Efficiency in managing statutory compliance allows you to focus on your business. This is why a digital company secretary could be better for your company.
After registering 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 go to a company secretary that you heard through the word-of-mouth, digital company secretary has emerged in recent years as a choice for entrepreneurs who prefer efficiency and online processes over the traditional ways of dealing with paperwork. These are 4 reasons why a digital company secretary could be better for your company.
One of the most common concerns towards a digital company secretary in Malaysia is its legality. Even though there are not many players in the market at the moment, just like a traditional company secretary, a digital company secretary requires a practising certificate that should be renewed every 3 years from the Companies Commission of Malaysia (SSM). In fact, SSM has encouraged online processes by introducing e-services platforms such as the MyCoID portal and MBRS portal. Hence, as long as the digital company secretary holds a valid practising certificate, they are legal to carry out their business operation online.
As the digital company secretary has digitalised many traditionally offline processes such as company registration 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 normally takes more than 7 working days, like company registration, could be done in 2 working days. Some digital company secretaries may even provide a web or mobile application that allows you to access important company documents and request for company secretarial services by logging in to your account.
It is common for a traditional company secretary to charge a very low monthly retainer fee (RM50 - RM150) excluding fees for every other company secretarial services and disbursements for each service provided. You may need to pay to request for notice of registration, certified-true-copies (CTCs), board resolutions, and even printing. The digital company secretary generally charges like other software-as-a-service (SaaS) providers. They 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.
The digital company secretary utilises 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 the digital company secretary to get back to your request or inquiry 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 decades. Since the digital company secretary is still a 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, and others may enable company registration to be done fully online, from submitting the company incorporation form, making payment, to verifying the identity of directors and shareholders. Hence, it is important to evaluate the type of digitalised company secretarial services you would prefer to have when engaging with a digital company secretary.