The purpose of nominee director
The purpose of nominee is that foreigners are not familiar with Singapore’s laws and regulations. Singapore has come up with a method of appointing a local nominee director, which is equivalent to finding a third party to guarantee the government.
The nominee director must be a citizen familiar with Singapore’s laws and regulations, or a permanent resident who serves as a director, and is responsible for ensuring that the company operates in compliance with the Singapore Companies Act.
Can a nominee director manage my company or sign documents?
No, the nominee director cannot manage your company. As an exception, the nominee director can sign a contract or invoice for an additional fee if the document is acceptable to us.
What risks does a nominee director take?
As mentioned earlier, the interests of the Singapore company have nothing to do with Singapore’s local directors. However, if the Singapore company violates the law, the nominee director is the first responsible person, because the director is not responsible for ensuring the legal operation of the company.
Once a company nominal by a local director is involved in smuggling and money laundering, the nominee director will be investigated by the government in accordance with the law, and other companies’ nominal by the local director may face closed accounts, and the director involved will also be permanently disqualified from being named.
How to control the risk of a nominee director?
- Need to choose a good character and a high personal foundation.
- Ensure that the registered company operates within the legal scope and try to avoid problems involving other companies.