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Q：
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What is Nominee Director (“ND”)?
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A：
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A ND is an individual appointed to fulfill the statutory requirement of having a local resident director in a Malaysia company. This ND does not participate or engage in the day-to-day management or decision-making of the company but is listed as a formal director in the company’s statutory records.
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Q：
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Why do foreign investors need the ND service in Malaysia?
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A：
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According to the Companies Act 2016, a Malaysia company must have director who is a natural person, at least 18 years old, and ordinarily resident in Malaysia. Foreign investors or companies that do not have a local representative often appoint a ND to meet this requirement.
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Q：
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Does a ND have any control over the company?
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A：
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No, a ND does not have any operational control over the company. Typically, an agreement is signed at the time of appointment to define and outline the ND’s role and responsibilities, ensuring that management and decision-making authority remain with the actual owners or shareholders of the company.
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Q：
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Is a ND legally recognised in Malaysia?
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A：
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Yes, engaging ND services is legally recognised in Malaysia, provided that the ND fulfills their duties responsibly and in compliance with regulatory requirements.
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Q：
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Can the ND open a bank account for the company?
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A：
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Most banks in Malaysia require directors with actual management control to be physically present for the account opening process. As a ND typically does not have operational control, they are generally not authorised to open a bank account on behalf of for the company.
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FAQ
