meager costs. Considering the benefits that these individuals provide and the vast pool of knowledge they bring with themselves in terms of the legal framework and compliance framework; it is advisable to take advantage of part-time or shared company secretary services in Singapore if the business cannot afford a full-time company secretary. Alternatively, a company with more than one director can also assign one of these directors as the company secretary (upon qualification by ACRA).
The role of a company secretary is given vital importance in Singapore, thereby making it necessary for companies to assign a company secretary within 6 months of establishment. The lack of legislation guiding small businesses, whether they should or should not hire or assign a company secretary, only can be taken as a mandate for them as well, to hire an authority in this capacity to some extent. Small businesses can, however, figure out the most convenient and feasible option for themselves in accordance with the guidance that the ACRA can provide upon consultation.
