Appointing the Right Person as your Nominee Director
All Singapore companies 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 company in Singapore with a nominee director acting as the local director. Responsibilities are quite burdensome for all directors, including the nominee director. The nominee director would end up having to pay for company charges including liquidation charges in case the foreign director or the foreign client is no longer reachable.
At 3E Accounting, our Nominee Director Services is provided by our reputable and trustworthy professionals. We can guarantee the best quality of services of our Nominee Director Services where our local Nominee Director is a Singapore citizen who is also a member of the management team in 3E Accounting. As a qualified accountant, the Nominee Director is highly competent and has the required skill set needed to discharge his duties as a local director and to assist companies in fulfilling the requirements and guidelines as set out in the Companies Act and by the local Authorities. He can help the companies to maintain their good standing status and ensure their full regulatory compliance at all time. As the responsibilities of the Nominee Director is very onerous, to safeguard the interests of the nominee director, we require a security deposit to be kept with us for as long as our Nominee Director Services is being engaged.
Our Nominee Director will sign an agreement with you to provide the assurance that we will not be involved in your business operation, as well as not to be your bank signatory, so that you can have full control over your bank account(s) and company.
If your company is in good standing based on a detailed company review, we will be pleased to offer you our Singapore Nominee Director Services with a security deposit of only S$2,000. However, all the directors, shareholders, principals and agents, if any, must satisfy our initial Know Your Customer (KYC) requirements. We understand that we have competitors who are not collecting security deposit but you should always be aware that they usually are able to do so by outsourcing their Nominee Director services.
Some service providers are even offering lower prices for their nominee director services but they will provide customers with low quality services. This will eventually cause their customer to pay a higher price and might even cause big trouble to their businesses.
For some service providers, they may get employment pass holders to act as the nominee director for their customers. This is illegal and is not in compliance with the MOM’s ruling unless prior approval is granted by MOM. Customers should request for the evident of such approval from the service provider otherwise they will put their company at risk of having without a local director if the Authorities take any action. For 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 permit that has already expired without renewal. Therefore, one who is engaging their services is encouraged to verify the validity of the nominee director’s P.R. re-entry permit. So, by engaging our services which is very reliable and professional, it is also a simple and straight forward process as we will always ensure and provide you with Singapore citizen Nominee Directors who are also professionally qualified.
The duties and responsibilities of a nominee director is very onerous therefore requires a person who possesses the capabilities and competency to carry out such function. If unfortunately a non-competent person is being appointed as your nominee director, you may risk having your companies in bad shape either due to not being able to obtain signature for important documents and resolutions or not being able to get signature on time, having the director signing on documents prepared not in accordance with the proper guidelines and requirements, not being able to proceed with important transactions and so on. More importantly, with a nominee director that has no knowledge on the compliance requirements, customer may end up not filing or filing their annual returns not on time and the directors may risk being debarred from acting as director of another company in the future or having their existing companies being closed down by ACRA.
In 3E, we provide our own director for our Nominee Directors services to guarantee our customers safety and business perpetuality. You can terminate our Nominee Director Services anytime when you are ready to do so by providing us with the details regarding the replacement local resident director. We will do the necessary paperwork, file the change with the Authorities and promptly refund the security deposit back to you.