A company is an entirely distinct entity that is incorporated under special provisions of the legislation of the country and forms a component of the corporate sector. This sector is considered to be a key player in the business world as the country’s economy is mainly pivoted on the performance of its corporate sector.
This sector also contributes to the country’s GDP and performance of stock markets. It is apparent that the country’s government has a main focus on the corporate sector the performance of which is measured by the cumulative performance of the companies, especially the giant groups, existing in the corporate scenario.
Corporate sector and the legislation
The legislation for the corporate sector is not just enunciated for the company incorporation but for the operation of the companies. A registered company is required to adhere to the statutory rules set under the company legislation throughout its lifetime and even when the company is under liquidation. A company is always a complex structure having intricacies in its operations due to the presence of several independent departments to perform various functions.
Secretarial functions in a company
Every registered company is required statutorily to maintain an independent secretarial department under the supervision of a qualified company secretary who is head of all its secretarial functions. He is responsible for complying with the various legislations and to provide a pragmatic solution to the problems. He is also responsible for filing all statutory forms and returns within the prescribed period.
The profile of a secretarial head is complex because he has to oversee a lot of company-related matters. He takes an entire load of finances, investments, management, and secretarial functions, leaving top management to focus on enhancing the values of their business.
Support for secretarial services
Corporate secretarial functions are a big scenario that includes many functions of routine and non-routine nature. Many big and multinational companies sometimes hire Non-Routined Secretarial Services to strengthen their secretarial department. These services have a team of experts in company matters that support the company on various issues of non-current nature.
Some services have an infrastructure to provide comprehensive corporate secretarial services to the big multinational corporate groups. These services integrate with the secretarial department of the corporate group and advise on corporate planning, structuring or restructuring. They also integrate with the company’s secretarial staff to create promptness to comply with the requirements under the legislation so that the company doesn’t face penalties.
What happens when a company becomes dormant?
Every registered company is bound by the legislation until it is active functionally, but when a company carries out no business activities in the given period of time, it is deemed as a dormant Company.
The functional activities and secretarial responsibilities of the company under this situation are reduced, but the company is still required to comply with many filing provisions under the legislation. There is no reason to escape the liability on the ground that the company is not active.
The company may not be required to file a tax, but it would still require to file its annual return. The responsibility of filing lies with its secretarial head who is required to arrange every information required under the legislation, though support can be sought from the non-Routined secretarial services.