If you’re thinking of starting a small business in Singapore, you could have heard of the word “nominee director.” But what exactly does this mean, and how do it benefit your business? In the following paragraphs, we’ll take a closer look at Singapore nominee director services and how they are able to help you reach your business goals.
What Is a Nominee Director?
A nominee director is a person or perhaps a company that’s 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 company, but rather acts as a placeholder for the real director or owner of the business. Basically, 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 with respect to 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 laws and regulations: Under Singapore law, every company will need to have at least one director who’s ordinarily resident in Singapore. This means that the director should be a Singapore citizen, permanent resident, or anyone who has been issued an Employment Pass or Entrepreneur Pass. If you are a foreigner who’s starting a small 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 would rather keep their names off the public records and documents of the company. 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 may not be in a position to be physically within Singapore to control the day-to-day operations of the company. 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: In case a business owner is looking to expand their business into new markets, they may desire to appoint a nominee director who has knowledge of the local market and will help the business navigate the neighborhood business environment.
Benefits of Using Nominee Director Services in Singapore
There are several benefits to using nominee director services in Singapore:
Compliance with local regulations: As mentioned earlier, every company in Singapore must have at least 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 value your privacy and want to keep your name off the public records and documents of your company, a nominee director will let you achieve this.
Facilitation of business operations: In case you are unable to be physically within 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 for as long or as short an interval as you need. This is often especially useful should you be testing the waters in a new market and are not sure how long you will need 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 act as a placeholder or for a brief period of time.