If you’re thinking about starting a business in Singapore, you could have heard of the term “nominee director.” But just what does this mean, and how can it benefit your business? In this post, we’ll take a closer look at Singapore nominee director services and how they are able to help you reach your business goals.
Exactly what is a Nominee Director?
A nominee director is a person or perhaps a company that is appointed to do something as a director of an organization on behalf of another person or entity. The nominee director doesn’t have any executive power or authority within the business, but instead acts as a placeholder for the true director or owner of the company. Quite simply, 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 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 is 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’re a foreigner who is starting a small business in Singapore, you might not meet these requirements, and for that reason, you will need to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some companies may prefer to keep their names off the general public records and documents of the company. 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 cases, the business owner might 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 owner can make sure that their company complies with local laws and regulations, and that operations run smoothly.
Expansion into new markets: If a business owner is seeking to expand their business into new markets, they may desire to appoint a nominee director who has understanding of the local market and will help the company navigate the local 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 must have a minumum of one director who is ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, you can make sure that your company complies with local laws and regulations.
Protection of privacy: If you value your privacy and desire to keep your name off the general public records and documents of your company, a nominee director will help you achieve this.
Facilitation of business operations: For anyone who is unable to be physically present in Singapore to control your company’s operations, a nominee director can help make sure that your company complies with local 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 a period as you need. This can be especially useful in case you are 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 could be more cost-effective than hiring a full-time director, especially if you only need someone to become a placeholder or for a short period of time.