It is an honor to say that the operation of a company in Singapore has its own responsibility. Most of the times, owners would be concerned with strategy, selling, and growth; however, the law of statutory compliance should not just be an area of concern left to the company secretary. Choosing a qualified and reliable company secretary Singapore is not just a formality but rather a legal obligation and a means to safeguard your company from potential pitfalls.
This article highlights the consequences of disregarding Singapore’s corporate regulations, while good investment in a competent company secretary can save your business from penalties, loss of reputation, and stoppage of operations.
A Legal Requirement in Singapore
Section 171(1)(a) of the Companies Act (Cap. 50) requires that the company secretary of a Singapore company be a qualified person within six months from the date of incorporation. The company secretary has the critical task of ensuring that the company meets statutory requirements, many of which are laid down by ACRA (Accounting and Corporate Regulatory Authority).
Failure to comply entails monetary penalties and legal provisions overriding, and directors may be disqualified.
Typical Areas of Non-Compliance
Listed below are typical corporate actions that can give rise to non-compliance:
- Failure to file annual returns
- Missing AGM deadlines
- Inaccurate or outdated records of the company
- Late notification of changes (e.g., address, directors, shareholding)
- Failure to maintain statutory registers
- Improper issue or cancellation of shares or breaches of shareholders’ rights
Penalties for Non-Compliance in Singapore
The non-compliance with statutory obligations may result in large penalties. Here are a few examples:
1. Failure to File Annual Returns
- Fines of up to SGD 600 per late filing
- Court prosecution for egregious delays
2. Failure to Hold AGM
- Fines up to SGD 5,000
- Directors may incur personal liability
3. Failure to Appoint a Company Secretary
- Fine of SGD 1,000
- Update non-compliance proceedings to potentially impose further fines
4. Inaccurate Company Information Filings
- On penalties for misrepresentation or neglect
- On reputational damage or suspension risk
Such penalties can mount quickly, especially for companies unaware of the legal calendar or changes in the regulations lately.
Why You Would Need a Good Company Secretary
A good company secretary can be proven as your compliance partner; he deals with legal duties accurately and well a timely manner.
Key Responsibilities Include:
- Annual returns and compliance-related submissions
- Advising directors on legal obligations
- Updating ACRA Manually About Changes in the Company
- Preparation of board resolutions and minutes of meetings
- Maintaining statutory registers and records
More than that, a very good company secretary would save you both money and trouble by preventing every problem that could happen.
Conclusion
The appointment of a good and proactive Company Secretary in Singapore is not just about checking boxes but also about shielding your business against legal pitfalls and administrative blunders.
Start-ups, small and medium enterprises (SME), and foreign-owned entities can invest in such a professional-as-a-service company to ensure full compliance with peace of mind. A seasoned expert shall set the compliance processes while you focus on growing your business.
