Each country has its own set of rules and regulations to follow. It is mandatory for all the citizens as well as the foreigners to abide by the rules of the nation to keep the entire system organized and disciplined. The foreigners who establish their own business on the land of Singapore have to appoint a nominee director for their company. The nominee director should be the native of Singapore and his name to be entered in the list of other directors of the company. In other words, a foreigner does not get the permission to set up his business if his company does not appoint a resident director.
Timcole, one of the leading companies of Singapore, is an Accounting firm to handle all the administrative part of the company. Its principal activity is management consultancy services with accounting and auditing services as the secondary activity.
Significance of Nominee Director
The indirect presence of the Nominee director is significant from the perspective of following the rules of Singapore’s Company Act. A nominee director has the same duties and responsibilities as those applied on a regular director by the Companies Act. Most of the power is shouldered on the board of directors, who manage and control the major decisions of the company. They are only accountable for the decisions they make and answerable to the shareholders of the company. But the nominee director is not involved in the major decisions of the company and does not even put forth his views in their important discussions. The company can appoint the deserving director as per their requirement or choice. The nominee director services are decided by the main authority of the company and are offered for statutory compliance only. The nominee director is there only to comply with the laws of the Singaporean government. Thus, he never intervenes in your decisions and meetings.
Why does a company need a nominee director?
The legal responsibilities are looked after by the company’s directors and other main authorities. Like, they conduct Annual General Meetings and file annual returns to ACRA and submission of corporate taxation returns to IRAS. The nominee director is held accountable to all statutory requirements. It is an offense to forbid the statutory compliance for which heavy penalty and prosecution are being imposed on the company.
The Nominee Director is arranged by the consultancy and accounting firm which assists the corporate heads in complying with the norms of the government. The nominee directors are:
- Highly qualified
- Well-versed in Corporate Restructuring
- Served by locals
- Fully integrated provider
The Nominee directors help the company with his wonderful experience in the corporate world. He is a resident of Singapore only so he would assist you in understanding the laws and system of the country. He can also provide assistance in operating business effectively and efficiently. Though he never interferes in your decisions and will never counter questions for the decision taken by the board of directors yet if you need, he will provide you solutions and recommendations for the growth of the company.