If you’re thinking of starting a business in Singapore, you might have heard of the term “nominee director.” But what exactly does this mean, and how do it benefit your organization? In this article, we’ll have a closer look at Singapore nominee director services and how they can help you achieve your business goals.
What Is a Nominee Director?
A nominee director is really a person or perhaps a company that’s appointed to act 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 company, but instead acts as a placeholder for the real director or owner of the company. In other words, the nominee director’s name appears on the official company records and documents, but they 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 reasons why companies use nominee director services in Singapore:
Compliance with local laws and regulations: Under Singapore law, every company must have a minumum of one director who’s ordinarily resident in Singapore. Which means that nominee director fee should be a Singapore citizen, permanent resident, or someone who has been issued an Employment 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 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 enterprise owner can maintain their anonymity while still having the ability to operate their business.
Facilitation of business operations: In some cases, the business owner may not be able to be physically present in Singapore to manage the day-to-day operations of the company. By appointing a nominee director who’s locally based, the business enterprise owner can make sure that their company complies with local laws and regulations, and that operations run smoothly.
Expansion into new markets: In case a business owner is seeking to expand their business into new markets, they may want to appoint a nominee director who has knowledge of the local market and may help the company navigate the neighborhood business environment.
Benefits of Using Nominee Director Services in Singapore
There are several advantages to using nominee director services in Singapore:
Compliance with local regulations: As mentioned earlier, every company in Singapore will need to have a minumum of one director who’s ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, it is possible to make sure that your company complies with local regulations.
Protection of privacy: If you’d prefer your privacy and desire to keep your name off the general public records and documents of one’s company, a nominee director can assist you achieve this.
Facilitation of business operations: Should you be unable to be physically present in Singapore to manage your company’s operations, a nominee director might 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 can appoint a nominee director for as long or as short a period as you need. This could be especially useful when you are testing the waters in a new market and are uncertain 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, particularly if you only need someone to act as a placeholder or for a brief period of time.