Registering a company protects the directors from legal liability and deems that the registered entity is separate. It is preferable to register a company if your business is looking to raise funds from VC firms or other investors. However, running a company also requires adherence to multiple compliance requirements.
Adhering to these compliance requirements can be time-consuming and complicated for the business owners. Therefore, a business owner should consider using company secretarial services to fulfil these regulatory compliance requirements.
Apart from ensuring that a company adheres to compliance requirements, an entity offering corporate secretarial service provides the following benefits as well:
- Advisory services
A corporate secretary can provide valuable advice to the entrepreneur or owner regarding various provisions of a country’s corporate law. Such advice can be about the invitation of additional funds for investment, conduction of meetings, and the creation of charges on the property. A corporate secretary can lend a legal perspective for any decision to be taken concerning the business.
- Maintenance of proper records
A company is mandated to maintain various records under the Companies Act, 2013. As per international laws also, there is a stringent requirement regarding maintenance of records concerning meetings conducted by the companies, financials of the company, and data related to the directors. All these records have to be maintained as per the format specified by the Companies Act. A corporate secretary would be aware of the same and enable proper maintenance of such data.
- Risk mitigation
A company might face various compliance, legal and regulatory risks if they cannot fulfil compliance requirements. A corporate secretary mitigates such risk and allows the owner or the entrepreneur to focus on the business. Suck risk mitigation includes timely filing of returns with the requisite department, avoidance of penalties, and any other legal complexities.
- Best practices
Since a corporate secretarial service provider works with several companies, it would be aware of different best practices which can be benchmarked across organisations. Thus, a company can adopt these best practices rather than strive to implement processes from scratch. It would save both time and money and facilitate the adoption of industry-wide best practices.
- Lower probability of incurring penalties
There could be instances when your team or you might miss out on fulfilling ROC (Registrar of companies) related compliances. Not adhering to compliances can result in your company getting struck off. It could also impact your directorship in your existing firms. You would also have to incur penalties to remove the ‘strike off’ status.
The ever-changing business environment and the global environment have made it necessary that specialists and professionals are hired for the requisite job. Apart from ensuring that efficient services are being provided, a company secretarial service provider would enable a company to focus on its core competencies rather than getting stuck with compliance related hurdles.
Some of the leading corporate secretarial service providers include AKM Global, Deloitte, KPMG, etc., which are renowned worldwide.