Nominee Director Services in Singapore
In the process of registration for setting up a local company in Singapore, one of the major requirements that foreign entrepreneurs must follow is to have a director of the company who is a citizen of Singapore or holds an Employment Pass, an Entre Pass or a Dependant Pass.
If you can’t find an appropriate resident director, or need to find a director who meets the exact needs of the registration process, you can use the nominee director services in Singapore.
Here is what you need to know about the nominee director services in Singapore.
Responsibilities of a Nominee Director
The nominee director will not be involved in the processes of your company and will only serve the statutory purpose, so the company’s operations will be entirely in your hands while having your company incorporated in Singapore legally.
Conducts Annual General Meetings
The nominee director holds the legal responsibility of conducting the annual general meetings.
Files the Annual Return to ACRA
The Accounting Compliance Regulatory Authority of Singapore (ACRA) needs to be filed the annual return responsibly, and this is done by the nominee director.
Submits the Taxation Returns to IRAS
The Inland Revenue Authority of Singapore (IRAS) has to be submitted the corporate taxation returns. This responsibility also falls under the nominee director.
Conditions of Hiring a Nominee Director
As the owner of the company, you need to:
Appoint a Shareholder of your Choice to Run the Business
Since the nominee director will not be involved in the business matters actively, you must first appoint a shareholder who will manage the responsibilities of a director.
Execute the Nominee Director Services’ Indemnity Agreement
An agreement needs to be made when this kind of risk is being transferred, therefore, the indemnity agreement, in which one party agrees to “indemnify” the other party need to be made.
Satisfy the Nominee Director Services’ Requirements of Client Risk Assessment
The nominee director services will be taking care of a huge risk, so your company must satisfy the requirements of the risk assessment. If your company falls under very high risk, chances are that most nominee director services will not accept you.
Use the Payroll Service of the Nominee Director Services
The payroll of the nominee director services must be used when you are providing employment(s) to the residents of Singapore.
Provide Nominee Director Services with the Monthly Bank Statement
To satisfy the nominee director services that you are running the company smoothly without any case of malpractice, you must provide them with a monthly bank statement.
Risk Levels for a Nominee Director
It is important to note that a nominee director will be the one held responsible for all statutory requirements. Failure to comply will lead to penalty, fine and legal persecution.
There are many risk levels of a company and a nominee director service will charge on the basis of risk. The higher your company stands at risk, the more it will be charged. Small companies are at a lower risk, and companies with external debt are set with a high risk level.