Nominee Director

Nominee Director (currently unavailable)


CURRENTLY UNAVAILABLE

ContactOne Professional Services offers Nominee Director Service to companies that are seeking a resident director for the sole purpose of meeting the statutory requirements mandated by the Companies Act. A company is required to have at least one ordinarily resident of Singapore to act as a Director of the Company. Please note that Nominee Director Service is provided only to clients who fulfil our Know-Your-Client (“KYC”) assessment as well as stipulated conditions prior to the signing up of this service.
Do I Need a Nominee Director?
You will need to find an individual who is ordinarily a resident of Singapore to act as the local director of your company if:
  • You are a foreigner who is setting up a Singapore company and will be managing the business from overseas.
  • You are a foreigner who is intending to set up a Singapore company and subsequently intend to work in Singapore under an Employment Pass.

An individual is ordinarily a resident in Singapore if the individual:
  • Is either a Singapore citizen, a Singapore Permanent Resident, an Employment Pass Holder an EntrePass Holder or a Dependent’s Pass Holder;
  • Has a Singapore residential address; and
  • Has his usual place of residence in Singapore.

If you require a local director in order to start up or continue with your business, our honest advice to you is to first source for possible contacts of your own whom you can trust and rely on, before attempting to engage a third party service provider to do so. By doing so, you actually get to save a huge chunk of professional fees annually which will improve your company margins, especially so for new start up business which do not have a clear view of how business may turn out over the next 2 years.
The Hard Truth about Nominee Directors
The truth is, engaging a nominee director involves the acceptance of risk for both the company owner and the nominee director. The company owner needs to ensure that the nominee director is available for company matters and more importantly, to be confident that the nominee director will not make unauthorized transactions or representations in the name of the company. On the other hand, the nominee director have to take on fiduciary responsibilities and duties for company and statutory matters and more importantly, will any potential business failures or fraud committed by the company affect him personally?
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.
Fee Determination
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.
Termination
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.
Fees for Nominee Director Service
Nominee Director Service Rates Indicative Fee*
12-Month Nominee Director Service
  • Provision of Local Resident to act as Nominee Director for your Company
  • A minimum refundable security deposit of $5,000 needs to be collected prior to the official engagement
Not Available
Monthly Nominee Director Service
  • Provision of Local Resident to act as Nominee Director for your Company on a short term basis
  • A minimum refundable security deposit of $5,000 needs to be collected prior to the official engagement
Not Available
* Indicative fee amount is based on provision of nominee director services for a company deemed to be of low risk profile after KYC.

Nominee Director Services Add-Ons Fee
Signing of Acceptable Contracts and Documents $170
Out of Office Assignments $170 per hour