News & Updates
December 14, 2022
Debunking Common Myths About Corporate Secretarial Services in Singapore
Nothing could stop Singapore from being the best country to start a business in Southeast Asia. Because of that, the country has witnessed an influx of foreign investors getting ahead of each other in benefiting from the business hub’s economic strength. For a good reason, it is also easier to incorporate a business with enticing corporate tax laws.
However, the long list of requirements to fulfil does not end after the business has been incorporated. The truth is, it is just the start of an entirely different set of obligations to carry out. And believe it or not, the appointment of a corporate secretary or secretarial services Singapore is an essential requirement that gets less attention. The Accounting and Corporate Regulatory Authority (ACRA) mandates Singapore-incorporated companies to appoint a corporate secretary within the first six months of official incorporation.
The Role of a Corporate Secretary in Company Incorporation in Singapore
Before we get into an in-depth discussion about the common myths surrounding corporate secretaries in Singapore, let us take a step back and know more about the roles of secretarial service in company incorporation.
Under the Companies Act, the company registration process would not be fulfilled without hiring a certified company secretary. According to the law, a newly incorporated company in Singapore should hire a qualified secretary within six months from the date of incorporation. Otherwise, legal proceedings and penalties will be charged.
A corporate secretary’s job revolves around fiduciary functions of an organisation. To be accepted as a corporate secretary in Singapore, an individual must be a resident in the city-state, a natural citizen, or permanent resident (PR).
4 Misconceptions of Corporate Secretaries in Singapore
ACRA’s stringent requirements for the appointment of a corporate secretary may come off as strange for foreign business owners. Some of them may ask the same question: What is so special about a corporate secretary that its appointment must be mandated by law? To better under this, this article will debunk the common misconceptions of secretarial services Singapore. Continue reading below!
Myth 1: A Corporate Secretary’s Job Is Only as Good as of a Personal Assistant
Many assume that a corporate secretary only carries out administrative roles unless they understand the job better. And, believe it or not, some people see a secretary as a personal assistant with an office in the company business location.
Even if a corporate secretary’s duties involve coordinating and planning company meetings, sending notices, and taking minutes, it goes beyond these. As a corporate officer, a secretary bridges the gap between the company and ACRA by acting as a compliance officer.
Understanding corporate laws and different company policies is part of a corporate secretary’s statutory duties. They also advise executives about their responsibilities under the law. With all these responsibilities, anyone can say a secretary is more than just a PA.
Myth 2: Anyone Can Replace a Corporate Secretary’s Role
Replacing a corporate secretary’s role requires much more than just performing administrative duties. It also includes a basic understanding of accounting and more. Corporate secretaries in Singapore must fully understand corporate laws. They are required to have academic and professional qualifications to match. Being a corporate secretary is not for everyone. It takes the right skill set and knowledge to ace the job.
Myth 3: Corporate Secretaries Are Only Needed to Start a Company
The third myth is easy to understand how it has come this far. Every Singapore-starting company must hire a corporate secretary to fulfil its incorporation. However, having a secretary at every company’s helm goes beyond ACRA’s requirements. A corporate secretary plays a vital role in overseeing schedules and keeping the company on the right side of corporate laws, which are ever-changing.
That said, corporate secretaries and secretarial services in Singapore are crucial parts of a company, whether during incorporation or not.
Myth 4: Every Singapore-Incorporated Company Needs a Full-Time Secretary
It is indisputable that corporate secretaries are essential to business continuity. However, not all companies can afford to include them in the payroll unless they are large companies with enough resources. For a small business, it is practical to outsource secretarial services in Singapore instead of keeping an in-house officer. Outsourcing can still retain the function of a corporate secretary.
Know More Corporate Solutions from ContactOne
A company secretary does not have to hold a law degree to be an efficient officer. But they have to be tech-savvy and must be knowledgeable of the latest software that eases their job responsibilities. Companies can hire externally, but if they opt to outsource secretarial services in Singapore, ContactOne covers them.
At ContactOne we have an array of corporate solutions, including secretarial services. Our professional team will work hand in hand with you to achieve your goals in managing and growing businesses. Get in touch with us today and learn your options. Call us on +65 6333 0633 or +65 8666 3633, or visit our website at www.contactone.com.sg.