If you’re thinking of starting a business in Singapore, you could have heard of the term “nominee director.” But just what does this mean, and how do it benefit your organization? On this page, we’ll take a closer look at Singapore nominee director services and how they can help you reach your business goals.
Exactly what is a Nominee Director?
A nominee director is a person or a company that’s appointed to act as a director of an organization on behalf of another person or entity. The nominee director does not have any executive power or authority within the business, but instead acts as a placeholder for the real director or owner of the company. Basically, the nominee director’s name appears on the state company records and documents, however they usually do not make any decisions or take any actions on behalf of 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 regulations: Under Singapore law, every company will need to have at least one director who’s ordinarily resident in Singapore. Therefore the director must be a Singapore citizen, permanent resident, or anyone who has been issued a jobs Pass or Entrepreneur Pass. If you are a foreigner who’s starting a business in Singapore, you may not meet these requirements, and therefore, you will have 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 company. By appointing a nominee director, the business enterprise owner can maintain their anonymity while still to be able to operate their business.
Facilitation of business operations: Sometimes, the business owner will not be able to be physically within Singapore to control the day-to-day operations of the company. By appointing a nominee director who is locally based, the business enterprise owner can ensure that their company complies with local regulations, and that operations run smoothly.
nominee director service in Singapore into new markets: If a business owner is seeking to expand their business into new markets, they could want to appoint a nominee director who has knowledge of the local market and will help the business navigate the local business environment.
Great things about Using Nominee Director Services in Singapore
There are several benefits to using nominee director services in Singapore:
Compliance with local laws and regulations: As stated earlier, every company in Singapore must have a minumum of one director who’s 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 value your privacy and want to keep your name off the public records and documents of your company, a nominee director will let you achieve this.
Facilitation of business operations: For anyone who is unable to be physically within Singapore to control your company’s operations, a nominee director might help make sure that your company complies with local regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you can appoint a nominee director for as long or as short a period as you need. This could be especially useful should you be testing the waters in a new market and are not sure how long you will have to stay in Singapore.
Cost-effective: Nominee director services can be more cost-effective than hiring a full-time director, especially if you only need you to definitely act as a placeholder or for a brief period of time.