Significance to Appoint a Company Secretary Singapore for Startups

Significance to Appoint a Company Secretary Singapore for Startups

A company secretary is one of the key officers of any company. They are responsible for your business compliance. After incorporation of the company, you need to hire a Company Secretary Singapore within the first six months.

According to ACRA, every enterprise must appoint a company secretary after incorporation. This is because they are responsible for ensuring that every board member is aware of the company's legal responsibilities. Besides, a company secretary is also in charge of administrative and reporting functions mandated by the law.

But is there any requirement to hire a company secretary for a startup business? Or how they are essential? In this blog, you will find all the answers here!

Importance of Company Secretary Singapore for Start-up

Without having a better understanding of the role of the company secretary, you can't find the answer. In compliance with ACRA, it is mandatory to have a company secretary, even for a startup company. The responsibilities mentioned under their designation play a significant role in the business process.

To put it simply, startup companies are at the stage where they are working to build their foundations in the market. And not having one dedicated individual for secretarial tasks can disturb the system. Apart from this, entrepreneurs may not pay proper attention to other crucial business aspects. When you don't have a company secretary, the company may face some possible scenarios and failures.

Below we are mentioning some:

  • Fail to create a resolution for business
  • Forget to take a crucial step to verify a business change
  • Poorly maintained records
  • Non-compliance with business law
  • Inaccurate year-end reports

There are many other reasons to appoint a Company Secretary in Singapore for a startup business.

Legal Requirements for Company Secretary Singapore

No one can become a company secretary. There are some legal requirements which are specified by the company's act. The primary section 171 of the companies act sets some guidelines for the company secretary. Let's have a look!

  • The person should be a Singapore citizen, permanent resident, or entry-pass holders
  • Essential knowledge and experience to perform the function of company secretary
  • The sole director of a company cannot be appointed as a company secretary
  • The position of a company secretary cannot be vacant for more than six months

Every individual must fulfil these legal requirements to become a company secretary.

Responsibilities Perform by Company Secretary

We list some crucial responsibilities that every company secretary undertakes and contribute to the company!

Company's Update and Filing with ACRA

  1. Any company officer's appointment, resignation, or death
  2. Updation of director's particulars
  3. Company annual returns filing
  4. Share allotments or transfers of shareholders
  5. Modification to the company constitution
  6. Any change in the company name

Statutory Registers Maintenance

  1. Maintenance of minutes books of every meeting
  2. Issuing Shares
  3. Annual report and company account distribution
  4. Lodging of signed board resolution

Board Meetings and AGMs Preparation

  1. Financial reports of a company distribution
  2. Meeting minutes and attendance
  3. Meeting agenda preparation
  4. Director's resolution preparation

Other Miscellaneous Responsibility

  1. Send reminders for filing deadlines
  2. Preserve shareholder relations
  3. Ensure the safety and proper use of the company seal
  4. Monitoring register and movement of shareholders

Roles of Company Secretary in Singapore

The company secretary performs multiple roles within the company to undertake numerous responsibilities. We are highlighting the leading roles performed by the Singapore Company Secretary. Let's take a look!

Administrative Role

The administrative role is the primary role of the company secretary. However, it includes some essential tasks foundational to every form of business, such as recording, contracting, settling, or clearing.

To better understand, we are mentioning some of the following:

  1. Adherence to IRAS that includes stamp duties or tax filing deadlines etc.
  2. Any changes in administrative tasks such as shareholdings, company profile, directorship, etc.
  3. Assistance on operational matters like how to open a bank account, do you require any license etc.
  4. Ensure company compliance with ACRA.

Fiduciary Role

A company secretary is held responsible for any fiduciary duty breach. Below are the essential things a company secretary to be expected:

  1. Ensure that there is no conflict of interest with the company
  2. Perform their duties with care and diligence
  3. Responsible for not revealing any company confidential information and trade secret
  4. No secret profile while carrying out their function
  5. No need to act beyond the authority provided by law

Advisory Role

A company secretary also plays the role of advisor for the company. They provide proper guidance to company directors to perform their statutory duties and remain compliant with the Singapore company act. This includes the following tasks:

  1. Proper guidance on corporate governance and ethical business practices
  2. The right time to prepare annual compliance filings to avoid late submission
  3. Introduction of new shareholders and directors
  4. Advice on directors' duties related to financial reporting to ACRA

Conclusion

Now, its clear to make the right choice for your startup business when it comes to hiring a company secretary. Every business requires a Company Secretary Singapore for seamless business operations. For effective business growth, hire a qualified individual as a company secretary. On the other hand, hiring an ineffective and unreliable company secretary may cause a loss to your business. So, its essential to choose wisely!

Many companies in the market offer Company Secretarial Services in Singapore. BT Consultancy is one of them. We are highly professional and experienced and help businesses appoint a qualified and effective company secretary. For any other further details, you can contact our expert team!