If you’re thinking about starting a small business in Singapore, you could have heard of the term “nominee director.” But what exactly does this mean, and how can it benefit your business? In this posting, we’ll take a closer look at Singapore nominee director services and how they are able to help you achieve your business goals.
What Is a Nominee Director?
A nominee director is really a person or a company that’s appointed to act as a director of an organization on behalf of someone else or entity. director fee in Singapore does not have any executive power or authority within the company, but instead acts as a placeholder for the true director or owner of the company. Put simply, the nominee director’s name appears on the state company records and documents, however they do not make any decisions or take any actions with respect to 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 at least one director who is ordinarily resident in Singapore. Which means that the director should be a Singapore citizen, permanent resident, or someone who has been issued a jobs Pass or Entrepreneur Pass. If you are a foreigner who’s starting a small business in Singapore, you might not meet these requirements, and therefore, you will have 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 enterprise owner can maintain their anonymity while still to be able to operate their business.
Facilitation of business operations: Sometimes, the business owner may not be in a position to be physically within Singapore to manage the day-to-day operations of the business. By appointing a nominee director who’s locally based, the business owner can ensure that their company complies with local regulations, and that operations run smoothly.
Expansion into new markets: In case a business owner is looking to expand their business into new markets, they may want to appoint a nominee director who has knowledge of the local market and will help the business navigate the local business environment.
Benefits of Using Nominee Director Services in Singapore
There are several benefits to using nominee director services in Singapore:
Compliance with local laws and regulations: As mentioned earlier, every company in Singapore will need to have at least one director who is 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 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: Should you be unable to be physically within Singapore to manage your company’s operations, a nominee director might help ensure that your company complies with local regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you could appoint a nominee director for for as long or as short an interval as you need. This is often especially useful if you are testing the waters in a fresh market and are not sure how long you will need 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 short period of time.