Corporate compliance is essential for a company to exist in today’s competitive market. From holding the required board meetings to ensuring good corporate governance, a company has to focus on several things. Often, secretarial tasks become cumbersome and challenging for organisations. No company wants to be caught in non-compliance with the applicable laws and regulations. Besides compliance, corporate secretarial services in India include support for constitutional change, corporate restructuring, mergers, and demerges. Read on to understand the current scenario of corporate secretarial services.
What falls under the bracket of secretarial services?
It is crucial to note that a company cannot ignore secretarial services at any cost. Non-compliance with corporate laws might lead to monetary penalties. However, a financial penalty is not the only repercussion of non-compliance. Repeated non-compliance can lead to the cancellation of the company’s license. Now that you know that secretarial services cannot be ignored or avoided let us understand the different services needed for effective compliance.
Checking the compliance status of the company
Secretarial services include cross-checking the current compliance status of the company. It includes audits and checks to ensure that a company follows the law. It is better to check the company’s compliance status at frequent intervals and ensure everything is in order. A company cannot wait for the concerned authorities to find a fault within the internal processes. Besides statutory compliance checks, a company must also ensure that the laws for different corporate deals are followed. For example, there are guidelines for how an M&A deal must go.
Maintenance of corporate compliance
Compliance checks might be organised once a quarter or year. How will companies ensure that the required processes are repeated daily to stay compliant? With the right compliance management practices, a company can stay on track. Compliance practices are embedded in day-to-day operations. With the help of secretarial services, companies can ensure that all necessary meetings are organised at the right time. Completing the required filings and recording the minutes of meetings also come under secretarial services. Statutory registers, record books, minute books, and many other documents are maintained by corporate secretaries. Maintaining the statutory registers and minute books is an obligation for companies that they cannot ignore.
Management of special events
Corporate secretarial services in India are also concerned with the management of special events. From the incorporation of a company in India to merger/demerger, corporate secretaries help companies with numerous aspects. Special events are any substantial changes bought within the company. These changes can be as follows:
- Merger with another company
- Strategic partnership with another corporate entity
- Constitutional changes
- Transferring the company shares
- Change in the management of the company
Now that you know what falls under the bracket of corporate secretarial services let us understand how to look for reliable corporate secretaries.
How to find the right corporate secretaries in 2022?
Corporate secretaries are skilled individuals who aren’t easy to find as the demand for secretarial services has grown exponentially. A company should recruit/hire top corporate secretaries to ensure effective corporate compliance. To do the same, the company will allocate funds for recruiting and training corporate secretaries. However, there is a better and more economical way to leverage the services of the best corporate secretaries. A company can choose to outsource corporate secretary requirements to a third party. Many CA firms in India are known for offering corporate secretarial services at affordable prices.
By outsourcing corporate secretarial requirements, businesses can focus on their core competencies. In-house resources and employees can be freed for other business activities. However, a company will have to consider a third party’s reputation, history, and pricing before outsourcing corporate secretarial requirements. The goal is to reduce overhead costs without compromising the company’s compliance status. Much rides on the compliance status of the company. A company must select a reliable partner for corporate secretarial services for the same rationale.
In a nutshell
In today’s competitive space, companies can lose their reputation quickly. Repeated non-compliance with corporate laws might lead to a disaster. To avoid any such scenario, companies need corporate secretarial services. Start looking for the best corporate secretarial services in India to avoid compliance hassles!