According to the Singapore Companies Act, all Singapore companies must have a local director in place. Whether a local executive of the company in Singapore or as a third party director.
By law, the company director must reside in Singapore, whether internal or third party.
Third party nominee directors do not manage your company. They may be permitted to sign or authorize certain documents that are approved by the provider. The directors of the company are entirely responsible for all operations and will be held liable for any infractions of the Singapore Companies Act.
With the services of a nominee director, you have flexibility. The services of the director are simply to fulfill the requirements of the Singapore Companies Act. He/she will have absolutely no financial, operational or management interest in your company.
In addition, the services of the nominee director may be terminated at any time. The company ownership must only provide full information on the replacement local resident director. At this point, the service provider will handle all the legal activities and notify the authorities of the change.
The agreement is a legal and binding one. There is specific information that is required, such as:
• A full background check on the company with financial, legal and ethical inquiries.
• A signed and notarized letter of indemnity.
• In most cases, a refundable deposit is required.
The deposit is required due to the fact that the nominee director Singapore will be financially responsible for asset liquidation should the client be unreachable for any reason. This nominal deposit is to protect the nominee director from these damages. It is fully refundable upon proper termination of the services.
It should be noted that there is typically a service fee that is not refundable and is not associated with the deposit in any way.
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