If you’re thinking about starting a business in Singapore, you could have heard of the word “nominee director.” But just what does this mean, and how do it benefit your organization? In this article, we’ll take a closer look at Singapore nominee director services and how they are able to help you reach your business goals.
What Is a Nominee Director?
A nominee director is a person or a company that is appointed to do something as a director of a company on behalf of someone else or entity. The nominee director does not have any executive power or authority within the business, but rather acts as a placeholder for the true director or owner of the company. In other words, the nominee director’s name appears on the state company records and documents, but they do not make any decisions or take any actions with respect to the company.
Why Do Companies Use Nominee Director Services in Singapore?
There are several explanations why companies use nominee director services in Singapore:
Compliance with local laws and regulations: Under Singapore law, every company must have at least one director who’s ordinarily resident in Singapore. Because of this the director should be a Singapore citizen, permanent resident, or anyone who has been issued an Employment Pass or Entrepreneur Pass. If you are a foreigner who’s starting a business in Singapore, you might not meet these requirements, and therefore, you will need to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some companies may would rather keep their names off the public records and documents of the business. By appointing a nominee director, the business owner can maintain their anonymity while still having the capacity to operate their business.
Facilitation of business operations: In some instances, the business owner may not be in a position to be physically present in Singapore to control the day-to-day operations of the business. By appointing a nominee director who’s locally based, the business enterprise owner can ensure that their company complies with local regulations, and that operations run smoothly.
Expansion into new markets: If a business owner is looking to expand their business into new markets, they may want to appoint a nominee director who has knowledge of the local market and can help the business navigate the local business environment.
Great things about Using Nominee Director Services in Singapore
There are several advantages to using nominee director services in Singapore:
Compliance with local regulations: As stated earlier, every company in Singapore will need to have at least one director who is ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, you can ensure that your company complies with local regulations.
Protection of privacy: If you’d prefer your privacy and want to keep your name off the public records and documents of your company, a nominee director can assist you achieve this.
Facilitation of business operations: In case you are unable to be physically present in Singapore to manage your company’s operations, a nominee director can help make sure that your company complies with local laws and regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you will appoint a nominee director for as long or as short an interval as you need. This is often especially useful in case you are testing the waters in a fresh market and are not sure how long you will need to stay in Singapore.
director fee in Singapore -effective: Nominee director services can be more cost-effective than hiring a full-time director, particularly if you only need someone to act as a placeholder or for a brief period of time.