If you’re thinking about starting a business in Singapore, you could have heard of the term “nominee director.” But what exactly does this mean, and how do it benefit your business? In the following paragraphs, we’ll have a closer look at Singapore nominee director services and how they can help you reach your business goals.
Exactly what is a Nominee Director?
A nominee director is a person or perhaps a company that’s 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 true director or owner of the company. In other words, the nominee director’s name appears on the state company records and documents, but they 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 laws and regulations: Under Singapore law, every company will need to have at least one director who is ordinarily resident in Singapore. This means that the director must be a Singapore citizen, permanent resident, or anyone who has been issued a jobs Pass or Entrepreneur Pass. If you are a foreigner who’s starting a business in Singapore, you might 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 general public records and documents of the company. By appointing a nominee director, the business enterprise owner can maintain their anonymity while still having the ability to operate their business.
nominee director service in Singapore of business operations: Sometimes, the business owner may not be able to be physically present in Singapore to control the day-to-day operations of the company. By appointing a nominee director who’s locally based, the business enterprise owner can make sure that their company complies with local laws and 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 desire 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 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’s ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, it is possible to ensure that your company complies with local laws and regulations.
Protection of privacy: If you’d prefer your privacy and want to keep your name off the general public records and documents of one’s company, a nominee director will help you achieve this.
Facilitation of business operations: For anyone who is struggling to be physically present in Singapore to manage your company’s operations, a nominee director can help make sure that your company complies with local laws and regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you can appoint a nominee director for 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 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.