If you’re thinking of starting a small business in Singapore, you could have heard of the word “nominee director.” But just what does this mean, and how can it benefit your organization? In this article, we’ll have a closer look at Singapore nominee director services and how they are able to help you achieve your business goals.
Exactly what is a Nominee Director?
A nominee director is really a person or perhaps a company that is appointed to do something as a director of a company on behalf of someone else or entity. The nominee director doesn’t have any executive power or authority within the business, but rather acts as a placeholder for the true director or owner of the company. Basically, the nominee director’s name appears on the state 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 explanations why companies use nominee director services in Singapore:
Compliance with local laws and regulations: Under Singapore law, every company will need to have a minumum of one director who’s ordinarily resident in Singapore. Which means that the director must be a Singapore citizen, permanent resident, or someone who has been issued an Employment 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 need to appoint a nominee director who satisfies these criteria.
director fee in Singapore of privacy: Some companies may would rather keep their names off the public records and documents of the company. By appointing a nominee director, the business owner can maintain their anonymity while still having the capacity to operate their business.
Facilitation of business operations: In some cases, the business owner might not be able to be physically within Singapore to control 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 regulations, and that operations run smoothly.
Expansion into new markets: If 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 can help the company navigate the neighborhood business environment.
Benefits of Using Nominee Director Services in Singapore
There are several advantages to using nominee director services in Singapore:
Compliance with local laws and regulations: As mentioned earlier, every company in Singapore will need to have a minumum of one director who’s ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, it is possible to ensure that your company complies with local laws and regulations.
Protection of privacy: If you’d prefer your privacy and desire to keep your name off the general public records and documents of your company, a nominee director can assist 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 a period as you need. This could be especially useful for anyone who is testing the waters in a fresh market and are not sure how long you will need to stay in Singapore.
Cost-effective: Nominee director services can be more cost-effective than hiring a full-time director, especially if you only need someone to become a placeholder or for a brief period of time.