In Malaysia, the role of a company secretary is crucial for ensuring that businesses meet their statutory obligations. Appointing a competent company secretary not only helps a company remain compliant with laws and regulations but also provides peace of mind when navigating complex administrative and reporting requirements. Two critical areas where a company secretary’s expertise is vital are annual returns and financial reporting. Let’s explore their role in these processes and why having a qualified company secretary can make all the difference.
Annual Returns
In Malaysia, every company is required to file an annual return with the Suruhanjaya Syarikat Malaysia (SSM), commonly known as the Companies Commission of Malaysia. The annual return is essentially a snapshot of the company’s structure, including key information such as:
• Company address
• Directors and shareholders
• Share capital
• Company secretary details
The annual return must be submitted within 30 days of the anniversary of the company’s incorporation date. Failure to submit on time can lead to penalties, and prolonged non-compliance can even result in the company being struck off from the SSM register.
This is where a company secretary comes in. They ensure that the return is filed promptly, with accurate and up-to-date information. More importantly, they can assist with any necessary changes, such as updates to directors, shareholdings, or registered office addresses. By staying on top of this process, the company secretary shields businesses from costly mistakes and legal repercussions.
Financial Reporting
Another critical function a company secretary oversees is ensuring the company’s financial statements are prepared and lodged in accordance with the law. Under the Companies Act 2016, all Malaysian companies, except exempt private companies, must submit audited financial statements to the SSM. These statements provide an overview of the company’s financial health, and submitting them on time is essential for regulatory compliance.
The company secretary liaises with auditors, accountants, and directors to ensure that these financial reports are not only accurate but also filed within the stipulated deadlines. They play a vital role in gathering the necessary information, reviewing the documents for compliance, and submitting them to SSM. Additionally, the company secretary ensures that the board of directors is well-informed about the company’s financial obligations, further streamlining the reporting process.
Why a Professional Company Secretary is Essential
Many businesses underestimate the importance of compliance with annual return filings and financial reporting until they are faced with fines, penalties, or worse. A professional company secretary ensures that these filings are done on time, without errors, and in full compliance with Malaysian law. Their knowledge of the regulatory landscape and ability to navigate the SSM’s procedures allow business owners to focus on their core operations.
Additionally, a company secretary offers valuable guidance on corporate governance, ensuring that the company remains transparent and accountable. This is especially crucial for businesses seeking investment or growth opportunities, as good governance practices enhance the company’s credibility.
Engage Ashton as Your Company Secretary
Don’t let the complexities of annual returns and financial reporting overwhelm your business. Ashton, a trusted company secretarial firm, is here to ensure that your company stays compliant with all Malaysian regulations. With our professional expertise, we handle everything from filing your annual returns to managing your financial reporting, giving you the freedom to focus on growing your business.
Call or WhatsApp us today at 016 3240990 and let Ashton take care of your corporate compliance needs.
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