Nominee Director Services
The first thing that you would probably ask is: What is a nominee director?
Each private limited company is required to have at least one director who is ordinarily a resident in Singapore to satisfy statutory requirements.
A foreign businessman intending to set up a base here will initially have to avail the services of a nominee director to satisfy the statutory requirements. If the businessman intends to reside in this country to carry on his business, the nominee services are usually for a limited period of three to six months. During this period the businessman can apply for an entre-pass or after a period of six months an employment pass with the Ministry of Manpower(MOM). Once the work pass is approved, the nominee can be replaced, as the work pass holder is now held to be ordinarily a resident in Singapore for tax purposes
There are instances where the foreign businessman will not require to be a resident in this country to carry on his business. In this circumstances, the services are availed annually.
A nominee director’s role is to act as a director of a company, on behalf of the non-resident owner of that same company. The nominee director may also be authorized to sign official documents, reports, minutes and other documents, as may be agreed upon by the beneficial owner and the nominee. Usually, a nominee and the beneficial owner signs a legal agreement, indicating the terms of the nominee’s services. It is not unusual for the agreement to state that the Nominee Director is not in anyway involved in the day to day operation of the business.
A Sandhurst-appointed nominee director is guaranteed not to have any operational or financial interest in the beneficial owner’s company, such as contracts or banking matters. His role is solely limited to satisfying the statutory requirements of having a local resident director.
As the role of the Nominee Director is statutory in nature, the legal obligations placed upon this role is no different from being appointed as a working director. Hence a refundable security deposit is required to avail this service.
The level of risks associated with the nominee appointment is directly proportional to the complexity of the company set up. If the nominee is the sole director and the set up is GST registered, or if the set up has a corporate shareholder, there are certain requirements that has to be fulfilled before Sandhurst will accept the nomination.
Requirements to be fulfilled will the that the client must engage Sandhurst in providing the services of a company secretary, use of our Registered Office Address as well as accounting and bookkeeping, including GST filing services and any other services that Sandhurst may deem necessary.
You may terminate our nominee director agreement at any time in writing. You can do this by providing us with details of your alternate local director. We will take care of the necessary filings for the change, and we will give you a refund of the security deposit.
By E-Sandhurst