If you’re thinking about starting a business in Singapore, you may have heard of the term “nominee director.” But just what does this mean, and how can it benefit your business? In this article, we’ll take a closer look at Singapore nominee director services and how they can help you achieve your business goals.
Exactly what is a Nominee Director?
A nominee director is really a person or perhaps a company that is appointed to do something as a director of a company on behalf of another person or entity. The nominee director doesn’t have any executive power or authority within the company, but instead acts as a placeholder for the real director or owner of the business. Put simply, the nominee director’s name appears on the state company records and documents, but they usually 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 will need to have at least one director who’s ordinarily resident in Singapore. Which 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 are a foreigner who’s 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 business owners 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 to be able to operate their business.
Facilitation of business operations: In some cases, the business owner is probably not able to be physically within Singapore to manage the day-to-day operations of the company. By appointing a nominee director who is 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 could desire to appoint a nominee director who has understanding of the local market and may help the business 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 laws and regulations: As stated 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, you can ensure that your company complies with local laws and regulations.
Protection of privacy: If you’d prefer your privacy and desire to keep your name off the general public records and documents of your company, a nominee director can assist you achieve this.
Facilitation of business operations: In case you are struggling to be physically present in Singapore to manage your company’s operations, a nominee director can help ensure that your company complies with local regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you may appoint a nominee director for as long or as short an interval as you need. This is often especially useful if you are testing the waters in a new market and are not sure how long you will need 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 act as a placeholder or for a brief period of time.