A company secretary holds a pivotal role in managing the corporate governance of an organisation. Their duties ensure that the company adheres to statutory and legal requirements while also offering guidance to the board of directors. There are two main avenues for a company secretary: they can either be in employment or in practice. Both roles hold distinct responsibilities and needs that cater to different aspects of a company’s functioning.
In this article, we will explore the differences, responsibilities, and requirements of company secretaries in practice and employment. We will also discuss the advantages and disadvantages of each role and how Bajaj Finserv Chartered Accountant Loan can assist professionals who are looking to establish their practice as company secretaries.
Company Secretary in Employment
A company secretary in employment is an essential part of a company’s internal team. They primarily focus on ensuring compliance with corporate regulations and liaising with government bodies. Employed company secretaries usually work in large-scale companies with capital exceeding INR 5 crores, where their responsibilities include maintaining statutory registers, overseeing governance procedures, and offering advice to directors and shareholders. They are crucial for companies listed on stock exchanges and help ensure that all necessary filings are made on time.
This role also involves organising board meetings, preparing agendas, and drafting minutes. Company secretaries in employment are well compensated and enjoy the stability of a structured job environment. They also have the added benefit of career growth within the organisation.
Company Secretary in Practice
A company secretary in practice operates independently or as part of a consulting firm. Their role surpasses that of an employed company secretary because they provide expert advice to various companies. They help businesses comply with the Companies Act, 2013, manage legal documentation, and handle tax filings.
Being in practice gives company secretaries the flexibility to work with multiple clients across industries, allowing them to expand their expertise and portfolio. However, it requires self-discipline, entrepreneurial spirit, and marketing skills to attract and retain clients.
What Are the Responsibilities of a Company Secretary in Practice?
Some of the major responsibilities of a company secretary in practice include:
- Filing various e-forms and returns with the Registrar of Companies (ROC)
- Conducting secretarial audits and ensuring corporate compliance
- Handling the incorporation of companies
- Managing shareholder agreements and board resolutions
- Offering expert advice on legal and governance issues
- Ensuring timely annual return filings and statutory compliance
Annual Return Filing
A company secretary in practice ensures that annual return filings are done in a timely manner to avoid penalties. These returns include essential company details such as shareholding patterns, financial statements, and board changes.
Secretarial Audit Report
The secretarial audit is another key responsibility of a practising CS, ensuring that companies follow applicable laws and regulatory standards. Failure to comply can result in penalties and legal issues for the company.
Major Need for Company Secretary in Practice
There is a growing demand for company secretaries in practice due to the increasing number of regulatory frameworks that companies must adhere to. Some major needs include:
- Compliance with the Companies Act, 2013
- Managing mergers, acquisitions, and legal restructurings
- Offering consultancy for business expansions
- Handling legal disputes and ensuring litigation-free operations
For those looking to establish their practice, obtaining financial support can be crucial. Bajaj Finance offers Chartered Accountant Loan options that help professionals set up their independent practices with ease.
Advantages & Disadvantages of CS in Employment
| Advantages | Disadvantages |
| Stability of a full-time job | Limited to one company |
| Fixed salary and benefits | Lesser flexibility in work schedules |
| Growth opportunities within a company | Limited scope for expanding expertise |
| Job security and structured environment | Relatively fewer networking opportunities |
Advantages & Disadvantages of CS in Practice
| Advantages | Disadvantages |
| Flexibility to work with multiple clients | Requires an entrepreneurial mindset |
| High earning potential based on clientele | Income may fluctuate |
| Greater autonomy and decision-making | Marketing skills needed to attract clients |
| Expands experience across industries | Heavy reliance on networking |
Life after being employed as a Company Secretary
Being a company secretary is a role of significant influence, where your opinions carry weight and your decisions shape the company’s trajectory. This pivotal position ensures the smooth operation of the organisation and steers it toward success. When the company thrives and progresses seamlessly, it brings a profound sense of accomplishment and fulfilment to your work. Additionally, advancements in technology are expected to simplify documentation processes, enhancing the efficiency of a company secretary's responsibilities and broadening their professional scope.
In today’s highly competitive corporate environment, where workplace stress and pressure are common, the role of a company secretary offers a more balanced and less deadline-driven atmosphere. This relaxed setting allows for optimal performance and productivity, fostering job satisfaction. As a result, being a company secretary not only contributes to the organisation’s success but also helps alleviate the mental strain often associated with modern work environments.The role of a company secretary, whether in practice or employment, is critical for the seamless functioning of a company’s legal and corporate governance framework. Those in practice have the added flexibility of working with multiple companies, but with that comes the need for self-discipline and entrepreneurial skills.
Conclusion
If you are considering venturing into practice, securing financial backing can make a significant difference. Bajaj Finance provides tailored solutions through its CA Loan to help you establish your firm. With the right support, the path to building a successful career in practice becomes smoother.
