If you’re thinking about starting a small business in Singapore, you may have heard of the word “nominee director.” But what exactly does this mean, and how do it benefit your organization? On this page, we’ll have a closer look at Singapore nominee director services and how they are able to help you reach your business goals.
Exactly what is a Nominee Director?
A nominee director is a person or a company that’s appointed to act as a director of an organization on behalf of another person or entity. The nominee director 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 business. Basically, the nominee director’s name appears on the official company records and documents, however 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 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. Because of this 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 have 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 business. 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 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’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 could 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 benefits to using nominee director services in Singapore:
Compliance with local regulations: As stated earlier, every company in Singapore will need to have a minumum of one director who is ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, you can make sure 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 public records and documents of your company, a nominee director will let 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 can help make sure 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 as long or as short an interval as you need. director fee in Singapore is often especially useful should you be testing the waters in a fresh market and are not sure how long you 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 short period of time.