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Nominee Director

Updated: Sep 7, 2023

Residential Status Required for Directorship under Companies Act


Under the Companies Act 2016, section 196(4) provides the requirement for a director that he must ordinarily reside in Malaysia by having a principal place of residence in Malaysia. In the case of a private company, the minimum number of resident directors is at least one. In the case of a public company, at least two.


Nominee Director


A nominee director is a person who is appointed by a company to act as a director on its behalf. This is typically done by foreign companies that want to set up a subsidiary in Malaysia but do not have any Malaysian residents who can serve as directors.


The nominee director must be a Malaysian resident and must meet the requirements set out in the Malaysian Companies Act 2016. They must be of sound mind and body, and must not have been convicted of any offences involving fraud or dishonesty.


The nominee directors are not allowed to take part in the day-to-day management of the company.


Here are some of the benefits of appointing a nominee director in Malaysia:

  • It meets the statutory compliance requirements for Malaysian companies.

  • It provides a local presence for the company, which can be helpful for business development.

If you are a foreign company considering setting up a subsidiary in Malaysia, you should consider appointing a nominee director. This will help you to comply with the local laws and regulations, and it can also be a valuable asset to your business.


Here are some of the things to consider when appointing a nominee director in Malaysia:

  • The nominee director must be a Malaysian resident and must meet the requirements set out in the Malaysian Companies Act 2016.

  • The nominee director must be available to sign documents on behalf of the company.

A "nominee" director is not involved in the operation and the management of a company.


No matter whether you are a nominee director or not, no personal financial liability for the company’s debts has to be borne by you. However, a nominee director has the same duty to the company as a “real” director does.


Fees for a Nominee Director in Malaysia


The fees for a nominee director in Malaysia vary, but typically range from RM3,000 to RM5,000 per year.


How Bestar can Help


Bestar provides nominee director and branch’s agent (for foreign companies) services. Our professionals can help to efficiently manage your corporate and statutory secretarial functions. Contact us today.

Nominee Director | Bestar
Nominee Director | Bestar





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