Nominee Director Service
Singapore Companies Act stipulates that all companies registered in Singapore must have at least one director who is a resident of Singapore. When a Singapore resident incorporates a company, there is not problem because he/she can act as Director. But if you are a foreign national or a corporate and you want to incorporate a company here, it is an issue. Is there a solution to this problem?
In this case, we offer you its nominee director service. Normally, foreigners who want to incorporate companies in Singapore will have to find a Singapore resident to act as the Director. When you engage us, Transcend Consulting provide one of its staff members to the post of a nominee director in your company. In case you are not relocating any of your staff to Singapore, we can provide you this service on annual basis. Even if you plan to relocate someone or relocate yourself, either on an EntrePass or an employment pass, you will still need this service for at least some time, during the period your employment pass is processed.
The nominee director’s role is only a statutory compliance. He or she will have no role in the running of your company.
You as a foreign director
While Singapore companies act stipulates that there has to be minimum one Director for the company who is ordinarily resident in Singapore, it does not prohibit foreign Directors. So in addition to nominee Director you can be appointed as a foreign director of the company. This is important as you will need these powers to execute business decisions of your company
What are the conditions to engage this service?
Nominee director charges are explained in respective Company incorporation packages.
Some frequently asked questions about nominee Director, role and responsibilities and business aspects
No. You are not giving any shareholding to the Nominee Director. 100% shareholding will be with you. Nominee Director has no shareholding in the company.
No. Nominee Director will not get involved in management of the company. His / her role is only for statutory compliance only.
No. Since nominee director is not involved in management of the company he will not know about this sensitive aspects of your business
No. Nominee Director will not be a signatory to the bank account, nor will he have any access to bank account. He may ask to see bank statements of your company periodically to protect his responsibilities
No. Nominee Director can not open bank account on his own. When you are a foreign director of your company, to open the bank account, banks will insist sign by both the directors
No as mention in previous question adding a new signatory will require signing by two directors
Yes you can ask nominee director to resign anytime by identifying any other Singapore resident to act as a nominee Director.
Nominee Director also has certain fiduciary duties. Being a local Singapore resident, lending his name to your company, he can be responsible for activities happening in your company. So to ensure that these situations do not arise he needs to see the bank statements and financial results periodically.