Business Encyclopedia

A

Accounting and Corporate Regulatory Authority (ACRA)
Audited Financial Statement
Annual General Meeting (AGM)
Annual Report (AR)
Articles of Association
Apostille

B

BizFile
Business Grants Portal
Business Profile

C

Central Provident Fund (CPF)
Certificate Of Residence (COR)
Common Reporting Standard
Common Seal
Companies Act (Cap. 50)
Company Constitution
Company Secretary
Company Stamp
CorpPass

D

Dependant’s Pass
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Dividend
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Due Diligence

E

Electronic Register of Members (eROM)
Employment Pass (EP)
EntrePass
Enterprise Development Grant (EDG)
Estimated Chargeable Income (ECI)
Exempt Private Company (EPC)

F

Financial Year End (FYE)
Form C-S/ C
Form C-S (Lite)
Fund Accounting

G

Goods and Services Tax (GST)

H

Hedge Fund

I

Import/Export License
Income Tax
Initial Public Offering (IPO)
Inland Revenue Authority of Singapore (IRAS)
Intellectual Property Office of Singapore (IPOS)
Interim Dividend
IR21 Form

J

K

Know Your Customer (KYC)
Knowledge Capital

L

Letter of Consent (LOC)
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
Limited Partnership (LP)
Liquidation (Court Order/Compulsory)
Liquidation (Voluntary)
Long Term Visit Pass (LTVP)

M

Ministry of Manpower (MOM)
MTI

N

Nominee Director
Nominee Shareholder
National Registration Identity Card (NIRC)

O

P

Partnership
Personal Data Protection Act (PDPA)
Personalised Employment Pass (PEP)
Private limited company
Productivity Solutions Grant (PSG)
Permanent Resident (PR)

Q

Quickbook Accounting

R

Register of Charges
Register of Nominee Director
Register of Registrable Controllers (RORC)
Registered Office Address

S

S Pass
Share
Small Company
Sole Proprietor
Special Employment Credit
Sponsored Employment Pass
Striking Off

T

Trademark
Temporary Bridging Loan
Temporary Employment Credit (TEC)

U

UEN
Unaudited financial statement
Undischarged Bankrupt

V

Variable Capital Company (VCC)
Venture Capitalist (VC)

W

Wage Credit Scheme
Withholding Tax (Section 45)

X

XBRL
Xero

Y

Year of Assessment (YA)

Z

Zero Rated Supplies
Zero-rised Financial Statement

Nominee Shareholder

A nominee shareholder is a person that acts as the registered owner of shares on behalf of another person who is the actual owner of the shares. As such, a nominee shareholder takes up the name of another and simply holds the share on behalf of such person in agreement.

In Singapore, it is not illegal to appoint a nominee shareholder; however, this action must be done for the right reason and purpose. In addition to this, the appointment and registration of the nominee shareholder must be submitted to the Inland Revenue Authority of Singapore (IRAS), Accounting and Corporate Regulatory Authority (ACRA), and other governmental agencies as deemed fit.

Appointment of a Nominee Shareholder

It is proper for a nominee shareholder to sign a nominee agreement (declaration of trust) in order to officially measure the capabilities of the nominee shareholder.

The declaration of trust usually involves a list of official declarations stating who the share rightly belongs to, how the nominee shareholder would only act in the owner’s best interest and, as such, would promptly transfer shares upon request of the rightful owner, and report the rights and benefits related to the shares to the rightful owner when required.

The owner should obtain an undated share transfer form in order to secure the shares in the hands of the nominee shareholders.

Benefits of Appointing a Nominee Shareholder

There are numerous individual reasons why shareowners would try to appoint a nominee shareholder; however, the major benefits of appointing a shareholder are; anonymity and ownership.

As such, for whatever reasons you are appointing a nominee shareholder, you can stay anonymous both online and on paper and still yield a significant share in a company. This is why it is advisable to appoint someone trustworthy, such as a family member, lawyer, etc.

In addition, the risk of appointing a nominee shareholder can not be overlooked. Therefore, it is important that the shareowner completely secures the ownership of his shares even when the nominee shareholder holds it.