How severe is Singapore as a jurisdiction?
There is no one who doesn’t know about the austerity of Singapore. Any oversight or misstep is charged with severe penalties. The minor ones are no big deal, but sometimes even court summons are being sent!
In our routine at the office, we have to deal with charges and summons almost on a daily basis, since many of our clients frequently delay the submission of relevant accounting data.
Our Singapore employees, who are Nominal Directors in local offshore companies, start quivering having received such summons, if their companies haven’t met the requirement on due annual reporting. For Eltoma Corporate Services (a licensed service provider in Singapore) legal issues of our Nominal Directors are our deep concerns, because once disqualified, our employees won’t be able to become Nominal Directors for clients’ offshore companies anymore. So we will have to promptly find new ones for dozens of companies, where these employees acted as nominees. This of course means that we will face our clients’ complaints regarding extra losses incurred due to compiling a new set of documents. However, this is not the major problem. One undiligent client might trigger a mass closure of bank accounts for all offshore companies where our disqualified employee acted as a Nominal Director.
At the same time, we frequently work with companies that transferred from other Singapore service providers and are always astonished to see how passive they are with respect to court summons and fines that are constantly growing. It’s still hard to believe something like that can be noticed in Singapore!