Company Secretary, Auditor & Tax Agent: Do They Need to Be Under One Roof?
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Company Secretary, Auditor & Tax Agent: Do They Need to Be Under One Roof?
When setting up or running a company in Malaysia, many business owners assume that the Company Secretary, Auditor, and Tax Agent must be appointed from the same firm. However, this is not a requirement.
The Company Director(s) have the authority to appoint different professional service providers according to the company’s needs. The Company Secretary, Auditor, and Tax Agent may be from the same firm or from separate firms.
Different Roles, Different Responsibilities
Although these three parties are often involved in a company’s compliance matters, their roles are different:
1. Company Secretary
The Company Secretary is responsible for ensuring the company complies with statutory requirements, including:
The Company Secretary acts as the company’s compliance officer and corporate governance advisor.
2. Auditor
The Auditor provides an independent review of the company’s financial statements to ensure that they are prepared in accordance with applicable accounting standards and statutory requirements. The Auditor must remain independent and should not be involved in preparing the company’s accounting records or financial statements in a way that affects their objectivity.
3. Tax Agent
The Tax Agent assists the company with tax-related matters, including:
The Tax Agent focuses on taxation matters, which are separate from company secretarial and audit responsibilities.
Why Do Some Companies Choose Different Firms?
Appointing different firms for each role can provide several advantages:
For example, a company may appoint one firm as Company Secretary, another firm as Auditor, and a separate tax agent who specialises in tax planning.
Why Do Some Companies Choose One Firm?
Some companies prefer a “one-stop solution” because it is more convenient. Having Company Secretary, Audit, and Tax services under one roof may simplify communication and document coordination.
However, convenience does not mean that all services must come from the same provider.
Conclusion
There is no legal requirement for a Malaysian company to appoint its Company Secretary, Auditor, and Tax Agent from the same firm. Directors have the freedom to select suitable professionals based on the company’s requirements, expertise, independence, and service quality.
The most important consideration is not whether the services are under one roof, but whether each appointed professional can provide reliable, independent, and quality support to the company.
When setting up or running a company in Malaysia, many business owners assume that the Company Secretary, Auditor, and Tax Agent must be appointed from the same firm. However, this is not a requirement.
The Company Director(s) have the authority to appoint different professional service providers according to the company’s needs. The Company Secretary, Auditor, and Tax Agent may be from the same firm or from separate firms.
Different Roles, Different Responsibilities
Although these three parties are often involved in a company’s compliance matters, their roles are different:
1. Company Secretary
The Company Secretary is responsible for ensuring the company complies with statutory requirements, including:
- Maintaining company statutory records.
- Preparing and lodging documents with Suruhanjaya Syarikat Malaysia (SSM).
- Advising the company on corporate governance matters.
- Assisting with directors’ resolutions, share transfers, changes in company details, and annual compliance matters.
The Company Secretary acts as the company’s compliance officer and corporate governance advisor.
2. Auditor
The Auditor provides an independent review of the company’s financial statements to ensure that they are prepared in accordance with applicable accounting standards and statutory requirements. The Auditor must remain independent and should not be involved in preparing the company’s accounting records or financial statements in a way that affects their objectivity.
3. Tax Agent
The Tax Agent assists the company with tax-related matters, including:
- Corporate tax submission
- Tax compliance and planning
- Liaising with the Inland Revenue Board of Malaysia (LHDN)
- Advising on tax-related issues
The Tax Agent focuses on taxation matters, which are separate from company secretarial and audit responsibilities.
Why Do Some Companies Choose Different Firms?
Appointing different firms for each role can provide several advantages:
- Independent professional advice
- Better segregation of responsibilities
- Reduced conflict of interest
- Ability to choose specialists in each area
- More flexibility in managing professional fees
For example, a company may appoint one firm as Company Secretary, another firm as Auditor, and a separate tax agent who specialises in tax planning.
Why Do Some Companies Choose One Firm?
Some companies prefer a “one-stop solution” because it is more convenient. Having Company Secretary, Audit, and Tax services under one roof may simplify communication and document coordination.
However, convenience does not mean that all services must come from the same provider.
Conclusion
There is no legal requirement for a Malaysian company to appoint its Company Secretary, Auditor, and Tax Agent from the same firm. Directors have the freedom to select suitable professionals based on the company’s requirements, expertise, independence, and service quality.
The most important consideration is not whether the services are under one roof, but whether each appointed professional can provide reliable, independent, and quality support to the company.
