Pathway to becoming a Company Secretary in India: A Comprehensive Guide

The Company Secretary ( CS ) role in India is a prestigious and much-sought after career path, integral to ensuring the smooth governance and compliance adherence of companies. Company Secretaries are legal professionals responsible for corporate governance, regulatory compliance, and advisory functions among a host of other functions.

Compliance and Corporate Governance are being prioritized by companies and governments alike, thus the demand for CS professionals is on the rise in India, making it an attractive career path for young aspirants. Here, we’ll discuss the steps to becoming a Company Secretary, along with the educational requirements, practical experience, career opportunities and scope for the profession in India.

1. Education

The Institute of Company Secretaries of India ( ICSI ) is the governing and regulatory body for Company Secretaries in India. The Company Secretary program is divided into three stages:

The first stage is the Foundation Programme, which can be pursued by an individual after completing Class 12 from a recognized board in any stream except Fine Arts. The Foundation Programme typically takes around eight months to complete and includes four papers focusing on basic business, law, and accounting principles.

Upon successful completion of the Foundation Programme, candidates move on to the Executive Programme. Alternatively, graduates from any field besides Fine Arts can directly enter this stage without completing the Foundation Programme. The Executive Programme can take around nine months to complete and consists of eight papers across two modules. Company Law, Securities Laws, Capital Markets, and Tax Laws are some of the key subjects in the Executive Programme Modules.

The final stage is the Professional Programme, which candidates can register for after passing the Executive Programme. It generally takes around ten months to complete and comprises nine papers in three modules. Subjects in this stage cover advanced topics, including Corporate Funding, Risk Management, Corporate Restructuring, and Governance.

2. Practical Experience and Training Requirements

Practical training is essential in order to qualify as a Company Secretary. ICSI has laid down specific training mandates to ensure that aspiring CS professionals acquire hands-on experience.

After completing the Executive Programme, candidates are required to undergo a 30-day c ( EDP ) followed by 21 months of practical training, which can be done either in a company or under a Practicing Company Secretary.

Additionally, candidates must complete Professional Development Programme ( PDP ) sessions, which focus on skill development in areas like communication and business etiquette. Post completion of the Professional Programme, candidates must complete the Management Skill Orientation Program, a comprehensive training program aimed at preparing them for real-world challenges that the CS career may bring forth.

Become PF & ESIC Pro: Basic to Advance Course - Enroll Today

3. Essential Skills for a Successful Company Secretary

Though completion of the requisite educational and training requirements of the CS profession is necessary, aspiring Company Secretaries also need to cultivate numerous supplementary skills to succeed in the profession.

These include a strong understanding of corporate law, compliance regulations, and governance principles. Furthermore, sharp analytical skills are rucial for evaluating legal documents and interpreting data accurately. CS professionals must also possess excellent communication skills, as they frequently interact with the key personnel of enterprises including members of the Board of Directors, regulatory bodies, and shareholders.

The stakes are always of a very high nature in the CS profession, hence CS professionals’ attention to detail should be of the highest order to be able to manage compliance accurately.

It goes without saying that ethical integrity is a non-negotiable in the profession since Company Secretaries serve as the beacon of upholding the legal and ethical standards of the company.

Become PF & ESIC Pro: Basic to Advance Course - Enroll Today

4. Career Opportunities for Company Secretaries in India

A qualified Company Secretary has diverse career opportunities across numerous sectors before them. In the corporate sector, large companies typically have an in-house CS who manages compliance, governance, and legal responsibilities of the company. Public sector enterprises and government bodies also hire CS professionals to oversee legal compliance and corporate governance.

Another lucrative avenue for CS professionals is in being employed with law firms that specialize in corporate law, compliance advisory and mergers and acquisitions.

In banking and finance, CS professionals play a vital role in handling legal and regulatory issues. With enough experience, some CS professionals even enter academia, teaching CS courses or working as corporate law professors.

5. Salary Scale and Growth Prospects for Company Secretaries

The salary for a Company Secretary varies depending on experience, location, and the organization type. An entry level CS can expect an annual salary of around ₹3.5 to ₹6 lakh.

With experience and acquiring of skills, the remuneration received by a CS grows significantly; mid-level professionals earn between Rs.8 Lakh to Rs.12 Lakh per annum.

At senior levels, such as Head of Compliance or Chief Governance Officer, annual packages can exceed ₹20 lakh with a continuous upward trajectory and is often accompanied by performance bonuses and other benefits.

Become PF & ESIC Pro: Basic to Advance Course - Enroll Today

6. The Future of the Company Secretary Profession in India

Being a Company Secretary in India is a lucrative career option; it is driven by evolving regulations and the rising importance of good corporate governance. As companies prioritize compliance to prevent legal issues, the demand for CS professionals is expected to increase.

Frameworks like the Insolvency and Bankruptcy Code (IBC) and changes in the Companies Act, 2013 are being given paramount importance in today’s economic landscape.

Other trends that will shape the future of this profession include an increased focus on Environmental, Social, and Governance (ESG) compliance. Investors increasingly demand sustainable practices from companies, hence ESG being one of the most coveted disciplines to be involved in.

Additionally, with global expansion, companies require CS professionals to be knowledgeable about international compliance, jurisdictions and governing laws therein.

7. Practicing as a Company Secretary

Some Company Secretaries choose to practice independently rather than work as in-house professionals. A Practicing Company Secretary (PCS) offers specialized services like corporate restructuring, governance audits, legal advisory on mergers and acquisitions, and corporate compliance audits. Setting up an independent practice allows CS professionals to work with multiple clients, often specializing in particular areas such as tax law, governance audits, or shareholder relations.

Become PF & ESIC Pro: Basic to Advance Course - Enroll Today

8. Steps towards becoming a Licensed Company Secretary

1. Enroll in the Foundation Programme if you have completed Class 12 or directly in the Executive Programme if you hold a graduation degree in any field other than Fine Arts.
2. Prepare diligently for each stage of the CS exams and complete the required training, following the ICSI curriculum and syllabus.
3. Gain practical experience by completing the Executive Development Programme, practical training, and Management Skills Orientation Programme as per ICSI guidelines.
4. Apply for membership with ICSI to obtain the official CS license after passing the exams and completing all training requirements.
5. Stay updated and continuously improve your skills, as corporate laws and governance practices evolve regularly.

Conclusion

The path to becoming a Company Secretary in India is structured and challenging, but rewarding. CS professionals play an indispensable role in ensuring that companies operate within legal boundaries and uphold shareholder interests.

In India’s rapidly evolving business landscape, the future for Company Secretaries looks promising, with a steady demand for qualified professionals who can navigate complex regulatory environments. For young aspirants willing to commit to the journey, the Company Secretary career promises a fulfilling and well-respected role in the corporate world.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates