Singapore is really a global hub for businesses, with its stable economy, business-friendly policies, and strategic location in Southeast Asia. However, starting a small business in Singapore could be complex, specifically for foreign entrepreneurs who are not familiar with the neighborhood laws and regulations. One of many common challenges faced by foreign businesses in Singapore is the requirement to appoint a local director. This is where Singapore Nominee Director Services come into play.
In this article, we will discuss what Singapore Nominee Director Services are, how they work, and the benefits they can bring to your organization.
What Are Singapore Nominee Director Services?
A Singapore Nominee Director is an individual or a corporate entity that’s appointed by way of a foreign company to act as its local director in Singapore. The Nominee Director has no involvement in the day-to-day operations of the company, and the foreign company retains full control over its business operations. The Nominee Director’s role is limited to fulfilling the legal dependence on having a local director for the company.
The Nominee Director is normally appointed for one of two reasons: either the foreign company doesn’t have a local resident director, or the foreign company’s director does not wish to be publicly defined as the director of the Singapore company.
How Do Singapore Nominee Director Services Work?
To activate Singapore Nominee Director Services, a foreign company must engage the services of a specialist service provider that offers Nominee Director services. The service provider will appoint a Nominee Director who meets certain requirements of the Singapore Companies Act. nominee director service in Singapore will then sign a Director’s Consent Letter, which confirms that the Nominee Director is ready to act as the neighborhood director of the business.
The foreign company will retain full control over the management and operations of the business. The Nominee Director will not be involved with any decision-making processes, and the foreign company’s director will continue to manage the company’s affairs remotely.
The Nominee Director’s role would be to fulfill the legal dependence on having an area resident director for the business. The Nominee Director provides their name and residential address to the Accounting and Corporate Regulatory Authority (ACRA) along with other government agencies. The Nominee Director will also sign any legal documents required by the Singapore government, such as the Annual General Meeting (AGM) resolutions and financial statements.
The Nominee Director’s appointment is normally for a fixed term, and the service provider provides renewal services if the foreign company requires the Nominee Director’s services for a longer time.
Benefits of Singapore Nominee Director Services
Singapore Nominee Director Services offer many perks to foreign businesses that are starting their operations in Singapore. Some of the key benefits include:
Compliance with Singapore regulations
Beneath the Singapore Companies Act, every Singapore company must have a minumum of one local resident director. Engaging Singapore Nominee Director Services means that the foreign company complies with this particular legal requirement, which is essential for the business’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors may not want to be publicly defined as the director of the Singapore company. Engaging a Nominee Director allows the foreign director to remain anonymous while fulfilling the legal requirement of having an area director.
Faster company incorporation
Engaging a Nominee Director can help speed up the procedure of incorporating a Singapore company. Since the Nominee Director meets the residency requirement, the foreign company can complete the registration process quickly and start its operations in Singapore without the delay.
Flexibility in managing the business
Engaging a Nominee Director provides foreign directors with more flexibility in managing their Singapore company. Because the Nominee Director doesn’t have any involvement in the business’s day-to-day operations, the foreign director can manage the business’s affairs remotely without the disruption