Secretarial Firms Can Help Your Company With Regulatory Compliance
In every country, there are regulatory compliances that all businesses should always meet. Complying with these regulations lets them keep operations up and running. All the companies should always observe these so they can stay out of trouble and focus on growing their businesses.
This is a job for secretarial firms. A company secretary can serve as your compliance officer, making sure that the firm is abiding by the regulatory requirements. This is to avoid hefty fines and even imprisonment at worst.
Secretarial firms usually offer a system that ensures the efficiency and effectiveness of your company’s compliance procedures. Hiring them can assure you that the business will continue to grow.
Before onboarding secretarial firms in your business, you must know what kind of the services they can offer. After all, you want to get what you pay for.
What Secretarial Firms Can Offer to Your Company
Primarily, secretarial firms should be able to help you with your regulatory compliance. This, in addition to providing professional advice, building good working relationships across the organization, and implementing corporate governance policies, among others.
Legal Consultation and Legal Agreement Service
Before setting up a business in Indonesia, it is only imperative to know the government rules and regulations, especially if you are a foreign investor. You would want your business to be put in danger because you accidentally violated certain policies. This can harm your business even before you start. A corporate secretary can help you be aware of such regulations so everything will run smoothly.
At the same time, secretarial firms can aid you in drafting legal agreements—which should comply with the Indonesian laws as well. Overall, excellent corporate secretaries have a good grasp of the laws, especially those about the companies and business activities.
Checking and Revising Business Documents
In any organization, communication is key. A proper communication channel within the company is crucial in ensuring harmony among its members. At the same time, you also need to have good communication skills when dealing with third parties.
It is the job of company secretaries to make sure that the businesses have good and clear communication with everyone to avoid potential disputes and even lawsuits. They will look into your documents and agreements before sending them out. This is to assure that the terms and details are perfectly worded according to your preferences while adhering to the laws.
Making Sure That Your Business is Following the Employment Law
As a business owner, you would want to protect your employees as well—it is a top priority. In Indonesia, there might be certain employment laws that are different from what you know if you are a foreign investor. Hiring secretarial firms can help your company be in the know of such laws and their updates. This can protect your employee and your company from any violation.
Doing Background Check for Your Potential Business Partner
Before signing an agreement with a business partner, you should do a background check as part of your due diligence. You must know your potential business partner’s financial standing, credit position, and public reputation. This is to assure your company that it is dealing with a good firm. Your corporate service provider can actually do this for you so you will not have to.
Knowing the Regulations in Indonesia
As mentioned, there are many laws and regulations that businesses should follow all the time.
Capital Market Law
By the name itself, this regulation in Indonesia covers the listing of the companies on the public stock exchange.
In this country, there are two main boards for listing. One is deemed the main board which lists prospective companies and issuers with established historical data performance. Another one is called the development board and is for the companies whose full listing requirements for the mainboard are not yet accomplished.
The said law is also mandating public companies to craft an internal structure involving a corporate secretary, an audit committee, and an internal audit unit.
Trademark and Geographical Indication Laws
The trademark and geographical indication laws recognize popular brands in Indonesia and other countries as well. These laws are put into legislation to protect the companies and their products from being copied or modified in the market—which can deceive the consumers. Ultimately, the law outlines the procedures and conditions for trademark registration, along with the terms of the agreement, in Indonesia. The country recently made strides to punish companies which are using established trademarks without permission.
If you are a foreign investor, you have to pay attention clearly to this law especially because Indonesian policies might be different from your country of origin. This is to help you avoid getting into trouble in a foreign setting.
This law covers the regulatory compliance set for the registration of foreign startups in Indonesia. The investment law outlines the terms of registration and the procedures of foreign company application in the country.
Indonesian Company Law
It is the primary law that governs the overall regulatory compliance for all companies in Indonesia. This law details the laws and provides a clear description of the different regulatory processes each company should follow. Basically, the Indonesian Company Law is the summary of articles which give the government authority over the businesses operating in the country.
Who Are the Regulatory Bodies in Indonesia?
The Indonesian government is composed of many ministries and regulatory bodies, which the secretarial firms are familiar with. They are in charge of looking over the whole country. Some of them are tasked with monitoring business activities in Indonesia.
Financial Services Authority of Indonesia
It is responsible for the financial services sector, making sure the industry is protecting the interest of its clients and the general public. The agency should ensure a regular, fair, and transparent operations and management among financial services companies.
Ministry of Trade
This agency is the repository of the annual audited financial reports of the limited liability companies in Indonesia.
Capital Markets Investment Board
The board is responsible for monitoring all the investments in the capital market. It also provides licenses to certain types of business being set up in Indonesia.