What you need to know about Nominee Director and Nominee Shareholder

Nominee Director:

A Nominee Director is someone who is appointed by a company or a firm on behalf of the company’s owner. Such a person is responsible for assimilation of the organization’s documentation and administration of the company and hence must have qualities like great reasoning and analytic skills, sincerity, honesty, earnestness and attentiveness.

At least one nominee director is required if you want to start a new company or set up a branch office of your company in Singapore. The minimum age limit of this appointed director is set as 18 years of age. Other than this, such a person is bound to be a Singapore Citizen or a permanent resident or must have a valid employment or dependent pass.

Even though the nominee director takes care of the management and documentation of the company, the power of attorney still remains in the name of the owner of the organization. Thus, all the important decisions are made by the owner, the nominee director is only responsible for taking care of the administrative tasks. However, the actual owner remains anonymous.

Nominee Shareholder:

Another noteworthy act in Singapore’s company guidelines is that every organization, irrespective of a new start-up, a branch office or subsidiary office must have at least one nominee shareholder. The shareholder need not be an individual person, another organization or corporation can also be appointed as a nominee.

Moreover, unlike the nominee director, it is not necessary for a shareholder to be a permanent resident, citizen or a holder of Dependent or Employment Pass. Appointing nominee shareholder leverages the company in terms of corporate security and absolute privacy.

Furthermore, all the records of Singapore ACRA, incorporate the nominee shareholder’s name, however, the shareholder actually holds all those shares on behalf of the owner and these shares can be transferred back to the owner’s name whenever he wishes and places a valid request.