Starting a business is an exciting venture, and in Malaysia, one of the most popular business entities is the Sendirian Berhad (Sdn Bhd) company. While the process of registering an Sdn Bhd company has been made more accessible with online platforms, you may wonder why you still need a company secretary when you can handle the registration yourself. The reality is, the role of a company secretary extends far beyond just the registration process. Here’s why a company secretary is not just a legal necessity but a critical asset to your business.
1. Compliance with Legal Requirements
One of the primary reasons you need a company secretary is because it’s a legal requirement under the Companies Act 2016. Every Sdn Bhd company must appoint at least one company secretary within 30 days of incorporation. This person must be a qualified professional, licensed by the Companies Commission of Malaysia (SSM), and be a member of a recognized professional body or licensed by the SSM.
Failing to appoint a company secretary can result in penalties and fines. The company secretary plays a crucial role in ensuring that your company remains compliant with Malaysian laws and regulations, reducing the risk of legal issues down the road.
2. Expertise in Corporate Governance
A company secretary is not just a formality; they are an expert in corporate governance. They ensure that your company adheres to the required statutory and regulatory requirements, including filing annual returns, maintaining statutory registers, and ensuring that board meetings are properly conducted.
They are also responsible for advising the board of directors on best practices in corporate governance, ensuring that your company operates transparently and efficiently. This is especially important for Sdn Bhd companies, where maintaining good governance practices can be the difference between success and failure.
3. Handling Complex Administrative Tasks
While the initial registration of your Sdn Bhd company might seem straightforward, ongoing compliance can be complex and time-consuming. A company secretary handles the preparation and submission of various statutory documents to the SSM, such as changes in company structure, directors, and shareholders. They also ensure that all documents are filed correctly and on time, avoiding unnecessary penalties.
Additionally, the company secretary maintains the company’s statutory books and records, such as the Register of Members, Register of Directors, and Register of Charges. These records are crucial for legal and administrative purposes, and any errors or omissions can have serious consequences.
4. Facilitating Communication with Regulatory Bodies
A company secretary acts as a liaison between your company and regulatory bodies such as the SSM, LHDN (Inland Revenue Board of Malaysia), and SOCSO. They ensure that all communications with these bodies are accurate and timely, which is essential for maintaining your company’s good standing.
This role is especially important when dealing with any legal or regulatory issues that may arise. The company secretary’s knowledge and experience can help navigate these challenges effectively, ensuring that your company stays compliant and avoids any potential legal pitfalls.
5. Supporting the Board of Directors
A company secretary provides vital support to the board of directors, ensuring that meetings are scheduled, agendas are prepared, and minutes are accurately recorded. They also advise the board on their duties and responsibilities, helping them to make informed decisions that are in the best interests of the company.
This support extends to ensuring that the board’s decisions are implemented correctly and that the company’s operations align with its strategic goals. By providing this level of support, the company secretary helps to ensure that your company is well-managed and operates smoothly.
6. Keeping Up with Regulatory Changes
Malaysian corporate law and regulations are constantly evolving. A company secretary stays up-to-date with these changes and ensures that your company remains compliant with the latest requirements. This proactive approach helps to prevent any regulatory breaches that could result in fines or other penalties.
Furthermore, the company secretary can provide valuable insights into how these changes might impact your company, allowing you to adapt your business strategy accordingly.
Conclusion: A Valuable Partner in Your Business
While it may be tempting to skip appointing a company secretary in favor of saving costs, the long-term benefits far outweigh the initial expense. A company secretary ensures that your Sendirian Berhad company remains compliant with Malaysian law, operates efficiently, and is well-prepared to meet any challenges that may arise.
In essence, a company secretary is not just a legal requirement but a valuable partner in your business journey. They provide the expertise, support, and peace of mind that allows you to focus on what you do best—growing your business.
If you’re in the process of setting up an Sdn Bhd or already have one, ensuring that you have a competent and experienced company secretary is one of the best decisions you can make for the future of your business.
If you’re looking for a reliable, efficient company secretary to take care of your compliance needs, look no further. Give us a call at 016 324 0990 or WhatsApp us today.
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