WHEN DO YOU NEED TO ENGAGE A CORPORATE SERVICE PROVIDER?
Entrepreneurship is what we commonly understand as the process of creating a new enterprise and bearing any of its risks, with the view of making a profit. However, there are certain challenges an entrepreneur or a corporate need to deal with when they perform their businesses.
A corporate service provider (CSP) could definitely assist in most areas of company structures and mitigate many challenges faced by an entrepreneur or any type of business. These challenges are usually in the form of one or more of the following factors:
1) Insufficient Knowledge & Experiences
There will always be new rules and regulations, changes to policies, updates on procedures, etc. CSP focuses on research, study, and analyze all of this information daily. These daily routines train CSP to be very specialized in handling all the paperwork needed that complies with government regulations. Do you think it will be easy to remember, prepare all the documents and be as effective to implement as a corporate service provider?
2) Business Operational Costs
Administrative, Human Resource, Accounting, and many different roles are essential to ensure a smooth company business operation. There are even other costs such as office & IT equipment, technology subscriptions and etc. All of these costs, unfortunately, do not generate any sales to the company. CSP covers most of the essential roles and activities in a company. Imagine if you need to hire one person for each role such as administrative, human resource, and accounting. Do you think these expenses will be as cost-effective as a corporate service provider?
3) Limited Time
No matter which industry a business is in, it is very important for any entrepreneur or company to focus its time to research, analyze and come up with a strategy to increase its revenue. Do you think you have sufficient time to develop your business and generate enough revenue?
HOW DOES A CORPORATE SERVICES PROVIDER HELP YOU?
A corporate service provider (CSP) is a professional business entity that has a professional license issued by the government to assist any company with its administrative, human resource, and financial activities. The corporate service provider needs to ensure that these company’s activities comply with the relevant government body and its latest rules and regulations.
A new business needs to understand the type of entity it wants to register itself into – Sole Proprietorship, Partnership, Limited Liability Company, etc.
Company Secretarial Service
A secretarial service ensures good governance, effective administration, and compliance with legislation, laws, and regulations that govern business and industry.
Financial support from the government through manpower upskilling, digital technology adoption, and business expansion support.
HR & Payroll
An HR system allows good tracking and accurate records in terms of recruitments, annual leaves, salary, CPF contributions, etc.
License & Permit Application
A company/business requires a specific business & other government licenses to operate – Business License, Occupational License & Business Activity License.
A professional requires government permits to work in the company – EP, S-Pass, WP.
Bridging helps businesses to assess and form meaningful business relationships through a wide network of professional firms and industry partners.
A tax filing is form filed to the authority to report corporate/individual income, expenses and other pertinent tax information.
A corporate/individual needs to have a good knowledge of accounting methodology to maintain accurate records and to keep financial and tax submissions in compliance with appropriate rules. The common types of accounting principles & standards includes Generally Accepted Accounting Principles (GAAP), and International Financial Reporting Standards (IFRS) and the Internal Revenue Code (IRC).
It is a professional service rendered to review of the accuracy and integrity of the corporate financial statements or services that complies with the government regulatory.
There can be many different areas a Corporate Service Provider (CSP) can provide a company with. The experiences and expertise CSP have will definitely help any company to ease its non-generating revenue work load. In return, the company can allocate more of its resources to its business development area for more growth. On that final note, take more time to understand and analyze in which area(s) your company’s operation needs help with and carefully weigh the opportunity costs before you engage CSP. Here is the link if you would like to know more.