The corporate sector is a key player in the country’s economy and has a major contribution to the country’s GDP. The corporate sector is responsible for bullish and bearish scenarios in the stock markets.
Its role is not just big but bigger than any other major sector. There are hundreds and thousands of small and big companies in every country in the corporate sector; some are giants, big groups, and even multinationals, but their role is nearly the same.
The government has its main focus on the entities that have the lion’s share in the corporate scenario because their performance and contribution are valuable for the progress of the country’s economy.
Why companies hire services for secretarial functions
While companies strive to earn profits, the government strives to ensure that the companies’ progress is not hampered because of mismanagement and oppressive activities. Thus, the corporate sector is put under the legislation, and the statutory rules and regulations are imposed on the companies for which they are required to maintain a special secretarial department under the supervision of a qualified secretarial head.
Every company may not have enough budget to maintain an independent secretarial department and many small companies are not required to appoint a qualified secretarial head, but these companies have the option of getting secretarial support by hiring Corporate Secretarial Services from outsources.
Implications of corporate non-compliance
Secretarial compliances are mandating that companies are required to follow without fail and excuse. There are adverse implications of not complying with the provisions of the legislation.
Non-compliance of these mandates carries major risks of penalties and punishments, sometimes harsh and even imprisonment. This also tarnishes the image of the company in the corporate world.
When the company is a public limited company and the public has invested in its stocks, the bad reputation due to non-compliance affects the faith of the public in the company’s future lowering the demand of company’s stocks, eventually mitigating the value of its stocks in the stock markets.
Timcole Singapore incorporation company support their client companies to manage and mitigate the risks of corporate non-compliance.
Innovations that created an ease of corporate compliance
The time has changed and the innovative techniques have replaced the traditional methods of corporate compliance. The things have become much easier due to the facility of online filing and the services providing support can do it in their office on behalf of the client company.
They take complete responsibility for timely compliance, reducing the load of the company’s secretarial department. A company can also save money in this way by reducing the regular secretarial staff.
The services that help active and dormant companies in compliances
The services that perform secretarial functions on behalf of the company are professionals that also perform many other functions such as filing of income tax returns, but when a company has become dormant, it is absolved of many statutory liabilities.
Deposit of tax and Filing of Income Tax Return for Dormant Company is not required, though a company cannot skip its annual accounts and an Annual Confirmation Statement, previously called annual return.
A dormant company must notify within a specific period when it has become active. When the company has no budget to spend on the secretarial department during the dormancy, it can get support from external sources.