The most important aspect for any business today is compliance matters. If a company fails to meet the required statutory compliance, it is considered an offence and that company may be required to pay the fines, which will result in the prosecution of the company’s directors too.
For some highly regulated industries, are a challenging task to navigate the legal requirements of corporate compliance. Companies that have a requirement to meet their concerns in each jurisdiction will maintain a Complete Guide overview of all these activities and control them to manage risk. Continue reading to know more about the Benefits of a Company Secretary in India.
Role of Company Secretary in a Business
A corporate or Company secretary is responsible for the administration and communication of shareholders, maintaining corporate governance and statutory compliance. Company directors have to take all these responsibilities in case of the absence of the company secretary.
They are also responsible for reducing the company’s administrative burden and corporate governance or these will fall on the company directors. For a newly started business or organization, it is difficult to take care of all the burden of administrative needs in addition to their day-to-day work. Therefore, it plays an important role in performing all these business operations in a proper and effective manner.
Benefits of Company Secretary
The most important aspect for any business today is compliance matters. If a company fails to meet the required statutory compliance, it is considered an offense and that company may be required to pay the fines, which will result in the prosecution of the company’s directors too. The benefits are listed below, and they take care of
- Proper maintenance of all company records
- Issue reminders regarding the company’s accounts
- Filing returns with the registry of jurisdiction
- Update any changes, like director change
- Provides business advisories
- Takes care of all corporate governance and statutory compliances.
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Business Processes of Company Secretarial
For any newly formed business ventures, it will be difficult to keep them updated with the compliances of local government and corporate governance.
These service providers work with their clients in a collaborative manner and make sure to maintain a high standard of corporate governance. A few of the tasks they perform for their clients are,
- Prepare an entire set of Annual General Meeting-related documents and file an annual return with the authority of the jurisdiction
- Prepare and maintain the Directors’ and Shareholders’ minutes of the meeting
- Responsible for drafting the resolutions of standard directors
- Maintain the register of the company’s statutory, other records, and minute books of the company
- Assist the Auditors in reviewing the annual statutory of the Company’s Secretary Records
- Also maintains the accounts and reports of the company’s interim and annual statements and is responsible for publishing the same
- Prepares the Director’s Report
- Maintains the Share Registration of the Company’s members
- Helps in the transfer and other issues that are involved in shareholdings
- Attends and answers all the requests and queries from the Shareholders
- Also responsible for all other shareholder communications like Payments of interests and dividends, Issues regarding documentation rights and capitalization, maintaining good rapport with general shareholders as well as with institutional shareholders
- Monitoring all the shareholders and maintaining compliance with corporate governance
- Also, reviews for any development in corporate governance
- Provide needed assistance and advice to the company’s directors in performing their responsibilities, duties, and compliances, if any
- Performs cost comparison between three to four zones (Costs involving rent, license, registration, visa etc.)
- Have a dedicated authority to collect all the needed information about the administrative steps and provide guidance accordingly for establishing the entity
- Takes care of Company name registration and obtaining pre-approval from all authorities
- Responsible for obtaining relevant legal translations and legalization of established documents at the corresponding ministries
- Taking care of all the payments regarding the lease, licensing and labor departments
- Submission of all relevant documents and regular follow-up with the authorities
- Responsible for getting the company’s license
- Registration of newly formed entity under the labor department if needed
- Registering the company in the online portals for visa, administrative and other licensing
It is a kind of management service where an individual will act as a company representative, director or manager who takes care of all your company’s business, but this will be provided only by a few service providers, and this has prior approval or instructions from the business entity. The Annual Audit Report is very important to Draft.
Works Together for the Company’s Annual License Renewal
A company secretarial will gather all the license-related renewal Property documents, organize all the insurance-related certificates from the insurance companies and submit all the collected documents along with the fees. With this, they will also submit the audited financial statements. They will conduct meetings and correspondence with the authority and also with the business entities.
Works for the Annual General Meeting Coordination
While some service providers are not providing this feature, few of them are giving assistance in the coordination of the annual general meetings. They do preparation for the annual general meeting by,
- Informing the director to set up AGM
- Sends notifications to all shareholders of AGM
- Performs the coordination work with the Auditor
- Drafting all the resolutions and minutes of shareholders
- Coordinating shareholders and directors for signatures
- Finalizing shareholder resolution, audited accounts, and minutes with the authority
Conclusion
This article provides detailed information on the benefits of the company secretary. If you are running a business and if you have the plan to start a new venture: https://www.mca.gov.in/MinistryV2/incorporation_company.html, take a consultation, guidance, and support from the company’s secretary. Because they are the professionals who take care of all the legal and compliance needs of your business, keep the regulations updated, and meet the local jurisdiction requirements, it is always advised to have a company secretary for your organization.
