In today’s complex and demanding corporate environment, businesses are prompted to have sound internal processes and systems to ensure smooth and successful operations that will reflect on their external-facing activities. On top of an entity’s core business functions, attention and resources are accordingly allocated to other corporate requirements.
These put outsourced corporate services in high demand and will continue to be so in the coming years. According to a report by Adroit Market Research, the trust and corporate service industry is projected to reach an overall market size of $15.5 billion by 2029 with an annual growth rate of 5.7 per cent.
In this article, we delve into what corporate services are and the need for these business solutions.
What are corporate services?
Corporate services cover several segments of a corporate entity’s operations, ranging from administrative functions in human resources, legal services or compliance, communications and finance, to name a few.
Such services can be outsourced for several reasons; one, there may be a lack of workforce; two, lack of resources for an in-house corporate service team; three, the company would want to minimise administrative workload; four, the entity requires the assistance of professionals. Corporate entities can take advantage of these back-office support solutions to focus on their core business activities.
The need for corporate services
A corporate service provider consists of teams of professionals with expertise in specific business functions, ensuring accuracy, timeliness and efficiency of business support activities.
Partnering with a third-party corporate service provider can be a valuable consideration for many organisations. With the already demanding nature of achieving corporate strategies and goals, having the support of professionals specialising in those functions can significantly lift the weight of administrative and compliance matters.
For instance, a corporate service provider can assist in company formation (even in foreign markets). This can be a rigorous process with numerous requirements that may be easily overlooked. These professionals can not only outline these processes in detail but also facilitate the entire process, especially if they are a local in the market.
Moreover, corporate service providers help entities standardise recurring tasks and procedures, resulting in more streamlined operations and reducing error risks as well as time spent in the preparation of periodic requirements.
Corporate service providers can deliver diverse services to several types of businesses, regardless of the size and industry. Depending on the structure, activities or requirements imposed on an organisation, the providers can offer bespoke solutions:
Apart from these, corporate services also involve solutions that cover other business functions like procurement and information and communication technology. These include:
- Development of procurement policies
- Processing and management of procurement systems
- Vendor contract management
- Facilities or asset management
- Office services and solutions
- Periodic IT reviews
- Set up and management of IT hardware
One of Bolder Group’s main service offerings is its corporate secretarial services. Our experts in different jurisdictions assist clients in achieving operational and market entry success.
To keep up with the demands of a more digital financial market, corporate service providers have integrated technology into their business offerings. Innovative efforts to incorporate technology with the use of the internet and automation have made it easier for corporate service providers to deliver their solutions efficiently with transparent and accessible data ready for client review.
For instance, digital tools and software are utilised for easy access to data, automated maintenance of records and calculations of payroll and taxes, among others. Another use of technology in corporate services is the ease of correspondence between service providers and clients with online platforms. Bolder Group has a publicly accessible page that assists interested clients to send in information to kickstart the initial steps of structuring a company or SPV.
On the other hand, governments in various jurisdictions have taken measures to ease business formation processes and lift administrative burdens for market players through the use of technology. Business filings and registration procedures can be done through online portals. However, in certain jurisdictions (e.g., Singapore), only registered and qualified individuals are allowed to utilise such online portals or transaction systems. Corporate service providers can assist in the provision of these corresponding individuals.
Corporate services – definitions and associated activities
Corporate entities require solutions tailored to their needs. Bolder Group, as mentioned, offers these solutions, which are personalised to make sure that clients are in control of all segments of their organisation.
To better understand how corporate service providers assist organisations in their back-office needs, here is a more detailed guide to primary corporate solutions:
Company formation services
Entity formation involves complex processes and requirements, procedures which corporate service providers with local expertise and focus can simplify. The varying company formation requirements in local and foreign jurisdictions make compliance a challenging task. In addition, keeping up with the rapid development of policies and regulations can be demanding.
Professional company formation service providers enable clients to be aware of matters that would ensure a firm foundation and head start for setting up a business. These include:
- Orientation on relevant legislation according to the type of business, industry and jurisdiction
- Procedures associated with company formation
- Timeline of structuring
- Accompanying costs of forming the company
- Permits and licenses required
Market entry services
Entering a foreign market is a rigorous process, especially in jurisdictions where entities may not be familiar with local business processes. Similar to company formation services, market entry services ensure an entity complies with regulations and procedures necessary to operate in a new market. However, market entry as a corporate service also involves support and advisory services for organisations that are looking to start up, scale up or relocate their business into new markets.
Corporate service providers can establish a representative office in a foreign market on behalf of an organisation. For those looking to proceed with their operations in a foreign market, the provision of office space and the facilities necessary to develop a functional work environment can also be facilitated with market entry services.
In line with this are corporate relocation services, which include assistance in coordination, arrangement of moving into a new office or market and even staffing. Professional corporate relocation solutions can make sure that resources are maximised and employees are productive and satisfied with the facilities.
To certify the success of market entry, the development of an attainable business model and the implementation and management of projects are taken care of. Aside from the technical matters with regard to the financial, legal or fiscal concerns in penetrating a foreign market, corporate service providers also have the expertise in the local business culture, language and practices to help clients familiarise themselves with the new market.
Corporate secretarial services go hand in hand with the abovementioned services for the successful formation and post-establishment maintenance of a corporate entity. Secretarial services cover one-time and periodic requirements essential in the mitigation of compliance and administrative risks.
In addition to the corporate services mentioned in a previous section, other secretarial services are:
- Filing of name or company address changes
- Preparation of appointment and resignation filings of company directors
- Maintenance of information regarding annual accounts and tax returns
- Liaising with investors and employees
It is crucial for a secretarial service provider to have an expert knowledge of current legal structures and the ability to adapt to relevant regulatory changes. As a corporate service provider with a global team of professionals, Bolder Group, for instance, can provide expert support for organisations in various jurisdictions.
Corporate payroll services generally comprise of the calculation, reporting and payment of an organisation’s payroll. Some of the activities associated with this corporate service are as follows:
- Customisation and setup of payroll system
- Gross-to-Net calculation
- Salary processing
- Tax calculation, filing and payments
- Distribution of pay slips
- Pension deductions
The payroll solutions from corporate service providers can be tailor-made for the needs and internal systems of an organisation, while maintaining compliance with relevant reporting and filing requirements. With this service, entities can save money from setting up and developing in-house payroll team and systems.
Financial accounting and reporting services
Keeping up with numerous accounting and bookkeeping obligations through in-house resources can be cumbersome, especially for corporate entities that operate in various jurisdictions. However, delivering fiscal obligations is a critical aspect of corporate governance and compliance.
Corporate service providers can administer external and internal financial accounting services in an accurate and timely manner. Moreover, they are fully aware of the relevant accounting standards (e.g., local GAAP or IFRS) applicable for certain jurisdictions.
Aside from the provision of routine financial statements, they can also generate other financial reports for communication between internal stakeholders. For example, an organisation’s management team may need financial reports regarding organisation-specific trends or sales, which may not be directly acquired from the main financial reports.
Why work with a corporate service provider?
We now know that corporate service providers assist in the essential parts of an organisation’s administrative operations. In today’s fast-paced markets, private and corporate clients benefit from corporate services to administer these corporate matters.
Need a bit more convincing? Read below:
Be aware of and manage risks
With the help of professional corporate service providers, the obligations associated with an organisation’s business endeavours can be promptly recognised and attended to. Whether that be legal, administrative or operational responsibilities, these professionals have the expertise to continuously meet and surpass the necessary processes that govern an entity.
For instance, corporations are obliged to hand in legal documents in a timely and thorough manner. Corporate and secretarial solutions ensure that corporations are compliant with these legal responsibilities and the strict deadlines that come with them, avoiding fines, penalties and other legal repercussions.
Corporate service providers can also facilitate the safeguard of sensitive data, both of the organisation’s and its clients’. Providers are equipped with the tools and systems to ensure secure handling and maintenance of data.
Tailor-fit support from experts
Another significant benefit of working with a corporate service provider is their ability to customise their services to the specific needs of an organisation. These professionals are well aware of the regulations applicable to the corporate entity and take the necessary steps to make their clients understand their own obligations as well.
For organisations that wish to enter a new and unfamiliar market, corporate service providers have industry and jurisdiction-specific knowledge to provide their clients with specialised market entry assistance. On the other hand, corporate solutions will also be valuable for entities that operate across different regions. This means that an international corporate service provider has multi-jurisdictional expertise on corporate needs. Bolder Group, for instance, has a presence in the Americas, Europe and Asia with professionals that have technical knowledge and local experience in their respective jurisdictions.
Further illustration of the specialised solutions of corporate services can be seen through the project implementation and management solutions. With this, projects are carefully planned and executed to hit an organisation’s overall strategies and objectives. Since projects are distinct to an organisation and should be in coordination with a client’s other departments, corporate service providers ensure that the solutions that they offer are sustainable and in line with the entity’s particular needs.
Gain competitive advantage
Enlisting the help of corporate services enables an organisation to allocate its valuable resources to its core activities and functions. In this regard, entities can also expect that the assistance of corporate service providers will lead to the reduction of administrative burden, minimal downtime, error-free administration of tasks and that the organisation will always be due diligence ready.
In addition, the numerous and complex elements present with corporate administrative activities are duly prepared for and streamlined to ensure that there will be no interruption to the organisation’s main operations. The burden of keeping up with these activities and obligations can relieve internal teams and systems, developing a work system that enables them to focus on the areas where they could contribute the most value.
To sum up, corporate service providers are expected to deliver quality and professional services for the overall gain of an organisation. The benefits of taking on the assistance of professional and qualified corporate services providers should be considered by corporate entities and market participants to ensure and boost their organisational success.
Related solutions to corporate services
As established, corporate services generally facilitate specialised corporate business activities through tailor made solutions. Outsourced business solutions provide similar assistance and benefits to corporate players; governance, compliance solutions, regulatory planning, to name a few, are services that facilitate and target an organisation’s other non-core business needs, as corporate services do.
Corporate services and its associated activities ensure that compliance matters are taken care of. This is done through the accomplishment of company formation requirements, submission of periodic filings and fiscal obligations, as stated in previous sections above.
On top of this, corporate clients can also avail of other governance and compliance solutions, especially to address distinct company or industry-specific compliance issues. Financial institutions, for example, are subject to Know Your Customer (KYC) requirements and will need to take on professional compliance solutions.
As a global compliance service provider, Bolder Group has compliance specialists who can assist various clients such as corporate and private entities, asset managers, brokers, art dealers, realtors, as well as organisations engaging with crypto assets. The distinct compliance requirements for these clients can be accommodated through bespoke solutions other than corporate services.
Private wealth services
While corporate players utilise the solutions of corporate service providers in their company formation, market entry, and other business support needs, they can additionally engage on private wealth and trust services to add on to their corporate and portfolio strategies.
Employing these services on top of corporate solutions can further ensure the sustainability and focused management of corporate wealth and assets. Moreover, the complexities and risks present with the administration of trusts can be especially addressed.
Like corporate services, company formation and management, financial accounting and reporting and governance solutions are offered in private wealth and trust services. In addition, it can include:
- estate and multigenerational planning;
- family offices services;
- philanthropic strategies planning and implementation; and
- other investment management solutions.
Taking on these various services is determined by the particular needs of an organisation. Nevertheless, corporate clients can gain advantage from the respective middle- and back-end support provided by corporate service providers, fund administrators, compliance officers and administrators and private wealth and trust managers.
Having the right partner to lead and take on these roles can bring significant value to an organisation’s objectives, maximise resources and provide the space to focus on core business functions.
Bolder Group as your corporate services provider
Today’s demanding corporate landscape calls for a professional and experienced corporate service provider. Bolder Group offers corporate solutions tailored to the client’s needs and in accordance with other relevant considerations.
Through our corporate services, we keep our clients ahead of local and international affairs to successfully navigate today’s competitive business environment.
Contact your nearest Bolder Group office to know more about our corporate services for SMEs and multinationals.