Company Secretarial Services: In-House vs Outsourced
9th June 2023
Lorraine Bolland See profile
As a business owner, one of the decisions you will have to make is whether to handle your company secretarial services in-house or outsource them to a third-party provider. Both options have their advantages and disadvantages, and it is important to weigh them up carefully before making a decision.
In-House Company Secretarial Services
One of the main benefits of handling your company secretarial services in-house is that you have full control over the process. You can choose the software and tools you use, and you can tailor your services to meet your specific needs. Additionally, you have direct access to your company’s records and can ensure that they are always up to date.
However, there are also some potential drawbacks to in-house company secretarial services. One major concern is the risk of non-compliance. Maintaining accurate and up-to-date records, filing confirmation statements, and adhering to regulatory requirements can be a complex and time-consuming process. If you do not have the expertise or resources to manage this process effectively, you run the risk of falling behind on compliance requirements, which could result in financial penalties or legal complications later down the line. Keeping up to date is also costly as training courses for company secretarial are expensive and hard to find.
Outsourced Company Secretarial Services
Outsourcing your company secretarial services to a third-party provider can provide several advantages. For one, you can leverage the expertise of a team of professionals who are well-versed in the latest regulatory requirements and industry best practices. This can help ensure that your company remains fully compliant with all applicable regulations.
Secondly, outsourcing can also help reduce your administrative burden, allowing you to focus on growing your business. By handing over your company secretarial tasks to a third-party provider, you free up your time to focus on core business functions and strategic initiatives. Company secretarial changes are often required when a company restructures, or as a result of tax planning. Using the same firm as your tax planners means that you can ask your advisers to deliver the whole project for you, without you having to pick up forgotten bits and pieces. These are often busy times for the company, so it can be frustrating to deal with the administration when really you want to get driving the business forward.
However, outsourcing your company secretarial services can also have some potential drawbacks. For example, you may have less direct control over the process, and you will need to rely on your provider to ensure that all necessary tasks are completed accurately and on time. Additionally, there will be a cost associated with outsourcing, which you will need to compare with your staff cost and factor this into your budget.
Not an easy choice right?
So, which option is right for you? Ultimately, the decision will depend on your specific business needs and resources. If you have the expertise and resources in-house to handle your company secretarial tasks effectively, then this may be the best option for you. On the other hand, if legalities and administration are not your strength or you would prefer to free up your time to focus on other aspects of your business, then outsourcing may be the better choice.
Regardless of which option you choose, it is important to ensure that your company remains fully compliant with all regulatory requirements. By doing so, you can help mitigate your risk and ensure that your business is well-governed for long-term success.
|Benefits of Outsourcing Company Secretarial Services
|Benefits of In-house Company Secretarial Services
|Access to expert knowledge and advice from specialists in company secretarial matters.
|Greater control over the company secretarial function, including the ability to manage compliance and governance processes internally.
|Cost savings as you only pay for the services you require, rather than employing a full-time company secretary.
|A deeper understanding of the business and its legal obligations, which can help to identify potential compliance risks and opportunities.
|Flexibility to scale services up or down based on changing business needs.
|Direct involvement in the company secretarial function, which can help to build a culture of compliance and good governance throughout the business.
|Access to the latest technology and software, which can improve the efficiency and accuracy of company secretarial processes.
|Greater visibility and transparency over company secretarial activities, including the ability to track and manage key compliance deadlines and filings.
|Reduced risk of non-compliance or penalties due to the expertise and experience of outsourced professionals.
|A sense of ownership and responsibility for the company secretarial function, which can help to ensure that it remains a priority for the business.
Ultimately, the decision to outsource or keep company secretarial services in-house will depend on the specific needs and circumstances of each business. It may be beneficial to consult with a trusted adviser to determine the best approach for your company.