According to the law in Singapore, once a company is incorporated, a corporate secretary needs to be appointed within six months. The dilemma many companies face is whether to employ a company secretary as a full-time employee or to outsource the services from companies that have specialized in the management of corporate secretarial tasks. There are several reasons why sometimes outsourcing corporate secretarial services in Singapore is ideal.
Quick Access to Expertise
Once a company is incorporated, all the legal paperwork needs to be compliant with the laws. Most companies that provide corporate secretarial services have a wide range of expertise for small and large companies. They understand what they need to do as soon as they take on the responsibility. When you outsource professionals, you need not worry about penalties for failure to meet some of the legal requirements. Knowing secretarial duties are being handled by experts allows you to concentrate on other duties.
You get specialists minus Frequent Staff Training
When you hire a full-time corporate secretary, chances are you will need to carry out regular training on some of the responsibilities of the secretary to ensure none of the duties are overlooked or poorly done. Some of the tasks to be carried out by corporate secretaries requires one to understand complex issues.
Having a corporate secretary who is in the full employ of the company will require numerous training to be updated on the changing trends and responsibilities. When secretarial services are outsourced, the company will be getting people who have expertise in tackling specific tasks. For example, a company can outsource a service provider to provide guidance on company laws or to prepare and maintain statutory tax records. Hiring a service provider with the right expertise will save the company time and money to train members of staff on some of these tasks.
Discretion and confidentiality
The danger of having a corporate secretary employed full-time means he or she will be interacting with other members of staff. A corporate secretary sometimes handles sensitive information that needs to be treated with discretion. Unfortunately, sometimes this interferes with his or her relationship with other members of staff. The result is tension and reduced productivity. Outsourcing a firm to manage some of the sensitive information will help to maintain confidentiality.
It is cost effective
Some companies assume it is cheaper to have a corporate secretary as a full-time employee. However, this is not always true. As an employee of the company, the secretary will require all the benefits that come with full employment including sick days off, holiday pay, and many other costs. An outsourced company specializing in corporate secretarial services will need to perform the required duties as required.
Changing the status of a company can be a little overwhelming. Incorporated companies require more documentation that other forms of business registrations such as sole proprietorships and partnerships. Having a company at hand ready to take care of the secretarial services will help the directors to focus on the changes they need to implement instead of worrying about the tasks to be handled by the corporate secretary.