Appointing the Right Person as your Nominee Director in Malaysia
All companies are required to have at least one directors who each has his principal or only place of residence within Malaysia according to the Malaysia Companies Act.
It is common for foreigners to set up a company in Malaysia with nominee directors acting as their local directors.
Responsibilities are quite burdensome for all directors, including the nominee directors. The nominee directors would end up having to pay extra charges for the company including company liquidation charges in case the foreign clients areno longer reachable.
At 3E Accounting, our Nominee Director Services is provided by our reputable and trustworthy professionals. We will provide you with local Nominee Directors who are Malaysia citizen and closely associated with the management team in 3E Accounting, with guaranteed good services. 3E Accounting has been providing Nominee Directors services since 2011 in Singapore and Malaysia. Based on our extensive experiences and good feedback with 100% satisfaction rating received so far, we are confident that we will be able to provide you with guaranteed quality of Nominee Director Services that would satisfy your requirement. The Nominee Directors are supported by highly competent professionals and have the required skill set needed to discharge their duties as local directors and to assist companies in the fulfilling of the requirements and guidelines as set out in the Companies Act and by the local Authorities. 3E Accounting can help companies to maintain their good standing status and ensure their full regulatory compliance at all time. As the responsibilities of the Nominee Directors are very onerous, to safeguard the interests of the nominee director, we require a security deposit to be kept with us for as long as our Nominee Director Services is being engaged.
Our Nominee Director will sign an agreement with you to provide you with the assurance that they will not be involved in your business operation, as well as not to be your bank signatories, so that you can have full control over your bank account(s) and company.
If your company is in good standing based on a detailed company review, we will be pleased to offer you our Malaysia Nominee Director Service with security deposit only at RM5,000 for each director. However, all the directors, shareholders, principals and agents, if any,, must satisfy our initial Know Your Customer (KYC) requirements.
We understand that we have competitors who are not collecting security deposit but you should always be aware that they usually are able to do so by outsourcing their Nominee Director services.
Some service providers in Malaysia are providing nominee director services without performing any due diligence review. These service providers are taking the risk of ending up with high risk clients especially those who are involved in money laundering or terrorism financing activities.
If a nominee director is involved in a legal suit, all the companies with the same nominee director will be affected as well. That nominee director might implicate your company resulting in investigation being carried out on your company. This is a very serious implication to you and will cause ample inconvenience to you including requiring your regular presence in Malaysia to assist with any investigation.
Only service providers who meant business and are concern with the reputation and well-being of all their clients will perform due diligence review and ask for valid and sufficient supporting documents to ensure conformity. This is a good practise which is beneficial to you as they will perform thorough screening of their potential clients ensuring that all clients are good and will not implicate each other causing unnecessary losses or inconvenience.
You should also be sceptical with service providers that do not perform or perform minimum due diligence review and are able to set up a company for you with nominee director services using basic information such as passport and address proof only. Such errant service providers may be black-listed by financial institutions as high risk client category resulting in difficulty or pro-longed process in opening a bank account.
While some people have the misconception that companies with foreign setup will not be able to have a bank account successfully opened by the financial institutions, it is in fact due to the due diligence review issue which resulted in them being listed as high risk clients by the financial institutions. That is the reason why most banks prefer a foreigner with valid work pass before they consider approving a bank account for the foreigner as they could perform their due diligence review based on records available in the government’s database.
With the above analysis, please rest assured that with 3E Accounting, you will not encounter any of these problem. Our world class due diligence review system which has passed the assessment by the Singapore Authority is of guaranteed quality of services. For customer like you and those who has reputable branding overseas the quality of your nominee director , is important and our assurance is to provide you with the stability required including the commitment of fulfilling all the rules and regulations.
With such good system, financial institutions place high confident in us and we have very close banking relationship with them. This can assure you a smooth and easier process for any bank account opening application, even with a 100% foreign ownership company, if you are starting a genuine business start-up in Malaysia. Based on our records, we have not encountered any rejection of bank account opening application because of sole foreign ownership issue.
Choosing between having a local Malaysia nominee or not largely depends on the requirement of the nature of your business. If one is not careful on the appointment, the following four complications may arise:
- All directors are required to sign company documents for the smallest changes, nominees do not turn up to sign.
- Nominees credit score over time is not good, this will affect the health of the company
- Untraceable nominees will lead to inability to complete any compliance duty with the relevant Governmental Departments that will cause penalties which are costly, ranging from RM2,000 onwards.
- Dispute to claims of the Company’s authority and shares.
In 3E, we provide our own Nominee Directors to guarantee our customers safety. You can terminate our Nominee Director Service anytime by providing us with the details regarding an alternate local resident director. We will do the necessary paperwork, file the change with authorities and promptly refund the security deposit back to you.