Professional Fees for Nominee Director Services
Below are details about the total cost of a nominee director service:
- Annual fee of SGD 2,500
- Non-taxable and refundable amount of SGD 2,500 (minimum) for security deposit
Additionally, any costs or expenses that may arise depending on the nominee director’s performance are excluded from the fees.
Nominee Director’s Scope and Limitation
Primarily, it is the nominee director’s duty to meet all the mandatory requirements, which can be found in the Singapore Companies Act. The director should also be aware of the statutory requirements, as he or she will be accountable for it. Most importantly, the individual will serve as the company’s non-executive director on the board of directors.
With this in mind, the nominee director will not be expected to deal with other concerns of the firm including operations, finances and management. However, the nominee director will be required to perform the duty of a trustee, which means certain tasks are to be completed such as examining and reviewing of the financial and bank statements of the company.
Duty of the Nominee Director and the Role of Clients
As mentioned previously, nominee directors will not be involved in the company’s operations. You have the right to cease the nominee director service, should you be unsatisfied with the services provided. Please keep in mind that termination should only be made once a qualified nominee director is available. This means that you should look into the status of the potential new nominee director who is not an undischarged bankrupt and of a sound mental capacity.
In the case you do not intend to stay in Singapore for long period of time, you can choose to engage our nominee director service on a yearly renewal basis.
Another option is to choose a temporary engagement with the nominee director, depending on your particular situation. The moment you are successfully granted a valid pass, you can take over as the company’s local director and cease the nominee director services.
If you wish to replace the nominee director that we have appointed, we will provide you with a credible substitute. As for the fees, this will involve the nominee director retainer fee and a refundable security deposit for the provision of our firm’s nominee director service. Upon the resignation of the director, you may refund the agreed security deposit.
The security deposit is intended to cover any likely government penalties or compliance costs, which the director might have to settle on behalf of the company. For instance, the management is unable to meet the requirements for the statutory filing. Other applicable fees include late filing, winding up cost and other penalties set by relevant authorities.
The Terms Included in the Nominee Director Services:
- In addition to the nominee director, you will need to appoint another two directors to your company’s Board. These directors will be in charge of running your company’s daily activities and serve as executive directors. The executive directors will be expected to do the following tasks of signing of financial statements, contracts and business dealings.
- It is very important for the company to maintain solvency throughout its existence in the industry.
- The business is not allowed to have any external debts.
Companies that are unable to comply with these terms will be obligated to pay a higher fee for the refundable security deposit.Our firm collaborates with a reputable affiliate partner, which offers a dependable nominee director service that will meet your standards.
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