A nominee director is a natural or legal person appointed as a non-executive trustee on the board of an offshore company or company in a country with a tax haven. Singapore-based offshore companies are required by law to appoint a local director for their legitimate business. Also, the local guardian must be a holder / dependent of a work pass, permanent resident or Singapore citizen.
Use the local director to protect identity
In addition to complying with Singapore law on the appointment of a local director, offshore companies will also appoint a local director to protect the privacy of the person doing business.
Utilize the service of a nominated director
A Singapore company has the option of using a third party service to appoint a nominee director services singapore if they cannot find a suitable director themselves. This imposes certain responsibilities in the implementation of these services and they can be provided on an annual or short-term basis. Fees and security deposits will vary depending on the terms of these third party services and the structure of the offshore company involved in the following ways:
- Reliance on the trustee may require additional information on a case-by-case basis.
- Companies must sign an indemnity letter to the local manager.
- The trustee is responsible for paying the company’s liquidation costs in the event that the offshore client is not available.
- A surety bond is required to protect the third-party trustee and will be held as long as the Singapore Company continues to use the services of a local director.
- A Singapore company can choose to exclude itself from a local director one month in advance.
- Upon termination of trustee service, the offshore company must provide a detailed explanation of its intention to replace the local Singapore trustee.
- Fiduciary Services will refund your business security deposit immediately upon cancellation by the local director.
Generally, no shareholding requirement is required for a local director. However, if the terms of the organization make the qualification of the shares mandatory, the trustee must receive them within a specified period of time.
For customers who want to offer management to a large number of people, including the US, it is strongly recommended to use the nominated services. For example, a customer’s site may contain an error in the price or in the description of the service due to the web designer not translating the data correctly. This can lead to a critical compensation claim from a frustrated customer.
It is interesting to note that a local director does not usually manage or control a Singapore company. The exception to this rule is when a third-party trustee needs to sign a contract or account. In this case, an additional fee will be charged to the offshore company if the fiduciary service considers the document to be legal.