How to hire a company secretary in Malaysia and should you consider a freelancer?

What’s the first thing that comes to mind with the words ‘company secretary’? Usually, it is of an assistant filing away the company records. But that may not always be the case. The days of company secretaries only being administrative heads are now long gone. Especially in Malaysia, an illustrious country that has taken Asia by stride with its economic growth. In fact, Malaysia now has one of the most developed economies of the southeast Asian subcontinent. With modern technology and easy business laws, Malaysia has attracted investors from all over.

This is because the country allows for 100% ownership of the business by foreign owners. Moreover, the rate of corporate tax imposed is also quite low. The most common legal structure for businesses to take in Malaysia is that of the Private Limited Company. Known as “Sendirian Berhad” in Malaysia, it has the following conditions attached to its registration:

The requirements to form a company or opening a company are:

• At least one shareholder
• At least one director, who is a resident of Malaysia
• A licensed* company secretary (must also be a resident of Malaysia)

The company secretary must have one of the following qualifications in order to be licensed by the SSM:

• Chartered Secretary affiliated with the Malaysian Institute of Chartered Secretaries and Administrators
• Chartered Accountant affiliated with the Malaysian Institute of Accountants
• A lawyer who has passed the Malaysian Bar

While most think that company secretaries have a rather a simple job in Malaysia that is not the case. In fact, it is a senior position with several responsibilities. Some of these responsibilities being legal ones. As such, the same person can’t be both the director as well as the secretary. In Malaysia, a company secretary is an officer of the board and has the following responsibilities:

• Advice the board on company decisions
• Ensure the company complies by the regulations set by the SSM
• Hold the company seal
• Liaise between external parties and the company
• Organize all meetings with the board

But where would you look in order to hire a company secretary? You may look at the listing the SSM has for their license secretaries and contact them. Alternatively, you may even contact the MIA and the MIASCA for their listings.

Alternatively, you may find a freelance secretary who has the required qualifications. For this, you may peruse Malaysia’s freelancing platforms for secretaries who have their services listed. There are several advantages to hiring a freelance secretary. However, as with any freelancer, there are disadvantages as well.

Pros of hiring a freelance secretary

They are specialized and experienced?

Freelance secretaries often have experience at former companies and have now decided to operate on their own. Thus, they are also specialized and confident in the skills they have to offer.

They have the ability to produce better work?

Freelance secretaries have their hours listed and work according to them. As such, they have the ability to produce higher quality work because they are well in tune to how their schedule works.

They cost less to hire?

In general, freelancers cost less to hire because they are not affiliated with an agency. Moreover, they will only have to be paid for the hours they work.

Cons of hiring a freelance secretary

They may choose to leave?

They are not bound by a long-term contract, as such, freelance secretaries may choose to leave to a different company if they wish.

There is a risk at the beginning?

As with any freelancer, hiring a freelance secretary may pose an initial risk at the beginning that you have to take.

However, regardless of whether you hire a freelance secretary or an affiliated secretary, you will need to hire one within the stipulated time the SSM has sent. Once you’ve made your decision from where to hire your company secretary, you may have a list of suitable candidates. During the interview process, you may want to vet your candidates for the following qualities:

• Leadership qualities, including being able to take initiative. They will also need to manage a team.
• Strong knowledge of business law, market trends and the current state of the economy.
• Willingness to learn about the company and invest time into it.
• Adaptability and time management skills. Secretaries will often have concurrent tasks that need to be completed.
• Strict adherence to detail. The SSM has deadlines that need to be met, otherwise penalties may be imposed. As such, the company secretary should adhere to these deadlines and submit all reports with due diligence.
• Strong communicative skills. This should include a mastery of the English language and command of the other local languages present in Malaysia.