If you’re thinking of starting a 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? In this article, we’ll take a closer look at Singapore nominee director services and how they can help you achieve your business goals.
What Is a Nominee Director?
A nominee director is a person or a company that is appointed to do something as a director of an organization on behalf of someone else or entity. nominee director service in Singapore doesn’t have any executive power or authority within the company, but instead acts as a placeholder for the real 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 is ordinarily resident in Singapore. Therefore 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 may not meet these requirements, and therefore, you need to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some companies may prefer to keep their names off the 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: Sometimes, the business owner might 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 is locally based, the business owner can make sure that their company complies with local regulations, and that operations run smoothly.
Expansion into new markets: In case a business owner is seeking to expand their business into new markets, they may desire to appoint a nominee director who has understanding of the local market and will help the company navigate the local 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 laws and regulations: As stated earlier, every company in Singapore must have at least 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 regulations.
Protection of privacy: If you value your privacy and desire to keep your name off the public records and documents of one’s company, a nominee director will help you achieve this.
Facilitation of business operations: When you are struggling to be physically present in Singapore to control your company’s operations, a nominee director might 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 is often especially useful for anyone who is testing the waters in a new market and are uncertain 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, particularly if you only need someone to act as a placeholder or for a short period of time.