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 could be complex, especially for foreign entrepreneurs who are not familiar with the local laws and regulations. One of the 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 are able to bring to your organization.
WHAT EXACTLY ARE Singapore Nominee Director Services?
A Singapore Nominee Director can be an individual or a corporate entity that’s appointed by a foreign company to act as its local director in Singapore. The Nominee Director 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 normally appointed for one of two reasons: either the foreign company doesn’t have a local resident director, or the foreign company’s director will not desire to be publicly defined as the director of the Singapore company.
How Do Singapore Nominee Director Services Work?
To engage Singapore Nominee Director Services, a foreign company must engage the services of a professional service provider that offers Nominee Director services. The company will then 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 willing to act as the neighborhood director of the company.
The foreign company will retain full control over the management and operations of the business. The Nominee Director will never be involved with any decision-making processes, and the foreign company’s director will continue to manage the company’s affairs remotely.
The Nominee Director’s role is to fulfill the legal dependence on having a local 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 may also sign any legal documents required by the Singapore government, like the Annual General Meeting (AGM) resolutions and financial statements.
The Nominee Director’s appointment is usually for a fixed term, and the service provider provides renewal services if the foreign company requires the Nominee Director’s services for a longer period.
Great things about Singapore Nominee Director Services
Singapore Nominee Director Services offer several benefits to foreign businesses that are starting their operations in Singapore. A few of the key benefits include:
Compliance with Singapore regulations
Beneath the Singapore Companies Act, every Singapore company must have a minumum of one local resident director. Engaging Singapore Nominee Director Services ensures that the foreign company complies with this particular legal requirement, that is essential for the company’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors may not wish to be publicly identified as the director of the Singapore company. Engaging a Nominee Director allows the foreign director to stay anonymous while fulfilling the legal requirement of having an area director.
Faster company incorporation
Engaging a Nominee Director can help speed up the process 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.
nominee director services in Singapore in managing the business
Engaging a Nominee Director provides foreign directors with an increase of flexibility in managing their Singapore company. Since the Nominee Director doesn’t have any involvement in the company’s day-to-day operations, the foreign director can manage the company’s affairs remotely without any disruption