Singapore is a global hub for businesses, with its stable economy, business-friendly policies, and strategic location in Southeast Asia. However, starting a business in Singapore can 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 may be the requirement to appoint an area director. That’s 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 is appointed by way of a foreign company to do something as its local director in Singapore. director fee in Singapore does not have any involvement in the day-to-day operations of the business, and the foreign company retains full control over its business operations. The Nominee Director’s role is bound to fulfilling the legal requirement of having a local director for the company.
The Nominee Director is usually appointed for just one of two reasons: either the foreign company does not have a local resident director, or the foreign company’s director will 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 provides Nominee Director services. The service provider will appoint a Nominee Director who meets the requirements of the Singapore Companies Act. The Nominee Director will then sign a Director’s Consent Letter, which confirms that the Nominee Director is ready to act as the local director of the business.
The foreign company will retain full control on the management and operations of the business. The Nominee Director will never be involved in any decision-making processes, and the foreign company’s director will continue to manage the business’s affairs remotely.
The Nominee Director’s role would be to fulfill the legal requirement of 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) and other government agencies. The Nominee Director will also sign any legal documents required by the Singapore government, including the Annual General Meeting (AGM) resolutions and financial statements.
The Nominee Director’s appointment is normally for a fixed term, and the service provider will provide renewal services if the foreign company requires the Nominee Director’s services for a longer time.
Great things about Singapore Nominee Director Services
Singapore Nominee Director Services offer several benefits to foreign businesses that are starting their operations in Singapore. Some of the key benefits include:
Compliance with Singapore laws and regulations
Under the Singapore Companies Act, every Singapore company must have at least one local resident director. Engaging Singapore Nominee Director Services ensures that the foreign company complies with this particular legal requirement, which is essential for the company’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors may not desire to be publicly identified as the director of the Singapore company. Engaging a Nominee Director allows the foreign director to remain anonymous while fulfilling the legal dependence on 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 company
Engaging a Nominee Director provides foreign directors with more flexibility in managing their Singapore company. Since the Nominee Director does not have any involvement in the company’s day-to-day operations, the foreign director can manage the company’s affairs remotely without any disruption