Nominee Service: What is it and how does it work?


Nominee Director Service is commonly heard when a foreigner is incorporating business in Malaysia, and even in many countries. A lot of people find the terms “Director” sensitive, because they thought appointing a nominee director as if adding a new director to the company and it might affect the operations and financial functions of the company – this is wrong. Credence Partners Sdn Bhd handles every clients’ matters professionally, with care and thoughtfulness. We always try to understand our clients’ needs before selling them our service. We strive to make the setting up of your new company a smooth and seamless process. Our detail-oriented and analytical professionals can get your company set up efficiently and securely.

What is a Nominee Director?

A nominee director is an individual appointed by a certain appointer to the board of directors of a company, and usually the appointer usually possess a large shareholding in the company or any person how is the major decision maker of the company.

Why do you need a Nominee Director?

According to Malaysia Companies Act, all companies are required to have at least TWO directors or local residents to be the directors of the company. Thus, in order to facilitate your company establishment, we will supply two qualified persons to satisfy this legal compliance.

How does Nominee Director work?

As a foreigner, you will be encountering a lot of hurdles than the locals when setting up business in Malaysia. The purpose of having a nominee director is to prevent your company from falling into foreign company scheme when applying for a bank account. For example, if you are setting up a restaurant chain in Malaysia, you will need a bank account to operate your business. The bank will categorize your company under foreign scheme and that will take longer time as more due diligence needs to be done and that also will prevent you from enjoying local benefit, such as having a lower interest rate. The purpose of appointing a Nominee Director is solely to fulfill statutory compliance and enable foreigners to enjoy local benefits and operate the business like a local.

Who will be the nominee directors?

Credence Partners Sdn Bhd has a wide range of truthful professional connections with extensive experience in business and finance sectors, we will assign our creditable individual as your nominee director, and will guide you through along the administration process.

Does a nominee director have control over your business?

No. The beneficial owner would retain complete control of the company. The Nominee Director will also sign an undated letter of resignation that can be submitted on their behalf at any time the beneficial owner wishes to prevent the Nominee Director for acting against your interests. As a nominee director, we do not control your business operation, finance, business model, any decision making, and anything related to your business. It is only a chargeable service that we provide to you, what we do is only allowing our client to use our local identity to facilitate any documentation and administrative process. We have a service contract to refrain ourselves from intervening your business.

Does a nominee director own any share of your company?

No. We do not earn any benefits from your company. Again, this will be clearly stated in the service agreement. Your company benefits is wholly protected under the service agreement.

Does a nominee director have signatory right to your bank account?

No. We do not have any financial control over your business. Our role is only needed when opening a bank account, for the purpose to make your company falls under local scheme and to fulfil statutory compliance.

Any queries? Please email to, we are happy to help!


This article does not contain advice regarding law or legal practice. It does however contain general information. Please use the information at your own risk.

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