One of the critical functions of any company secretary is guaranteeing compliance with corporate regulations and guidelines. They are the ones responsible for arranging and attending board meetings, recording the exact minutes, and guaranteeing that all of the company’s plans are executed lawfully. Company secretaries are also pivotal in ensuring smooth operations, legal compliance, and overall business success. Given these essential duties, the portfolio is sacrosanct for all businesses seeking legal standing in Singapore.
Companies, however, have options on how to secure this critical service for their businesses. They can either employ an in-house secretary or outsource the position to a reputable corporate services provider. Both approaches have their own pros and cons, with the suitability of each depending on the business’s growth stage and needs. For instance, a startup struggling with raising capital may not benefit much from outsourcing its secretariat role to an agency.
In today’s rapidly evolving business landscape, where regulatory frameworks keep becoming increasingly complex, more companies recognise the potential benefits of outsourcing their company secretary services to competent agencies. In this article, we will explore ten of such benefits which can also spur you into adopting this approach.
10 Reasons to Outsource Your Company Secretary Services
Better Allocation of Scarce Internal Resources
Finance is a major issue for most companies, and raising capital for critical business functions isn’t getting any easier. The less a company spends on its non-productive aspects, the better. Outsourcing secretariat roles means there’s no requirement to pay a monthly salary, bonuses, benefits, and entitlements that regular staff will usually receive. Companies can thus use the funds realised from such savings to zero in on their endeavours to develop their business further, which in turn can lead to increased efficiency and proficiency. Outsourcing is, therefore, a long-term funds-saving method for companies seeking to minimise their spending.
Better Risk Management in Business Functions
Competent secretarial agencies are well-versed in handling all the compliance requirements of companies. They will function better as risk managers than in-house secretaries, whose scope and experience may be limited. By outsourcing your company secretary roles to experienced experts, you can guarantee shareholders of administrative consistency while limiting the gamble of mistakes or oversights that could adversely affect your business activities.
Better management of Companies’ Business and Operational Duties
Managing a business becomes more efficient as concentration or focus increases. If business owners have fewer worries about statutory requirements they need to meet, they can put all their attention into doing what really matters. Outsourcing company secretary services helps achieve this by taking the challenge of managing the necessary regulatory tasks off the shoulders of company executives.
Outsourcing is Cost-Effective
Outsourcing company secretary services helps reduce the costs associated with hiring and training employees, providing adequate facilities, and covering various overheads. This benefit may not be so evident in the short term, but after a year or two, business owners will see how this approach can work at minimising spending. Outsourced agencies only receive payment for jobs done and appearances made; they do not continue to get salaries or are able to take leaves like regular staff. And despite enjoying cost savings, the quality of work is often maintained or improved, allowing more resources to be invested in business development.
Company’s Progress Not Impeded by Office Politics
When relying on an outsourced secretary service, the quality and productivity of the company secretary’s work will not be so easily affected by internal office politics or employee relationships, ensuring a more objective approach. There are times when issues about promotions or social interactions get in the way of office duties and, as such, can impede productivity. But with an “outsider” taking up the responsibility, these problems will hardly arise.
Reliable Services at All Times
Companies providing specialised outsourcing company secretary services tend to develop a high degree of competence and expertise. They tend to have more personnel with industry-relevant certifications coupled with years of experience. Therefore, if you outsource your secretarial services to them, you can benefit from their proficiency, leading to quicker and more reliable completion of tasks.
By outsourcing company secretary services, companies can ensure timely management of vital business tasks. This helps to avoid possible legal difficulties as all legal procedures, including the filing of financial reports and taxes returns, are more likely to be completed on time with the help of experienced corporate secretarial service providers. Besides, specialisation leads to greater efficiency.
Experience and Information
Outsourcing company secretary services allows businesses, especially new ones, to access expert assistance from certified, skilled, and experienced corporate secretaries. Instead of resorting to trial and error, they can benefit from the wisdom of established accountants and professionals working within the outsourcing agency. This expertise helps companies in addressing various administrative concerns and ensures a higher level of professionalism and efficiency.
Effectiveness in Business Tasks
With the support of outsourced secretarial services, companies can streamline their business operations, giving them more time to focus on core activities. This results in improved overall efficiency and productivity for the organisation.
Also, from a legal viewpoint, if anything goes amiss with your business because of the laxity of an agency, you can choose to take legal action against them. But with an in-house secretary, whatever loss incurred due to your employees’ ineptitude invariably becomes yours to bear. The best you can do is sack them or withhold their salaries. However, doing so can lead to a legal tussle, which may not augur well for the company.
Peace of Mind
Outsourcing company secretary services is more than just a strategic business decision; it also brings a valuable intangible benefit: peace of mind. Entrusting critical administrative and regulatory responsibilities to external experts offers a sense of tranquillity and assurance to shareholders and top-level management, knowing that you have nothing to hide. It can attract more investors to your business, thereby positively affecting your company’s prospects.
As businesses face evolving challenges and opportunities, outsourcing company secretary services is pivotal to gaining a competitive edge, staying compliant, and remaining agile in an ever-changing business landscape. Embracing this transformational approach elevates efficiency and effectiveness and propels organisations toward a future of sustainable success and prosperity.
Nevertheless, these benefits are only realisable when companies pitch their tents with reputable agencies. That is why due diligence is critical when planning to outsource an important office role like a company secretary. Reviews can help, and company CEOs can also do background checks to find the perfect fit for themselves.