Outsourcing is a current trend in business because it provides flexibility and expertise to the company without the risk of overhead costs for full-time employees. One area where outsourcing has caught up considerably is in secretarial services, more commonly the role of a company secretary. This article looks at some of the important points a business should bear in mind when planning to outsource a company secretary.
Understanding the Role of a Company Secretary
The debate on the merits of outsourcing makes it necessary for one to first understand the role of a company secretary. A company secretary plays an important role in ensuring that a company is in full legal compliance, observes proper corporate governance, and carries out important administrative work, such as filing annual returns, maintaining statutory registers, ensuring the company's compliance with the law, and offering best practice advice to the board on governance. It is not just clerical; it is a strategic position that contributes to the overall health and success of the business.
Outsourcing of Secretarial Services: Benefits
Access to Expertise and Experience
With company secretarial services outsourced, you avail a team of professionally qualified specialists in the field of corporate governance and compliance. The experts always update themselves with the most up-to-date legal requirements and best practices to ensure your company remains in compliance with all the relevant regulations.
Cost-Effectiveness
For small and medium enterprises, employing a full-time company secretary can turn out to be an expensive affair. The cost of overheads in terms of salaries, benefits, and training, among others, reduces when you outsource secretarial services. You incur the costs only for the service you require, making it much cheaper.
Scalability
As your business grows, so may your secretarial requirements. Outsourcing gives you the ability to scale up or down with services as needed. In other words, you may vary the services hired without any pain of hiring or even firing employees.
Focus on Core Business
When you outsource administrative activities to a professional company secretary, your management team can concentrate on mainline business activities. You are able, through this, to channel your energy and resources appropriately into areas that will drive growth and be more profitable—areas like product development, marketing, and customer service.
Risk Mitigation
This also offers an aspect of reduction in noncompliance risks with legal requirements since professional service providers know the ropes and ensure that all filings and governance practices are made accurately and on time. This lessens the risk for penalties and legal issues.
Outsourcing Secretarial Services: Key Considerations
Choosing the Best Service Provider
Not all secretarial service providers are made equal. It's important to select a provider with a credible record, some experience in the industry, and an understanding of local laws and regulations. Find a well-established company with positive reviews from other clients.
Understanding the Scope of Services
Ensure you are very clear on what your services outsourcing agreement includes: at one extreme, a provider may offer basic services in respect to compliance at the other more comprehensive services, such as corporate governance advisory and assistance administratively. Elaborate the scope of the service to provide more clarity and, of course, prevent any future misunderstanding.
Data Security and Privacy
The company secretary stores information on the financials of the company, minutes of the board meeting, and many other details about the shareholders. It is, therefore, important to make sure that the service provider has strong data security features in place for your company's most confidential information.
Cost and Value for Money
Where outsourcing is more cost-effective in general, value for services got has to be assured. Shop around for different providers and evaluate their price structures against the level of services and expertise being offered.
Communication and Responsiveness
Success in outsourcing demands a good level of communication. You should go with a provider who can listen to you and help you in the event of any issues or questions that might arise. A good provider shall integrate itself in the business and act like part of the team.
Conclusion
The outsourcing of your company secretarial services functions can mean many things: cost savings and being better prepared for compliance and risk management. However, this decision has to be taken very judiciously in view of all the points mentioned above. By selecting the correct provider and knowing the scope of services to be provided, you will guarantee that competent hands are managing the secretarial services for your company, thus leaving you at liberty to concentrate on more important issues—growing your business.
Done properly, outsourced company secretary services are not only effective cost-saving measures; they often translate into strategic decisions that contribute meaningfully to your company's eventual success. With all these in mind, you are on your way to a successful partnership, getting the complexity of corporate governance support off your mind and easing your burden.
