Many foreigner and foreign entrepreneurs and business owners who do not know any Singapore Citizens, Permanent Residences or Entrepass Holders in the management or shareholders willing to support their company will typically take up the use of a Local Nominee Director Services.
The use of such as service is stipulated under Section IXA of Singapore’s Companies Act. This is a process after company registration.
The name ‘Nominee’ is used to indicate that the director role is strictly a non-executive role in companies. It is provided only to help satisfy Singapore’s law and regulatory compliance and thus does not involve the Nominee Director taking any other forms of direct involvement and risks in the operation aspects of the business (i.e. single handedly authorising the incorporation, opening of a company bank account, voting or attending board meetings, etc).
While the director role of the company in Singapore is non-executive, it is important to note to our clients that every director in Singapore still must abide by a general duty to ensure the company remains compliant. (Similar to a company secretary) Therefore the nominee director position name still carries a general responsibility and inherent liability to the potential risks. To help mitigate this liability when offering our Nominee Director Services we take out the appropriate insurances for our Nominee Directors, including a Deed of Indemnity and Directors & Officers Insurance obligations.