CORPORATE SERVICES

CORPORATE SERVICES: AN OVERVIEW

In today’s complex and demanding corporate environment, businesses are prompted to have sound internal processes and systems to ensure smooth and successful operations that will reflect on their external-facing activities. On top of an entity’s core business functions, attention and resources are accordingly allocated to other corporate requirements.

Corporate services cover several segments of a corporate entity’s operations, ranging from administrative functions in human resources, legal services or compliance, communications and finance, to name a few.

Such services can be outsourced for several reasons; one, there may be a lack of workforce; two, lack of resources for an in-house corporate service team; three, the company would want to minimise administrative workload; four, the entity requires the assistance of professionals. Corporate entities can take advantage of these back-office support solutions to focus on their core business activities.

A corporate service provider consists of teams of professionals with expertise in specific business functions, ensuring accuracy, timeliness and efficiency of business support activities.

Partnering with a third-party corporate service provider can be a valuable consideration for many organisations. With the already demanding nature of achieving corporate strategies and goals, having the support of professionals specialising in those functions can significantly lift the weight of administrative and compliance matters.

For instance, a corporate service provider can assist in company formation (even in foreign markets). This can be a rigorous process with numerous requirements that may be easily overlooked. These professionals can not only outline these processes in detail but also facilitate the entire process, especially if they are a local in the market.

Moreover, corporate service providers help entities standardise recurring tasks and procedures, resulting in more streamlined operations and reducing error risks as well as time spent in the preparation of periodic requirements.

Corporate service providers can deliver diverse services to several types of businesses, regardless of the size and industry. Depending on the structure, activities or requirements imposed on an organisation, the providers can offer bespoke solutions:

- Company formation and structuring - Preparation and filing of company applications to relevant agencies

- Provision of a registered office

- Tax registration

- Maintenance of statutory registers and records

- Communication with supervisory bodies

- Preparation of board and annual meeting documents

- Bank account opening and arrangement

- Assessment of relevant laws and regulations in a jurisdiction

- Periodic management reporting

- Monthly, quarterly and /or annual preparation and review of management accounts

- Consolidated reporting

Apart from these, corporate services also involve solutions that cover other business functions like procurement and information and communication technology.

These include:

- Development of procurement policies

- Processing and management of procurement systems

- Vendor contract management

- Facilities or asset management

- Office services and solutions

- Periodic IT reviews

- Set up and management of IT hardware

Our experts in different jurisdictions assist clients in achieving operational and market entry success.

To keep up with the demands of a more digital financial market, corporate service providers have integrated technology into their business offerings. Innovative efforts to incorporate technology with the use of the internet and automation have made it easier for corporate service providers to deliver their solutions efficiently with transparent and accessible data ready for client review.

For instance, digital tools and software are utilised for easy access to data, automated maintenance of records and calculations of payroll and taxes, among others. Another use of technology in corporate services is the ease of correspondence between service providers and clients with online platforms.

On the other hand, governments in various jurisdictions have taken measures to ease business formation processes and lift administrative burdens for market players through the use of technology. Business filings and registration procedures can be done through online portals. However, in certain jurisdictions (e.g., Singapore), only registered and qualified individuals are allowed to utilise such online portals or transaction systems. Corporate service providers can assist in the provision of these corresponding individuals.

* COMPANY FORMATION SERVICES

Entity formation involves complex processes and requirements, procedures which corporate service providers with local expertise and focus can simplify. The varying company formation requirements in local and foreign jurisdictions make compliance a challenging task. In addition, keeping up with the rapid development of policies and regulations can be demanding.

Professional company formation service providers enable clients to be aware of matters that would ensure a firm foundation and head start for setting up a business.

These include:

- Orientation on relevant legislation according to the type of business, industry and jurisdiction

- Procedures associated with company formation

- Timeline of structuring

- Accompanying costs of forming the company

- Permits and licenses required

* MARKET ENTRY SERVICES

Entering a foreign market is a rigorous process, especially in jurisdictions where entities may not be familiar with local business processes. Similar to company formation services, market entry services ensure an entity complies with regulations and procedures necessary to operate in a new market. However, market entry as a corporate service also involves support and advisory services for organisations that are looking to start up, scale up or relocate their business into new markets.

Corporate service providers can establish a representative office in a foreign market on behalf of an organisation. For those looking to proceed with their operations in a foreign market, the provision of office space and the facilities necessary to develop a functional work environment can also be facilitated with market entry services.

In line with this are corporate relocation services, which include assistance in coordination, arrangement of moving into a new office or market and even staffing. Professional corporate relocation solutions can make sure that resources are maximised and employees are productive and satisfied with the facilities.

To certify the success of market entry, the development of an attainable business model and the implementation and management of projects are taken care of. Aside from the technical matters with regard to the financial, legal or fiscal concerns in penetrating a foreign market, corporate service providers also have the expertise in the local business culture, language and practices to help clients familiarise themselves with the new market.

* SECRETARIAL SERVICES

Corporate secretarial services go hand in hand with the abovementioned services for the successful formation and post-establishment maintenance of a corporate entity. Secretarial services cover one-time and periodic requirements essential in the mitigation of compliance and administrative risks.

In addition to the corporate services mentioned in a previous section, other secretarial services are:

- Filing of name or company address changes

- Preparation of appointment and resignation filings of company directors

- Maintenance of information regarding annual accounts and tax returns

- Liaising with investors and employees

It is crucial for a secretarial service provider to have an expert knowledge of current legal structures and the ability to adapt to relevant regulatory changes.

We now know that corporate service providers assist in the essential parts of an organisation’s administrative operations. In today’s fast-paced markets, private and corporate clients benefit from corporate services to administer these corporate matters.

* TAILOR-FIT SUPPORT FROM EXPERTS

Another significant benefit of working with a corporate service provider is their ability to customise their services to the specific needs of an organisation. These professionals are well aware of the regulations applicable to the corporate entity and take the necessary steps to make their clients understand their own obligations as well.

For organisations that wish to enter a new and unfamiliar market, corporate service providers have industry and jurisdiction-specific knowledge to provide their clients with specialised market entry assistance. On the other hand, corporate solutions will also be valuable for entities that operate across different regions. This means that an international corporate service provider has multi-jurisdictional expertise on corporate needs. Arkadia Venture, for instance, has a presence in the Americas, Europe and Asia with our partners and professionals that have technical knowledge and local experience in their respective jurisdictions.

Further illustration of the specialised solutions of corporate services can be seen through the project implementation and management solutions. With this, projects are carefully planned and executed to hit an organisation’s overall strategies and objectives. Since projects are distinct to an organisation and should be in coordination with a client’s other departments, corporate service providers ensure that the solutions that they offer are sustainable and in line with the entity’s particular needs.

* PRIVATE WEALTH SERVICES

While corporate players utilise the solutions of corporate service providers in their company formation, market entry, and other business support needs, they can additionally engage on private wealth and trust services to add on to their corporate and portfolio strategies.

Employing these services on top of corporate solutions can further ensure the sustainability and focused management of corporate wealth and assets. Moreover, the complexities and risks present with the administration of trusts can be especially addressed.

Like corporate services, company formation and management, financial accounting and reporting and governance solutions are offered in private wealth and trust services.

In addition, it can include:

- estate and multigenerational planning;

- family offices services;

- philanthropic strategies planning and implementation; and other investment management solutions.

Taking on these various services is determined by the particular needs of an organisation. Nevertheless, corporate clients can gain advantage from the respective middle- and back-end support provided by corporate service providers, fund administrators, compliance officers and administrators and private wealth and trust managers.

Having the right partner to lead and take on these roles can bring significant value to an organisation’s objectives, maximise resources and provide the space to focus on core business functions.