Understand the prices behind appointing a corporation secretary for your company also as how company secretaries charge for his or her services.
Venturing into a replacement business by starting a corporation isn’t easy as you’ll need to juggle limited resources to make sure every penny is well spent. Company secretarial charges could also be seen as a compulsory cost to a corporation , with the businesses Act 2016 requiring all Sdn Bhd to appoint a corporation secretary, but their value is usually not well understood by business owners. Hence, most business owners tend to travel for the cheaper option because the company secretary doesn’t seem to play a crucial role in day-to-day business operations. Let’s take a glance at how company secretarial fees are charged in Malaysia.
Retainer fee versus subscription fee
The monthly retainer fee for company secretarial services in Malaysia ranges from as low as RM60 to as high as RM600 per month. This fee generally doesn’t include any services provided by the corporate secretary of your company, apart from being compliant to the businesses Act 2016. the other company secretarial services requested, just like the filing of annual returns, would require additional payment to the corporate secretarial firm.
Another pricing model of a company secretarial firm is based on monthly subscription. A subscription fee is more commonly charged in the Software as a Service (SaaS) industry where you would enjoy a range of services for a fixed fee paid each month. While this pricing model is used in the digital company secretarial industry overseas, it is still relatively new in the Malaysian company secretarial landscape. Business owners in Malaysia are used to paying a low monthly retainer fee to the company secretary and getting invoices on any ad hoc company secretarial services done.
The norm of hidden fees
With a coffee monthly retainer fee, most company secretarial firms need to charge a better fee for every service provided upon request, like preparing company resolutions, providing certified true copies of statutory documents for the needs of loan applications and opening business bank accounts, etc. Most company secretarial firms even include charges for emails, phone calls, and even for every document printed within the invoice issued.
It is true that there’s a fee payable to the businesses Commission of Malaysia (SSM) for lodgements made with the SSM. Usually, company secretarial firms need to charge a service charge on top of the fee payable to the SSM, as stated within the official Table of Fees, to hide expenses and structure for the low monthly retainer fee.
Comparison of company secretarial fee in a year
A company secretary should be purchased their liability, not services
Business owners may need gotten wont to the pay-per-service sort of pricing model from a standard company secretarial firm, but which may not be the simplest thanks to engage with a corporation secretary. Being an appointed company secretary to your company means they need the liability to make sure compliance to the laws and regulations of Malaysia in the least times. they ought to be available for consultation once you have an issue regarding the statutory compliance of your company. Hence, unlike an Accounting Services or a lawyer, a corporation secretary shouldn’t be purchased each unplanned service they supply , except for their role in providing good corporate governance and ensuring the statutory compliance of your company.
At first glance, it’d seem expensive to pay a monthly subscription fee of RM200 rather than a retainer fee of RM60 to appoint a corporation secretary for your company. However, within the end of the day , this fixed monthly pricing not only allows you to plan your company’s financials easily, but it also means your company is within the safe hands of an experienced company secretary who is liable of ensuring your company’s compliance to the laws and regulations under the SSM. Thus, understanding the roles of a corporation secretary is vital for you to form the proper choice because the business owner to interact an appropriate company secretary for your company.