Singapore’s advanced and well-established business environment attracts several foreign companies to start their business. If you are a foreigner living overseas and planning to set-up a company in Singapore then you must already know that you need to appoint a nominee director for your company. For outsiders, the concept of the responsibility of directorship stipulated in Section 157(1) of the Companies Act (Cap 50) often gets confusing. In this article, AI Accountant Chai Chung Hoong will help clear your idea about nominee director services.
ROLE OF A NOMINEE DIRECTOR
Let’s say you stay out of Singapore and you are not able to meet the requirement of the resident director of your company as you do not intend to purchase any properties in Singapore. In this situation, you can opt for nominee director services.
A nominee director is an individual who will represent the interests of another person belonging to the same group or company. He/she will have the same role and responsibilities as that of a resident director as stated by the Companies Act Section 157 and Chapter 50 and also by the common law.
In other words, the work of a nominee director is to comply with the statutory requirement of the resident director. Therefore, hiring a random person to fill up the position will not be a good choice, and you run the risk of breaching Section 410 of the Penal Code.
WHY DO YOU NEED A TRUSTED NOMINEE DIRECTOR?
You must appoint a trustworthy and qualified individual as the nominee director of your company. We know that the work of a nominee director is extremely crucial for the company. It is because of this reason that appointing a qualified individual is a must. If you choose any random person to take on the responsibility of the post, you run the risk of being summoned to court for breaking the law through ignorance or non compliance with The Company Act Section 157.
The best thing to do is to rely on a professional service firm to recommend a nominee director. These professional agencies can provide you qualified individuals who can manage your company well. AI Accountant Chai Chung Hoong can help recommend you the most suitable nominee director service.
Now that you know the importance of appointing a nominee director, make sure that you choose the right person for the position. After all, the development of your company is dependent on him/her to a great extent. Remember, if you need professional business consultancy in Singapore and advice on nominee director services, AI Accountant Chai Chung Hoong is the right person for you!