Nominee Director Engagement Process
Know-Your-Client (“KYC”) Assessment
The Engagement Process usually begins with the KYC Assessment administered by us. At this stage, we will be seeking information pertaining to your business activities, your expected financials and future plans for the Company. We will also perform background checks on key stakeholders of the Company and you will be required to provide evidence of good standings of the Company, the principal owner(s) and the business decision-makers of the Company.
Based on our KYC analysis, we will decide on the risk profile of the company before presenting our offer to the principal. For the benefit of the doubt, Nominee fees and/or amount of refundable security deposit may vary depending on the risk profile determined. For instance, if your Company is likely to exceed $1M in turnover in a year, your risk profile will likely be from medium to high, as businesses with turnovers in excess of $1M are required to fulfill additional tax requirements (example: compulsory registration for GST, more complex tax filing procedures etc…). Similarly, should there be any intentions to employ local staff, which will require your compliance towards the CPF requirements of Singapore.
Conditions for Engagement
Our conditions prior to the subsequent appointment of nominee director are as follows:
- The nominee director is appointed solely for the purpose of fulfilling the statutory requirements of the Companies Act of Singapore. He or she shall not be involved in the management or business operations of the Company.
- The appointment of nominee director is contingent upon the appointment of at least one business decision maker as a statutory director of the company.
- The company must not be insolvent or has any outstanding loans or financing charge placed against the company during the tenure of appointment of the nominee director
- The company must take up secretarial, tax filing and registered address service with ContactOne Professional Services.
- In the event that local employees are hired, your refundable security deposit must be increased to cover at a minimum, the aggregate payroll amount due to your employees for one month.
- You are allowed to open only one Singapore bank account for the company. Opening of subsequent bank accounts, be it foreign or local, can only be carried out with the explicit approval of the nominee director.
- Monthly bank statements must be sent to the office of ContactOne Professional Services to satisfy part of the ongoing KYC process.
Ongoing KYC Requirements
Our risk management framework entails the continuous monitoring of the risk profile of our clients taking up nominee services. In the course of nomine service provision, we will perform ongoing review of the company, including the review of bank transactions and the performance of inquiry with the business decision makers of the Company from time to time.
In the event that ContactOne is of the opinion that provision of nominee services are no longer feasible, ContactOne and the nominee director reserves all rights to terminate the nominee services for the Company by giving a 30-day notice. It is the responsibility of the Company to find an alternate nominee director within the notice period given to continue its fulfilment of the statutory requirements stipulated in the Companies Act.
The company is entitled to terminate the nominee services with ContactOne at any time. Please note that you during the termination process, you will need to provide us with details of the incoming local director to meet your statutory requirements.