Why Do I Need A Company Secretary?
Most of Accountant Online’s clients join us when they are in startup mode; is it a good idea to sign up to Company Secretarial services then? Or is it too early? And what does a Company Secretary do exactly? Like most questions, it is really a matter of your own situation and needs. Below is a list of choices that directors have when they are considering the duties of a Company Secretary. We hope this will help you in deciding whether you need a Company Secretarial services now, or later.
What Is A Company Secretary?
Since the Companies Act 2014, it is only necessary to have one Director in your Irish company. This has really simplified the formation of companies in Ireland and means that there is no need for the old practice of having spouses, family members or friends be Directors ‘in name only’. There is a requirement, however, for your company to have a Company Secretary. This role has a really important function. Therefore, it cannot be considered lightly as just being a name on your paperwork. Company Secretarial services are responsible for communicating with the Companies Registration Office and the Revenue Commissioners. The role is extremely important since failure to comply with the law and regulatory requirements has serious consequences for your company.
Given the importance of the role, many newly formed companies decide to outsource to a professional Company Secretary firm or a Chartered Accountancy which has these skills in – house. Below are three different options for you to choose for your new company.
1.Have One Company Director, Outsource the Company Secretary Name and Role
In this situation, a new business owner decides to just appoint themselves as the single Director. They choose to use a firm of accountants or company secretaries to be the named Company Secretary on all paperwork and to act as a guide on relevant legislation. The benefit of this Company Secretarial services is that you don’t need to involve any friends, family or acquaintances to act as co-signatories on your legal paperwork. A further benefit is that the Company Secretary is a professional who keeps a register of all of the limited company’s requirements. In addition, they can advise and guide the Director and shareholders of their compliance with legal and regulatory matters throughout the life of the company.
2. Have A Named Company Secretary, Outsource the Role
Some clients name a Company Secretary on their initial paperwork and later realise that the role has quite a bit of responsibility attached, which is beyond the experience or skill (or time available) of the individual named. In this instance, they come to us to request that we carry out the role and do all the work required. However, we are not named as the Company Secretary. This service means that Company Directors have a professional who they can rely on for guidance on directors’ statutory duties under the law, disclosure obligations and corporate governance requirements and practices.
3. Have A Named Company Secretary, Do the Role In-house
Some clients opt to ask one of their Directors to carry out the role of Company Secretary. This can be tricky if the individual does not have the background or training in company compliance. There is no requirement for a Company Secretary to be qualified. Although, you should make sure that the person appointed to the role has a full understanding of the requirements of the role and the consequences for the company. The person will need to ensure that they advise the Directors of their obligations and maintain statutory registers. Furthermore, the person will prepare and file annual returns with the Companies Registration Office and other requirements.
Accountant Online’s Company Secretarial Service
Have these options helped you decide what is right for your stage of company? Drop us a line to set up a complimentary call with one of our team on 01 905 9364 and we will help you through the decision – making process.
Accountant Online’s Company Secretarial Service starts at just €240 + VAT per year for startups and is an excellent investment for you to consider in this case.
We can also help you with the following
- Re-organisation of share capital
- Preparation and filing of returns with the Companies Registration Office
- Increasing authorised share capital and affecting share allotments
- Voluntary strike off applications and restoration to the Register of Companies
- Acting as named company secretary
- Registered office facilities.
If you are still deciding, you will find the following list of blog posts useful;
- Documentation Required to Register an Irish Limited Company
- Startup Offer for Limited Companies
- How to Qualify for 12.5% Corporation Tax in Ireland