Why is Corporate Maintenance Essential?
Corporate Maintenance – A business entity’s annual obligation towards the state or local government bodies, which allows the entity to exist, is different for every country. Some countries require an entity to pay an annual fee (Argentina, New Zealand, Puerto Rico, etc.), while others require detailed reports on annual shareholders and board meetings (Canada, Romania, South Korea, etc.). Finding out corporate maintenance requirements is quite easy and straightforward. What’s difficult is maintaining the right records and taking meeting minutes. The process becomes even more complicated if you have a registered business entity in another country, and you need to keep records in two languages, i.e., host and home country of your foreign entity.
That’s where a global expansion company can help you.
How A Global Expansion Firm Helps With Corporate Maintenance In Another Country
Global expansion firms typically offer a full bouquet of services associated with the corporate maintenance requirements of a different country. It’s important to note that you might not need all the services in every country you have expanded to (or planning to expand to), but it’s usually beneficial to know all your options.
Company Secretary Services
A company secretary is tasked with many crucial duties, many of which might not be outsourced. But one company secretary responsibility that directly overlaps with the corporate maintenance requirement of most countries is that they are tasked to conduct shareholders, trustee, and board meetings. They keep records of all the noteworthy decisions taken in these meetings and points that the local regulatory body might be interested in.
By offering these services, a global expansion firm can help your foreign-registered entity comply with local corporate maintenance requirements.
Registered Office Maintenance
A registered office is your company’s corporate representation in a country. It has to comply with local laws and has to facilitate employees in every way that local businesses do. Hiring a dedicated local resource for office maintenance might be an unnecessary overhead cost and one you can dispense with by outsourcing the task to a global expansion firm. These firms have access to local resources, which makes it quite easy for them to take on this responsibility, including its faucet of corporate maintenance.
Ongoing Translation Support
When you are running an office in a different country, where all the local registration forms and documentation have to be maintained in the local language (for tax purposes mostly), translation services can prove invaluable. You can ensure that not just legal documents but corporate data and meeting notes are all available for you in the language of the corporate head office, but in the local language as well, so the business entity can meet its corporate maintenance requirement pertaining to the host country.
Another area where a global expansion firm can help is hiring local resources. Each country might require different information on the employees your business entity in their country has hired. It can include background checks, drug tests, etc. A global expansion firm, when hiring employees on your behalf in a foreign country, can ensure adherence to the country’s corporate maintenance regulations.
Compliance Requirement Updates
The most crucial service a global expansion firm can provide to your foreign-registered business is to keep you updated on the local compliance laws and requirements, including corporate maintenance. This ensures that you are always on the right side of the local laws and don’t get penalized (or suffer business interruption) because you are under the scrutiny of the local governing bodies.
There are several other things a global expansion firm might help you with. They are ideally equipped to reduce the burden of running a foreign branch/entity of your business.