There are business decisions which are reversible. This is the one which becomes costly very quickly when you overlook. According to the Singapore law, all firms that are incorporated must have a qualified Hub Corporate Services within six months of incorporation. And that clock begins to tick on day one. ACRA is not characterized by concession with regards to hectic timetables and well-meaning. What does the job entail?
Registers that are statutory should be updated on a regular basis. These are to be done in a timely manner, annually. Board resolutions must be duly recorded, AGM paperwork must be duly processed and officer changes must be duly recorded. Hit any of these wrong, and punishments are imposed. The failure to deliver on promises a number of times can put the directors in the personal liability zone. That is no fine print that is the actual exposure.
Forms are not all that a good company secretary does. Consider them as the one that checks the weather before you get out of the house. The changes in regulatory aspects occur frequently in Singapore and companies that fail to keep up see themselves being taken half-way through. The fact that someone is actively monitoring ACRA updates implies that you are proactive in responding to changes and not scramble to respond as a compliance gap has already been discovered.
Self-management path is an enticing idea among founders, particularly in the initial years when each dollar matters. It has the tendency of sticking together – until something slips. A resolution which is not recorded. An unregistered change thereof of directors. These lie untouched months until an interested investor calls a complete compliance audit. The discussion on the funding is interrupted abruptly by a bit of administrative loose ends of two years ago. Failure to comply and failure to do so at the right time is an old friend.
In Singapore, professional company secretarial services bundle it all into a single package including: registered office address, statutory filings, nominee secretary on demand and assistance on one-off corporate affairs. The cost is low enough annually to make the economics of doing it yourself seldom come up once time and risk are taken into account, appropriately.
The foreign founders tend to underestimate the expectations of Singapore in relation to corporate governance. Strict compliance standards are part of the factors that enable the country to win the status of one of the best business destinations. It is not optional to have clean records and responsible directors, but the minimum requirement.
The decision on the provider should be thoughtful. Responsiveness is the primary test. A provider who is slow in responding in regular weeks will be even slower in critical weeks. Clarity and itemisation of prices is a sign of professionalism. Indeterminate packages are an indication of frustration in the future.