Hiring a corporate secretary is a legal requirement every registered Malaysian company needs to comply with. A company secretary can help business owners handle their business more effectively and improve their internal operations in the long run.
Companies can choose to either hire an in-house company secretary or outsource their secretarial function to a professional company secretarial services Malaysia firm. This article highlights five top reasons why business owners should outsource their company secretarial function to a competent services provider in Malaysia.
What is a Company Secretary?
The roles and duties of a corporate secretary span across various areas of the company. Most people think that company secretaries only perform secretarial functions. However, the role of the company secretaries is more critical and may affect the company’s overall performance efficacy.
Some of the main duties of a corporate secretary in Malaysia include:
Managing and ensuring that the company complies with all its statutory requirements.
Ensuring that the decision of the board of directors is well-executed.
Planning and presenting the company’s annual returns after every fiscal year.
Manage any changes related to the shareholders.
Since the work of a corporate secretary is critical, business owners should only hire a company secretary who is a member of a professional organisation that the Ministry of Domestic Trade Cooperative and Consumerism has appointed. They may also hire someone licensed by the SSM.
Does Your Company Need a Company Secretary?
In Malaysia, every registered company must have at least one licensed corporate secretary as required by the Companies Act. The company secretary should fulfil at least one of the following conditions:
Members of the organisations listed in the Fourth Schedule
Individuals who have been authorised by the SSM or Companies Commission of Malaysia following the Companies Commission of Malaysia (Amendment) Act 2015’s Section 20G.
The role of a corporate secretary is very important and should not be underestimated and should only be delegated to those who are trained to perform the responsibilities effectively and have experience in the area.
Business owners can read more of the requirements regarding the company secretary from the Companies Act of 2016 and the SSM’s guidelines for the local companies’ incorporation.
Key Reasons Why It Is Better To Outsource Company Secretarial Services
Operating a business is a challenging task, wherein the accuracy and precision of the whole process are of the utmost importance. By outsourcing secretarial services, businesses can accurately and timely deal with other essential functions of the company, allowing them to improve their business productivity and efficiency.
Since all legal procedures will be completed on time, companies can avoid potential legal challenges. Similarly, they do not have to worry about managing financial or tax reports submission, as the company secretarial services Malaysia can easily handle it.
When running a fairly new company, business owners need all the professional assistance they can get to ensure a smooth operation. Hence, many companies tend to hire competent people with experience in handling different administrative matters, including secretarial services.
Engaging with a professional services provider ensures the company gets the services of trained, proficient and experienced company secretaries.
Many business owners thought that outsourcing corporate secretarial services is costly. However, this is not the case. Outsourcing can be a cost-effective process as business owners can save money from spending money on the recruitment process, internal training and workers benefits. Moreover, companies can gain access to higher quality secretarial services that are familiar with all the effective laws and policies that need to be in place for their business to run smoothly.
4. Minimal Risks
Training and managing the internal team carry many risks. When business owners rely on outsourced secretarial services, they can expect important business matters to be handled within a set period, significantly reducing the risk of financial loss, fines or legal actions.
When the company can comply with all legal requirements by outsourcing secretarial services, it can keep a good public image and reputation. Professional corporate secretarial providers also ensure that financial irregularities are avoided, helping business owners run their company smoothly.
Choosing The Right Company Secretarial Services Malaysia
When selecting a company secretarial services provider in Malaysia, business owners need to consider its qualifications, services fee, years of experience, industry expertise, management and computer skills. The firm should have company secretaries who are expert in handling multiple streams of information and capable of simplifying it for everyone in the company to understand. Some corporate secretarial agencies also offer other business solutions, including accounting and company registration services.