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 do it benefit your business? On this page, we’ll take 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 a person or a company that’s 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 rather acts as a placeholder for the real director or owner of the business. nominee director service in Singapore , the nominee director’s name appears on the official company records and documents, but 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 must have at least one director who’s ordinarily resident in Singapore. This means that the director must 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 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 prefer to keep their names off the public records and documents of the company. By appointing a nominee director, the business owner can maintain their anonymity while still having the ability to operate their business.
Facilitation of business operations: Sometimes, the business owner may 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 make sure that their company complies with local regulations, and that operations run smoothly.
Expansion into new markets: If a business owner is seeking to expand their business into new markets, they could desire to appoint a nominee director who has understanding of the local market and may 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 at least 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’d prefer your privacy and desire to keep your name off the public records and documents of one’s company, a nominee director may help you achieve this.
Facilitation of business operations: For anyone who is 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 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 can be especially useful should you be testing the waters in a fresh 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 you to definitely become a placeholder or for a short period of time.