Things You Need to Know About
the Role and Function of a Nominee Director in Singapore
Singapore’s pro-business atmosphere makes it an attractive destination for foreign companies to establish a company. If you are a foreigner intending to register a company in Singapore, then you would apparently have done some analysis on the requirements and are aware of the requirement to elect a minimum of one resident director for your business. Well, most of the people appear to get confused about the concept of resident plus nominee director in Singapore.
According to the Accounting & Corporate Regulatory Authority (ACRA), a resident director must be generally resident in Singapore with a local residential address. Besides that, the person can either be a Singapore resident, Permanent Resident, Employment Pass holder, either EntrePass holder.
If you refer to one of the categories specified above, you can appoint yourself as the resident director. Though, what happens if you are residing outside of Singapore also are helpless to comply with the requirement of a resident director for your company? In such a condition, you can appoint a Nominee Director as the resident director.
What is a Nominee Director’s
The Singapore Companies Act
represents a director as an individual “with whose directions or guidance the
directors of a corporation are accustomed to act plus an alternate or
While a Nominee Director is someone who represents the concerns of
another person of the group. A Nominee Director in Singapore has the same
commitments and responsibilities as a regular resident director in line.
Moreover, their duties are comparable to resident directors according to the
Companies Act and the common law.
Therefore, the Nominee Director’s primary role is to comply with the resident director's requirement. He or she is still a director as per the law and has to act in the interests of the appointing company. As such, simply selecting an amateur Singaporean to fulfill the position may not be a very prudent company decision.
Here are a few important reasons
to elect a qualified and trustworthy individual for this role:
- He or she must have an adequate level of knowledge and skills to manage the affairs of the company.
- He or she acts as a director-level representative to tackle multiple jobs. This involves financial paperwork, engagements with the local authorities on license registrations, and more.
- He or she has a responsibility to play his or her duties with honesty plus integrity. Additionally, he or she must be able to avoid any dispute of interest in the company.
- He or she must stay up-to-date on company tax and accounting updates including statutory obligations. His/ her duty also consists of working with the company secretary to assure that all essential documentation is lodged with ACRA in a timely manner.
Selecting the Right Person as
Your Company Nominee Director in Singapore
All Singapore corporations are required to have at least one
individual director who is an ordinarily resident of Singapore. It is common
for foreigners to set up a business in Singapore with a nominee director acting
as the local director. Responsibilities are pretty burdensome for all
directors, including the nominee director. The nominee director would end up
having to pay for company charges including liquidation charges in the state
the foreign director or the foreign customer is no longer reachable.
At Capital Radius, our Nominee Director Services is rendered by our reputable and trustworthy experts. We can ensure the best quality of services of our Nominee Director Services where our local Nominee Director is a Singapore Local Resident who is also a member of the management team in Capital Radius,. The Nominee Director is extremely competent and also has the required skill set needed to discharge his obligations as a local director and to assist businesses in fulfilling the requirements and guidelines as set out in the Companies Act and by the Local Authorities. He can help the businesses to preserve their good standing status plus ensure their full regulatory compliance at all times. As the duties of the Nominee Director is very onerous, to safeguard the interests of the nominee director, we need a security deposit to be kept with us for as long as our Nominee Director Services is being employed.
We Render Singapore Local
Resident Nominee Directors Who Are Also Professionally Qualified
Our Nominee Director will sign an agreement with you to render the
assurance that we will not be included in your company operation, as well as
not to be your bank signatory so that you can have complete control over your
bank account(s) plus company.
If your organization is in good standing based on a thorough company review, we will be happy to offer you our Singapore Nominee Director Services with a security deposit of only S$2,100. Though, all the directors, shareholders, principals, and agents, if any, must meet our initial Know Your Customer (KYC) requirements. We recognize that we have competitors who are not accumulating security deposits but you should always be aware that they normally are able to do so by outsourcing their Nominee Director services.
Few service providers are even offering lower costs for their nominee director services yet they will provide clients with low-quality services. This will ultimately cause their client to pay a higher price and might even create big trouble for their businesses.
For some service providers, they may get employment pass holders to act as the nominee director for their clients. This is forbidden and is not in compliance with the MOM’s ruling unless former approval is allowed by MOM. Clients should request the evidence of such confirmation from the service provider unless they will put their corporation at risk of having without a local director if the Authorities take any action. To some other service providers, the nominee director may be a Singapore Permanent Resident who is staying in Singapore with his/her P.R. re-entry consent that has already expired without renewal. Hence, one who is occupying their services is encouraged to confirm the validity of the nominee director’s P.R. re-entry permit. So, by employing our services which are very reliable plus professional, it is also an easy and straightforward method as we will always assure and provide you with Singapore Local Resident Nominee Directors which are also professionally trained.
Guarantee Our Clients Safety and Company Perpetuity
The obligations and responsibilities of a nominee director are
very difficult hence requires a person who owns the capabilities and competency
to carry out such function. If unfortunately a non-competent person is being
elected as your nominee director, you may risk having your businesses in
inferior shape either due to not being able to get a sign for necessary
documents including resolutions or not being able to take signature on time,
having the director signing on documents prepared not in accordance with the
proper guidelines also requirements, not being able to continue with important
transactions and so on. Further importantly, with a nominee director that has
no information on the compliance obligations, the client may end up not filing
or filing their annual returns, not on time including the directors may risk
being dismissed from acting as director of another corporation in the future or
having their existing companies being closed down by ACRA.
Employ our Nominee Director Services
Meet your company's statutory necessities of a resident director
by appointing Capital Radius as your Singapore Nominee Director today.
Note: change the amount in red colour as per company requirement.