21 Major Determinants Of Company Secretarial Costs in Singapore

company secretary in Singapore

FAQs Related to Company Secretarial

Basic company secretarial services in Singapore may start at around SGD 500-1,000 annually, but the actual cost depends on several factors.
Yes, it is mandatory for every company in Singapore to appoint a qualified company secretary within six months of incorporation.
Company secretarial service providers typically offer services such as annual filing, statutory compliance, maintenance of company registers, convening meetings, and advisory support on corporate governance.
Yes, you can change your company secretary. The process involves notifying the current secretary, appointing a new one, and filing the necessary documents with the Accounting and Corporate Regulatory Authority (ACRA).
The ongoing responsibilities include maintaining statutory registers, ensuring compliance with regulations, preparing and filing annual returns, providing administrative support for meetings, and keeping the board informed of legal and regulatory changes.
Yes, a company secretary can also be a director or shareholder of the company.
The frequency and requirements for board and shareholder meetings can vary based on your company’s structure and bylaws. Typically, annual general meetings (AGMs) are required, and board meetings should be held regularly.

21 Determinants of Company Secretarial Costs in Singapore

As an essential aspect of corporate governance, engaging a company secretary comes with associated costs. These fees can vary significantly depending on numerous factors. 

 

Accounting & Company Secretarial Services in Singapore

 

In this comprehensive blog post, we will delve into the 21 major determinants of company secretarial fees in Singapore, helping businesses navigate the intricacies of this essential service.

 

 

1. Company Size and Complexity:

The scale and complexity of a company’s operations significantly impact the fees associated with company secretarial services. Larger, more complex organizations require more extensive secretarial support, leading to higher fees.

 

2. Annual Compliance Requirements:

 

Singapore’s regulatory landscape mandates various annual compliance filings, such as financial statements, annual returns, and tax submissions. The extent and intricacies of these requirements dictate the workload of the company secretary and, subsequently, the fee.

 

3. Business Entity Type:

 

Different business structures, including sole proprietorships, partnerships, private limited companies, and public companies, have distinct compliance needs. The entity type of your business affects the fee structure.

 

4. Industry Specifics:

 

Industries like finance and healthcare often entail additional regulatory and compliance requirements. The sector in which your business operates can significantly influence the complexity of secretarial tasks and, consequently, the fees.

 

5. Service Package Selection:

 

Company secretarial service providers offer various packages, ranging from basic compliance support to comprehensive advisory services. The package you choose directly impacts the overall cost.

 

6. Additional Services Required:

 

Beyond standard compliance, some businesses may need additional services such as nominee directorship, registered office services, or assistance with special resolutions. These supplementary services will incur extra charges. Also some company secretaries also provide other services such as accounting & payroll, bookkeeping, income tax filing, GST filing, etc. So, the cost of company secretarial services will also depend on the package that you take from them. 

 

7. Changes in Company Structure:

 

Structural changes such as mergers, acquisitions, or alterations in shareholding can intensify the workload for the company secretary, leading to higher fees.

 

8. Frequency of Meetings:

 

Frequent board and shareholder meetings can increase the administrative burden on the company secretary. The number of meetings your company conducts affects the fees.

 

9. Provider’s Expertise and Reputation:

 

The expertise and reputation of the chosen company secretarial service provider also play a significant role in determining fees. Established and reputable providers may charge higher fees, but they often offer top-tier quality and comprehensive support.

 

10. Technological Infrastructure:

Companies that invest in advanced technology and software solutions for compliance and record-keeping may benefit from reduced secretarial fees. Efficient systems can streamline administrative tasks, decreasing the time required by the company secretary.

 

 

11. Market Competition:

The level of competition among company secretarial service providers in Singapore can impact fees. In a highly competitive market, providers may offer competitive pricing to attract clients, while in a less competitive market, fees may be higher.

 

 

12. Financial Health of the Company:

The financial health of your company can also influence the fees. Companies facing financial challenges or complexities may require more extensive secretarial services, thus incurring higher costs.

 

 

13. Corporate Governance Practices:

Firms with robust corporate governance practices that prioritize compliance may experience lower long-term costs, as efficient governance reduces the risk of non-compliance penalties.

 

 

14. Geographic Location:

The geographic location of your company secretary service provider can impact fees. Service providers located in prime business districts may charge higher fees compared to those in less central areas.

 

 

15. Language and Communication Requirements:

Multilingual or specialized communication requirements may necessitate additional time and effort from the company secretary, potentially leading to higher fees.

 

 

16. Company’s Growth Trajectory:

Companies experiencing rapid growth may encounter increased regulatory complexity, requiring more extensive secretarial services and, consequently, higher fees.

 

 

17. Specialized Industry Knowledge:

Certain industries, such as fintech or pharmaceuticals, demand specialized knowledge from the company secretary. This expertise can affect fees, as specialized knowledge often commands a premium.

 

 

18. Client Support and Responsiveness:

The level of client support and responsiveness offered by the company secretarial service provider can impact the overall experience and may justify higher fees for superior service.

 

 

19. Risk Management Needs:

Businesses with complex risk management needs may require advanced secretarial services to ensure compliance with risk-related regulations, potentially resulting in increased fees.

 

 

20. Corporate Social Responsibility (CSR) Requirements:

Companies committed to CSR initiatives may require additional secretarial support for reporting and compliance with CSR-related regulations.

 

 

21. Legal and Regulatory Changes:

Singapore’s regulatory environment is subject to constant changes. Companies must stay updated on these changes, which may necessitate additional work from the company secretary and, consequently, higher fees.

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ACRA Cancels Registration of Filing Agent and Qualified Individual for AML/CFT Breaches

The Accounting and Corporate Regulatory Authority (ACRA) had cancelled the registrations of filing agent (RFA) and qualified individual (RQI) on 18 January 2024. The registrations were cancelled in view of breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) controls under the ACRA (Filing Agents and Qualified Individuals) Regulations 2015 (the “ACRA Regulations”).

Some of the basic AMT/CFT controls that a RFA and RQI are required to exercise are as follows:

(a) perform additional customer due diligence measures when a customer is not physically present during onboarding;

(b) inquiring if there exists any beneficial owner in relation to some of its customers; and

(c) perform risk assessments i

RQIs and RFAs provide corporate secretarial services for business entities, such as helping customers to incorporate companies, file annual returns and fulfil other filing requirements under the Companies Act 1967 or other Acts under ACRA’s purview. RQIs and RFAs are required to perform customer due diligence measures in accordance with the ACRA Regulations, and conduct their business in such a manner as to guard against the facilitation of money laundering and the financing of terrorism. RQIs and RFAs must also satisfy statutory requirements such as being fit and proper persons, to be registered or continue to be registered.

RQIs and RFAs who breach their statutory obligations may be subject to enforcement actions, such as financial penalties of up to $10,000 or $25,000 per breach respectively or have their registrations with ACRA suspended or cancelled.

Therefore, RQIs and RFAs play an important role in helping to detect and combat illicit activities.

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