A lot of business owners in Singapore hire a company secretary pay the bill and then forget about it. They think they have taken care of the problem. This is not always the case. Sometimes things can go wrong and the cost of not paying attention can be very high. Discover more here!
The Accounting and Corporate Regulatory Authority or ACRA has strict rules and deadlines. For example companies have to file their returns and update their director information on time. If they miss these deadlines they can get fined. These fines can add up quickly. Before you know it the company is in trouble with the regulator. Saying “we did not know” is not an excuse.
So what does a company secretary do? They keep track of the companys records file the paperwork prepare resolutions and make sure all the documents are accurate and easy to access. This may seem like a job but it is very important. For instance when an investor wants to see the companys documents or a bank is checking the companys background or the company is being sold, having records is crucial. If the records are messy it can ruin the deal.
There are a things that separate a good company secretary from an average one.
They communicate with you proactively. Your company secretary should remind you of deadlines and changes in the rules before you even have to ask. If you always have to chase them for updates then something is wrong.
They are experts in their field. The rules and regulations are always. A good company secretary stays on top of these changes and advises you accordingly. When you are looking for a company secretary ask them how they stay current with the rules. If they give you an answer that should raise some red flags.
They take responsibility for their mistakes. Mistakes can happen to anyone. It is how they are handled that matters. A good company secretary owns up to their mistakes. Fixes them quickly. If they just make excuses and blame someone then you cannot trust them.
You should also be careful about the fees they charge. Sometimes the headline fee is low. There are extra charges for services that should be included. Always compare the cost of the service not just the introductory rate.
One thing that many founders do not realize is that their compliance history is like a credit record for their company. Investors check it lenders review it and people who might buy the company scrutinize it. If there are gaps or errors in the record it can raise questions that you do not want to answer.
In Singapore companies that operate cleanly and follow the rules are rewarded. You should choose a company secretary who takes this seriously as you do. Your companys compliance record is very valuable so you should make sure it is, in hands.