After incorporating a company in Malaysia, the next step would be to appoint a company secretary within 30 days to fulfil the requirement as stated in the Companies Act 2016. While it is common to appoint a company secretary recommended to you through word-of-mouth, digital company secretarial firms have emerged in recent years as the choice for entrepreneurs who prefer efficient online processes over traditional ways of dealing with paperwork. Here are 4 reasons why opting for a digital company secretarial firm could be better for your company.
Legal in Malaysia
One of the most common concerns regarding the appointment of a company secretary from a digital company secretarial firm in Malaysia is its legality. Although there are not many players in the market at the moment, digital company secretarial firms are gradually gaining traction in Malaysia for their efficient services. Much like a traditional company secretary, a company secretary from a digital company secretarial firm requires a practising certificate that should be renewed every 3 years with the Companies Commission of Malaysia (SSM). The SSM even encourages online processes by introducing e-service platforms such as the MyCoID portal and MBRS portal. Hence, as long as the company secretary holds a valid practising certificate, it is legal for them to carry out their business operations online.
As the digital company secretarial firm has digitalised many traditionally offline processes such as company incorporation and signing board resolutions, these company secretarial tasks can be done quickly without the need to print, sign, scan, and make in-person appointments. Without the hassle of paperwork, a process that would usually take more than 7 working days (e.g. company incorporation) may be done in just 2 working days by adopting e-signatures and e-KYC processes. Some digital company secretarial firms may even provide a web or mobile application that allows you to access important company documents and request for company secretarial services by logging into your account.
It is common for a traditional company secretary to charge a very low monthly retainer fee (RM50 – RM150), excluding fees for other company secretarial services and disbursements for each service provided. You may need to pay to request for the notice of registration, certified-true-copies (CTCs), board resolutions, and even printing. Digital company secretarial firms, on the other hand, generally charge like other software-as-a-service (SaaS) providers. They typically offer several packages with a list of mandatory company secretarial services included for a one-time or recurring subscription fee. Hence, there would be no surprise each time the invoice is issued.
Digital company secretarial firms utilise technology in their day-to-day operations to ensure efficiency in serving the clients. Since they don’t have to sort through stacks of paperwork, the turnaround time for them to get back to your request or enquiry is shorter. Besides, many processes like invoicing and setting up reminders for important deadlines are automated, giving them more time to talk to you about your concerns on statutory compliance of your company. An online meeting can be arranged, too, instead of an in-person meeting, to sort things out quickly and accurately.
The company secretarial industry in Malaysia has been operating using manual processes for the past few decades. Since the digital company secretarial firm is still a relatively new concept in this country, each digital company secretarial firm may offer different features in their services. One of the most basic features is to provide an online dashboard where you can view your company documents. Other digital company secretarial firms may allow for the process of company incorporation to be done fully online, from submitting the company incorporation form and making payment, to verifying the identity of its directors and shareholders. Hence, it is important to evaluate the type of company secretarial services you would prefer to have before engaging with a digital company secretarial firm.