Why A Company Secretary Is Especially Crucial For Startups
When registering a company in Singapore, there are four major stakeholders that will serve as your business’s foundations: the shareholders, auditors, directors, and the company secretary. Of these important positions, the secretary has the least liability. Nonetheless, secretaries still play an important role in businesses and are considered crucial people who serve a vital purpose for the successful operations of a business.
However, from the viewpoint of startups, particularly those with a limited budget, hiring a company secretary or engaging in company secretary services can be a topic of debate. Oftentimes, questions like “can their functions be covered by the other stakeholders?” or “will they not eat up startup funds?” arise.
If you are still wondering whether your company needs a secretary, this article might help you! Read on to find out some of the primary reasons why having a company secretary is necessary for every startup.
1. To comply with a legal requirement
It is a requirement under the Singapore Companies Act that all companies in the country must appoint a local and qualified secretary within six months from the incorporation date. As for public companies, secretarial functions can be taken only by an ordinary resident in the city-state, on top of having to meet a particular set of requirements.
On the other hand, private companies generally do not need to comply with such strict requirements. This means that candidates for company secretarial jobs are only required to have a Singapore residency and must be of legal age. That said, this does not mean their function and importance in the business are any less significant.
2. To fulfil financial and legal duties
When it comes to legal and financial duties, the company secretary is the one who handles the insurance coverage of the company and prepares and files every account statement according to the Singapore Companies Act. They are expected to make sure that the newly established business follows the regulations and laws set up by the Memorandum of Association. Without an effective company secretary, these responsibilities can be easily overlooked and cause the company to incur penalties early on.
3. To streamline operational and business duties
A company secretary acts as the link between the employees and the directors. They are responsible for setting the agenda for conferences and non-official meetings and for taking care of every transaction that can affect share distribution within the company. Moreover, they are the key person for the documentation of the company’s transactions and the ones who can provide relevant information about the company. All in all, these functions are especially crucial for starting a business.
Conclusion
Overall, having a company secretary is mandatory, especially for startups, because the responsibilities that come with a third job are essential for business processes. For one, startups are still at the stage where they are establishing the groundwork in the market. By not having someone to do secretarial services effectively, their organisation can easily crumble and eventually lead to substantial financial losses.
If you are in need of the most efficient and reliable secretary services to help organise and improve your business processes, OneStop Professional Services is here to help you! We are a reputable firm that offers the most excellent company secretary as well as company incorporation services in Tanjong Pagar. Aside from this, we also provide a variety of other valuable services, such as accounting, auditing, corporate financing, and more. Contact us today for more information.
