What is a Nominee Shareholder & How to Appoint One

Staff Writer

November 29, 2023

What’s in the article?

In Singapore, a nominee shareholder serves as a representative who receives the legal title to company shares on behalf of the share owner, who still stands to receive the economic benefits and the rights that the shares bring. Nominee shareholders are often appointed to maintain the privacy and confidentiality of the share owner’s identity.

What is a Nominee Shareholder?

A nominee shareholder satisfies the following criteria:

  • The shareholder is accustomed or is under obligation—regardless of whether formal or informal—to vote according to the instructions or wishes of another person
  • The shareholder receives dividends on behalf of another person

It’s worth noting that the nominee shareholder doesn’t necessarily have to be a Singaporean citizen and can instead be an individual who holds a Permanent Resident, Employment, or Dependent pass.

When Should a Nominee Shareholder Be Appointed?

A nominee shareholder must be appointed during the drafting of the company registration as the nominee shareholder’s name and information will have to be listed in the shareholder’s information section.

What are the Obligations of a Nominee Shareholder?

A nominee shareholder has the following obligations:

The nominee shareholder must inform their companies of their status as nominee shareholders and provide the particulars of their nominators. These include the following information regarding the nominator should the nominator be an individual:

  • Full name
  • Aliases
  • Residential address
  • Nationality
  • Identification or passport number
  • Date of birth
  • Date of nominee shareholder appointment

Should the nominator be a legal entity, the following information should be provided by the nominee shareholder:

  • Name
  • Unique entity number as issued by the registrar
  • Address of registered office
  • Legal form of the legal entity
  • Jurisdiction of incorporation
  • Name of corporate entity register of the jurisdiction where the legal entity was incorporated
  • Identification or register number of legal entity as issued by the corporate entity register where the legal entity was incorporated
  • Date of nominee shareholder appointment

The nominee shareholder must inform their companies when they are no longer nominee shareholders, as well as of any changes to their nominator’s particulars given to the company

These obligations are under specific timelines depending on the incorporation of the company. For shareholders of a company that was incorporated no earlier than October 4, 2022, the nominee shareholder must inform the company of their nominee shareholder status and provide the particulars of their nominator within 30 days of either:

  • The date of the company’s incorporation
  • After the shareholder becomes a nominee

For shareholders of a company that was incorporated before October 4, 2022, the nominee shareholder must inform the company of their nominee shareholder status and provide the particulars of their nominator either:

  • Within 60 days after October 4, 2022
  • Within 30 days after the shareholder becomes a nominee

Regarding the obligation of the nominee shareholder to inform their company when they cease to be nominee shareholder, the nominee must do this:

  • Within 30 days after he ceases to be a nominee shareholder
  • Within 30 days of any changes to the particulars provided to the company

Easy Company Management with WealthBridge!

Running a company can be really difficult, but our professional team at WealthBridge is here to help you out. We offer a wide selection of corporate services that range from incorporation and tax filing to secretarial and accounting services to help keep your company running smoothly.

What's popular