Things You Should Know About Hiring Corporate Secretary in Singapore
The first thing you should know is every limited company in Singapore must hire a company secretary. However, this isn’t true for a partnership, (see Does an LLP need to hire a secretary in Singapore?) so don’t get confused. We can’t say it is not necessary to employ a company secretary in an LLP because a secretary can be of help in any type of business firm. They can help corporate grow with various responsibilities. In this article, we get an insight to understand the legality of hiring corporate secretary in Singapore.
Choosing A Company Secretary for A Singapore Based Company
The essentiality of a company secretary in Singapore has been included in Chapter 50, Sec.171 of the Singapore Companies Act. There are some requirements that a person should fulfil to become eligible for that position. The conditions are not so much in case of a private limited company in Singapore. Literally, any individual residing in Singapore can be a corporate secretary for a private limited company in the city-state:
- The person should be residing in Singapore and have Singapore citizenship, permanent residence, dependent pass or a Singapore employment pass.
- The person should know the organizational structure and should be able to fulfil the basic secretarial duties in Singapore. Remember that a company secretary will be liable for all of these duties, so he/she must be a qualified individual.
- A Singapore company can outsource its secretarial services i.e. hire a corporate secretarial services in Singapore.
Note that a company should hire a company secretary within six months from the date of its incorporation. The sole director or a sole shareholder cannot be the secretary in Singapore.
Legal Rules of Hiring Corporate Secretary In Singapore in A Public Limited Company
A public limited company is a bigger corporate than a private limited company. We expect that the secretary is more knowledgeable and has more experiences. Note that the person should fulfil the requirements and at least one of these criteria to become a corporate secretary in a Singapore Public Limited Company:
- Before you hire the person, he/she must have at least three to five years of secretarial work experience.
- The individual complies with the Legal Profession Act, Cap. 161.
- The individual is a public accountant under the Accountants Act, Cap.2
- The person is a member of the Institute of Certified Public Accountants in Singapore
- The individual is a part of the Institute of Chartered Secretaries and Administrators Association of Singapore
- The person is a member of the International Accountants Association (Singapore Branch)
- The person is a member of the Singapore Institute Of Company Accountants
Remember that at least one of these requirements must be fulfilled. Otherwise, ACRA will summon your company, and further actions will be taken.
What If You Don’t Hire A Corporate Secretary In Singapore?
You will need to pay fines. Hiring a corporate secretary is essential, otherwise, your company registration will be terminated. It is improbable because a secretary has many roles, both in legal terms and company basis. A company secretary is a must for a corporate to even survive in Singapore.