Under the Companies Act of Malaysia, all companies must have at least one director who resides principally in Malaysia or whose only place of residence is Malaysia.

It is common for foreigners to set up companies in Malaysia with nominee directors acting as local directors.

All directors have significant responsibilities (including nominee directors). Therefore, if a situation arises, such as being unable to contact the foreign company owner, the nominee director must pay the company's related expenses, including the company's liquidation costs.

The nominee director services provided by our accounting firm are performed by our reputable and trustworthy professionals. The local nominee directors we will provide to you are Malaysian citizens and are closely associated with our accounting management team to ensure that good services are provided to our clients. Our accounting firm has been providing nominee director services in Singapore and Malaysia since 2011. The feedback we have received from our clients so far is 100% satisfaction, and with the accumulated rich experience, we are confident that we can provide you with quality guaranteed nominee director services that meet your requirements. The nominee directors are supported by highly qualified professionals and have the necessary capabilities to perform the duties of local directors, assist the company to comply with the Company Act regulations, and fulfill the requirements stipulated by local authorities. Our accounting can help your company maintain and comply with regulations. Due to the huge responsibilities of the nominee director, in order to protect the interests of the nominee director, we will require a security deposit during the period of the nominee director's service.

Our nominee directors will sign an agreement with you to assure you that they will not be involved in the business operations of your company and will not be the signatory of the bank account, so that you can have full control over the account and the company.

If your company is confirmed to be in good standing after a detailed corporate review, we are happy to provide you with Malaysia nominee director services with a security deposit of only RM10,000 per director. However, all directors, shareholders, principals and agents (if any) must meet our preliminary "Know Your Customer (KYC)" requirements.

We know that some of our peers do not charge a deposit. This may indicate that they provide nominee director services in an outsourced manner, which is something you need to pay attention to.

Some service providers in Malaysia offer nominee director services without conducting any due diligence, which can lead to encountering high-risk clients, especially those involved in money laundering or illegal financing activities.

If a nominee director is involved in a legal action, other companies that employ the same nominee director will also be affected. This means that the nominee director will cause your company to be investigated. This is a very serious impact on you and will cause you a lot of inconvenience, including that you will be required to travel to Malaysia regularly to assist in any investigations.

Some service providers in Malaysia offer nominee director services without conducting any due diligence, which can lead to encountering high-risk clients, especially those involved in money laundering or illegal financing activities.

If a nominee director is involved in legal proceedings, other companies that employ the same nominee director will also be affected. This means that the nominee director will cause your company to be investigated. This is a very serious impact on you and will cause you a lot of inconvenience, including that you will be required to travel to Malaysia regularly to assist in any investigations.

Service providers who put their company first and care about the reputation and well-being of all their clients will conduct due diligence in advance and require clients to provide valid and sufficient documentation to ensure that relevant requirements are met. This is a good practice for your benefit. Such providers will thoroughly screen potential clients first to ensure that all clients are legitimate and will not be involved with each other to avoid unnecessary losses or inconveniences.

Furthermore, you should be cautious with service providers who only do minimal due diligence work, including those who are able to provide you with nominee director services with only basic information such as passport and address proof. This is not right. The service provider may be blacklisted by financial institutions as a high-risk customer, making it difficult or lengthy to open a bank account.

Some people mistakenly believe that foreign companies cannot successfully open bank accounts with financial institutions , but in fact it is due to due diligence issues that cause them to be classified as high-risk customers. This is why most banks will first consider those with valid work permits when approving foreigners to open bank accounts, as they can perform due diligence based on records in the government database.

With the above analysis, you should be able to rest assured to hire our accounting services because you will not encounter the problems mentioned above. Our world-class due diligence system evaluated by the Singapore Authority guarantees the quality of our services. For clients like you who have a good reputation overseas, the quality of your nominee director is very important. Our guarantee can provide you with the stability you need, including a commitment to fulfill all regulations and laws.

We have a very close banking relationship with financial institutions because of our good system. If you really want to start a business in Malaysia, even if it is a 100% foreign-owned company, you can be sure that your bank account opening application will be smooth and easy. According to our records, we have never encountered a case where a bank refused an application for an account because the company is foreign-owned.

Whether to choose a local Malaysian to serve depends largely on the nature of your company's business requirements. If the appointment is inappropriate, the following four consequences may occur:

• All directors are required to sign company documents even for minor changes, but the nominee director was not present to sign

• Over time, it will be discovered that the nominee director has a poor credit rating, which will affect the health of the company.

• Nominee directors with unknown backgrounds may result in the company being unable to fulfill its compliance obligations with relevant government departments, which will result in the company being penalized with a fine of up to RM 2,000

• Disputes over company power and shares
  

At GMC, we provide our own nominee director for the security of our clients. You can terminate our nominee director service at any time by providing us with the details of the replacement nominee director. We will do the necessary paperwork, submit the changes to the authorities and return the security deposit to you immediately.