Running a successful business in Singapore requires more than just a solid business plan and determination. It also involves a deep understanding of the legal and regulatory framework. A corporate secretary plays a vital role in ensuring legal compliance and sound governance. However, their responsibilities are often misunderstood. In this article, we debunk common myths about corporate secretaries in Singapore and highlight their true value to your company.
1. The Corporate Secretary Is Just An Administrative Job
While corporate secretaries do handle administrative duties such as meeting minutes and recordkeeping, their role is far more strategic. They ensure that the company complies with legal obligations under the Companies Act, maintain the company’s statutory registers, and provide guidance on corporate governance.
They are also responsible for coordinating board meetings, filing annual returns with ACRA, and ensuring that all procedural requirements are properly followed. Their involvement ensures the company remains legally compliant and transparent in its operations.
2. Anyone Can Be Appointed as a Corporate Secretary
This is a dangerous misconception. In Singapore, the Companies Act states that a corporate secretary must be a natural person who is a resident of Singapore and possesses the necessary experience and qualifications. Public companies are required to appoint someone who meets specific professional requirements, such as being a qualified lawyer, accountant, or certified secretary.
Appointing an unqualified individual can lead to serious compliance issues and legal risks. That’s why it’s crucial to engage professionals like those at Stars Bridge, who understand the nuances of corporate governance and can protect your company’s integrity.
3. An In-House Full-Time Corporate Secretary Is Required
Not all companies require a full-time, in-house corporate secretary. For smaller businesses or startups, hiring a full-time secretary may not be cost-effective. Fortunately, Singapore allows companies to outsource this role to professional firms like Stars Bridge.
Outsourced corporate secretarial services offer flexibility and expertise without the overhead costs. These professionals stay updated on the latest regulatory changes and provide timely support to ensure your business remains compliant. It’s a smart way to reduce risk and stay focused on growth.
4. FAQs About Corporate Secretaries in Singapore
1. Is a corporate secretary mandatory in Singapore?
Yes. Every company incorporated in Singapore must appoint a corporate secretary within 6 months of incorporation, as required by the Companies Act.
2. Can the director also act as the corporate secretary?
Only if the company has more than one director. In a one-director company, the sole director cannot also be the corporate secretary.
3. What are the qualifications of a corporate secretary?
For public companies, the corporate secretary must be professionally qualified (e.g., lawyer, accountant, or certified secretary). For private companies, the secretary must be a resident with the appropriate knowledge and experience.
4. What’s the benefit of outsourcing corporate secretarial services?
Outsourcing saves time and cost while giving you access to qualified professionals who stay updated on the latest legal and compliance changes. This ensures your company remains compliant with minimal hassle.
5. What happens if a company does not appoint a corporate secretary?
Failure to appoint a corporate secretary is a breach of the Companies Act and may result in penalties or enforcement actions from ACRA.
Need guidance or support with your company’s compliance? Contact Stars Bridge today to find out how our experienced team can support your business every step of the way.
