Why is a resident director required for registration of a Singapore company?
All Singapore Private Limited Companies are required by the Singapore Companies Act to have at least one director.
A director should be:
Singapore Citizen,
Singapore Permanent Resident, or
Singapore Employment Pass/EntrePass/Dependant Pass holder with a residential address in Singapore.
What are the responsibilities of a nominee director?
The nominee director normally does not have any role in the company, other than to satisfy the statutory requirements of a local resident director for your Singapore incorporated Company. Thus, the Nominee director is a director by name only, without any powers or responsibilities.
A nominee director should also comply and take charge of the following:
Fiduciary duties
Statutory books
Statutory filings
Accounting records
Annual accounts
Appointment of auditors
Shareholders meeting
Is it possible to engage the services of a nominee director?
Yes that's possible and many incorporation service providers offer this service for a professional fee. Normally a nominee director does not have any financial, management, or operational interest in the company. A nominee director's role is just to satisfy the statutory requirement of a local resident director for your Singapore company. If you need the services of a nominee director, make sure the incorporation agent you hire offers this service.
What are the conditions if we would hire a nominee director service?
The service is offered for statutory compliance only. The Nominee Director will not be involved in any management, financial, or operational matters of the company.
You must appoint one or more individuals (normally the company shareholders) to be the directors that are responsible for running the company operations.
The service provider will need to be satisfied with the credibility of company beneficiaries.
You will be required to sign a nominee director indemnity letter.
What is the purpose of security deposit?
Security Deposit is in addition to the Service Fees. The security deposit is refundable and it is held for the duration of the service. It will be refunded to you upon termination of the Nominee Director Service. Security deposit is intended to pay for the company liquidation charges in case the foreign client is no longer reachable.
