Singapore Nominee Shareholder: What Is It And What Is It For?

By Author: Ashley V.
Total Articles: 63
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In Singapore corporations, the Singapore Companies Act requires that every registered corporation must have at least one shareholder. This shareholder may both be a shareholder or a corporation and not necessarily be a resident of Singapore. Thus, a shareholder in Singapore may either be a Singapore citizen, a permanent resident or a holder of an employment pass or dependent pass. The Companies Act also requires that all personal information of all shareholders, directors, and officers of the corporation shall be indicated in the corporation's Memorandum and Articles of Incorporation.

Upon incorporation, the names of the shareholders will be listed in the records of the Singapore Accounting and Corporate Regulatory Authority (ACRA) and are thus open to the public. There are individuals, however, especially foreigners, who wish to remain anonymous in order to protect their identity and secure corporate privacy. It is on this instance that a nominee shareholder is needed. A nominee shareholder is an ostensible and registered shareholder who holds the shares of a corporation in trust for the actual owners, more commonly ...
... known as the beneficial owners. It is the name of the nominee shareholder that is listed and which appears in the records of the Register of Shareholders in the Singapore Accounting and Corporate Regulatory Authority. A nominee shareholder understands that he is not the legal owner of the shares that he holds.

He undertakes to return the shares to the beneficial owner once the nominee shareholder service is terminated or transferred to another party upon the request of the beneficial owner. The beneficial owner retains the ownership of all the income and capital gains acquired by the held shares. In order to assure the beneficial owner of the protection of his shares, sometimes there is a need for the nominee shareholder to sign an agreement or declaration of trust that he is holding the shares in trust only for the beneficial owner.

Appointing a nominee shareholder is an alternative that could best suit your corporate needs especially in protecting your personal information and assuring your privacy as a shareholder. There are a number of independent firms that offer the service of providing you with a Singapore Nominee Shareholder in order to help you maintain your anonymity and secure corporate privacy. By employing the services of these firms, you can be assured that the nominee shareholder you appoint is professional and understands the extent of his rights and responsibilities as such shareholder.

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