If you’re thinking about starting a business in Singapore, you could have heard of the word “nominee director.” But just what does this mean, and how do it benefit your organization? On this page, we’ll take 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 is appointed to act as a director of an organization on behalf of someone else or entity. The nominee director doesn’t have any executive power or authority within the business, but instead acts as a placeholder for the true director or owner of the business. Put simply, the nominee director’s name appears on the official company records and documents, however they usually 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 regulations: Under Singapore law, every company must 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 a jobs Pass or Entrepreneur Pass. If you’re a foreigner who’s starting a 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 would rather keep their names off the general public records and documents of the business. By appointing a nominee director, the business enterprise owner can maintain their anonymity while still to be able to operate their business.
Facilitation of business operations: In some cases, the business owner might not be able to be physically present in Singapore to manage the day-to-day operations of the business. By appointing a nominee director who’s locally based, the business enterprise owner can ensure 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 want to appoint a nominee director who has understanding of the local market and will help the company navigate the neighborhood business environment.
Great things about 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 will need to have a minumum of one director who is ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, it is possible to make sure that your company complies with local laws and regulations.
nominee director service in Singapore of privacy: If you’d prefer your privacy and desire to keep your name off the public records and documents of one’s company, a nominee director may help you achieve this.
Facilitation of business operations: When you are unable to be physically present in Singapore to manage your company’s operations, a nominee director might help make sure that your company complies with local regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you can appoint a nominee director for as long or as short a period as you need. This is often especially useful for anyone who is testing the waters in a new market and are not sure how long you will have 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 become a placeholder or for a short period of time.