Before incorporating a company, it is essential to look at the responsibilities that come with the changes you are about to effect. Corporate secretarial services have been designed to make the transition easier, especially for companies that have just been incorporated, and those that have grown so massive and in need of additional support.
Help in mitigating risks associated with corporate non-compliance
When setting up a business, your priority may be leaning towards making a profit more than anything else. It is easier to fulfill this when the business is registered as a sole proprietorship or a partnership. An incorporated company is more complex and has strict regulations, especially since raising capital is easier and involves more people than other forms types of businesses.
Corporate secretarial services have been designed to help to ensure the company abides by the laws. The compliance laws cover several departments of the company and hiring a company that has experts in the different fields guarantees that the company remains compliant. Besides legal compliance, corporate secretarial services help to protect the company against administrative incompetence as well.
Prepare financial records
Incorporated companies in Singapore are required by the Accounting and Corporate Regulatory Authority (ACRA) to file accounting returns annually. Corporate secretarial services help to ensure the company’s accounts are prepared and ready as per the schedule chosen for filing returns. Annual returns need to be filed within 30 days after holding the company’s annual general meeting. It is therefore important to have the support of corporate secretarial services providers who can organize and ensure the accounts preparation coincides with the meeting and the timelines given to ACRA.
Change the particulars of the company
Companies change over time, especially when it comes to shareholders. There will be those selling off their shares and those buying the shares. All these details need to be updated regularly to ensure the company keeps track of the investors and investment levels. Without the support of secretarial service providers, it would be difficult for a company to keep up with the changes, and have updated records.
Updated insurance demands of the company
Corporate secretarial services also ensure that every aspect that the company’s insurance covers is up to date. This includes cover for all the vehicles, staff, directors, and any other property. In case any assets are procured after the renewal of all the other insurance covers, it is vital to have the list updated. It is easy to have this part of administration responsibilities neglected, especially during the peak season when the company has a lot going on. Hiring corporate service providers ensures compliance to avoid legal issues that may arise later.
Corporate service providers continue to provide immeasurable services to corporate institutions to ensure compliance. It is vital for companies, especially newly incorporated ones, to understand and appreciate the gap that is filled by corporate secretarial service providers. Failure to comply with Singapore’s laws will lead to penalties that may prove costly for any company. These are avoidable costs that can be prevented by hiring a professional to ensure the company remains compliant.