Nominee Director Service

Under the Companies Act 2016, all companies are required to have at least 1 company director with a residential address located within Malaysia. It is mandatory to appoint a local nominee director in Malaysia

THE STANDARD TERMS AND CONDITIONS FOR NOMINEE DIRECTOR SERVICE IN MALAYSIA:

Below are the responsibilities of the Nominee director that we provide:

Company Act, 1965, Section 132 (1E), A director, like an employee of the organization, or who act as substitute director for short period, shall bear in mind to act with honesty, shall not subordinate responsibilities to act in the for the entity to his duty to other.

 Terms and conditions for being nominee director Malaysia of your company:
1. A nominee shall never interfere in the business of the company and neither signatory of the bank nor act as a signatory of bank account;
2. If any wrong activities are done by the directors (shareholders) of the company without the knowledge of the Nominee will not take any responsibilities;
3.  Nominee will not come to take any seat and/ or attend any meeting unless requested by the directors (shareholders);
4. In case of any debt of the company will not be borne by the nominee;
5. Nominee shall not be working in your office as regular staff;
6. Nominee shall neither act as a shareholder nor perform as director of the company;
7. Directors (shareholders) will notify the nominee one month before termination of service;
8. If any activities are done by the nominee director beyond of knowledge of shareholders (or, other directors) the nominee will be terminated immediately;
9. Unless any changes are made will auto-renew nominee service for next year; If the company decides to terminate the nominee, on that case have to give 2 months’ notice before termination.

Package Fee for Nominee Director Service:

All companies are required to have at least one director who each has his principal or only place of residence within Malaysia. Our given nominee director is provided by us, in-house reputable and trustworthy personnel. As per the company act, to register a company in Malaysia must need one local residential director, if you don’t have that for that case can appoint our nominee director as your company’s local director.

FAQ for Nominee Director Services:

1. Can a nominee director be a signatory for my company bank account?

• No, the nominee director cannot manage or involve in the operation of your company. The Nominee director neither will be your bank account signatory nor will have physical involvement in our client’s company business. So, the nominee director will not be responsible for any profit/loss caused by the company.

2. Can I use the nominee director IC copy to apply for a business license?

• No, it’s our company policy and as per the nominee director agreement our clients cannot use the nominee director’s IC copy to apply for their local business license. Point to take note, except for a few licenses like Tourism license, kindergarten, liquor license, and child care, all other business licenses do not require IC copy to apply as long as the company can fulfill other major requirements.

3. Am I allowed to terminate the nominee director anytime?

• Yes, with short notice company can terminate the nominee director but, in that case, yearly fees will not be refundable.

4. Who will be liable for statutory compliance if the company never follows?

• The appointed Director(s) & Shareholder(s) of the company are responsible for complying with the requirements as per the company act Malaysia. Failure to comply with statutory compliance can cause SSM Legal Compound for the company.

5. Do I need any security deposit to appoint a nominee director?

• Yes. 1 month’s Security deposit is mandatory. The Security Deposit might be higher if the paid-up capital of the company is very high. 

6. What is the job scope for the local nominee director?

• To register a foreign shareholding company in Malaysia, the company must need a local nominee director, or the foreign director(s) need to reside in Malaysia with a valid long-term pass. The company will use the details (especially residential address) of the Nominee director to register the company. 

7. Do I need a nominee director to open a corporate bank account if I’m holding a tourist/short-term visa?

• No, you don’t need any local signatory to open a corporate bank account. We have extensive partnerships with a few foreign banks (HSBC, OCBC, UOB, STANDARD CHARTERED), so with a short-term visa and valid passport you are eligible to open a corporate bank account as long as you are not bankrupt or blacklisted in your home country. Even though you are eligible, opening a corporate bank account is subject to approval by the bank compliance authority.
  

Do not hesitate to Contact Us today for immediate Service.