When do I Outsource my Company Secretarial Function and when Should it be in House? 

Introduction 

A Company Secretary (CoSec) plays a crucial role in ensuring businesses comply with legal and governance requirements. Whether to keep this function in-house or outsource it is a key decision for companies of all sizes. The right approach depends on several factors, including cost, expertise, and operational needs. This article explores the benefits and challenges of both in-sourcing and outsourcing, helping businesses determine the best fit for their requirements. 

Understanding the company secretarial function 

The CoSec function is responsible for corporate governance, regulatory compliance, and administrative duties. These include: 

• Filing statutory documents and maintaining company records. 

• Ensuring compliance with regulatory bodies such as ASIC/ ASX / APRA in Australia. 

• Advising the board on governance matters. 

• Managing shareholder communications and annual general meetings. 

For companies operating in multiple jurisdictions or highly regulated industries, a strong CoSec function is essential to avoid penalties and maintain good corporate standing. 

In-house company secretarial function 

What does in-house mean? 

An in-house company secretarial function means that a company appoints an internal Company Secretary or governance team to manage its corporate compliance, reporting obligations, and board support. Having this function in-house allows the board and executive team to maintain direct oversight, control, and alignment with the organisation’s strategic and governance priorities.

Advantages of in-sourcing 

• Full control: Companies have direct supervision over compliance and governance. 

• Alignment with business strategy: An internal CoSec understands company culture and long-term objectives. 

• Immediate access: In-house professionals are readily available for urgent matters. 

Disadvantages of in-sourcing 

• Higher costs: Salaries, training, and benefits for a qualified CoSec can be expensive. 

• Administrative burden: Managing governance internally adds to workload. 

• Potential skill gaps: Regulations change frequently, requiring ongoing training and expertise. 

• Access Gaps: Annual leave / sick leave, information gaps when your CoSec is not available.  
  
  

Outsourcing your company secretarial function 

What does outsourcing mean? 

Outsourcing involves engaging an external firm or specialist to handle CoSec responsibilities. This approach is well-suited to businesses that need access to specialist expertise and scalable support without the overheads of a full-time, in-house team. It ensures ongoing compliance with the Corporations Act 2001 (Cth) while allowing directors to focus on strategic priorities, knowing their obligations are being professionally managed.

Advantages of outsourcing 

• Cost-effective: Businesses pay for services as needed, reducing overheads. 

• Access to expertise: Outsourcing providers have specialists with up-to-date regulatory knowledge across a wealth of industries not just one focus. 

• Reduced risk: Compliance obligations are managed by professionals, minimising errors and penalties.

• Seamless service: No need to be concerned about annual or sick leave gaps in knowledge as a team is always available to service compliance requirements. 

Disadvantages of outsourcing 

• Less control: Companies may have less direct influence over governance processes. 

• Onboarding time: External providers may not fully understand internal business strategies immediately. 

• Dependence on third parties: Businesses rely on external firms to meet critical deadlines. 
  
  

Key factors in making the decision 

When deciding whether to in-house or outsource, businesses should consider:

• Company size and growth stage: Larger organisations may require an internal team, while smaller firms benefit from outsourcing. 

• Regulatory complexity: Highly regulated industries may need dedicated in-house expertise. 

• Budget considerations: Outsourcing can reduce fixed costs, whereas in-house teams require ongoing investment. 

• Internal expertise: If the company lacks experienced professionals, outsourcing provides access to skilled specialists. 

• Scalability: Outsourcing offers flexibility as businesses grow and enter new markets. 
  
  

Practical steps to make the right choice 

• Conduct a cost-benefit analysis comparing in-house and outsourced options. 

• Assess current and future compliance needs. 

• Research outsourcing providers to find a partner with relevant expertise. 

• Ensure a smooth transition if shifting from in-house to outsourced services. 
  
  

Why consider Automic as your outsourced Company Secretary? 

1. Benefit from best practice
   We draw on insights from many industries to offer approaches that work. Instead of starting from scratch, you can adopt proven methods that save time and deliver reliable results.
   
   
2. Convenience and unified services
   We offer one point of contact for governance, finance, investor relations, and ESG. This means no more juggling multiple advisers or receiving conflicting advice. We go beyond meeting basic regulations, partnering with you to plan for growth and address your unique needs.
   
   
3. Work smarter
   Our technology and streamlined processes free you from repetitive tasks and reduce overheads. You’ll keep tighter control over operations while saving your team’s energy for high-impact work.
   
   
4. Maximise Investor and shareholder value
   Our solutions connect seamlessly with our Share Registry, Fund Management, and Employee Share Plan platform. By consolidating these services, we help you strengthen investor confidence and drive meaningful growth for your business.
   
   

 Conclusion 

The choice between in-sourcing and outsourcing the CoSec function depends on a company’s needs, budget, and regulatory environment. In-house teams provide direct control, while outsourcing offers flexibility and cost savings. For many businesses, a hybrid approach delivers the best of both worlds. 

For expert company secretarial support tailored to your business, Automic Group offers comprehensive solutions. Contact the Automic Sales Team to discuss how they can support your governance and compliance needs or learn more about their Company Secretarial Services.