If you’re thinking about starting a business in Singapore, you may have heard of the term “nominee director.” But what exactly does this mean, and how do it benefit your organization? In this post, we’ll have a closer look at Singapore nominee director services and how they are able to help you reach your business goals.
Exactly what is a Nominee Director?
A nominee director is really a person or perhaps a company that is appointed to act as a director of a company on behalf of another person or entity. The nominee director does not have any executive power or authority within the business, but instead acts as a placeholder for the real director or owner of the company. Basically, the nominee director’s name appears on the official company records and documents, but they 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. Therefore 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 is starting a small business in Singapore, you may not meet these requirements, and for that reason, 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 public records and documents of the company. By appointing a nominee director, the business owner can maintain their anonymity while still having the ability to operate their business.
Facilitation of business operations: Sometimes, the business owner is probably not in a position to be physically present in Singapore to control the day-to-day operations of the company. By appointing a nominee director who’s locally based, the business owner can make sure 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 desire 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 benefits to using nominee director services in Singapore:
Compliance with local laws and regulations: As mentioned earlier, every company in Singapore must 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 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 will help you achieve this.
Facilitation of business operations: If you are unable to be physically present in Singapore to control your company’s operations, a nominee director might help ensure that your company complies with local regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you may appoint a nominee director for for as long or as short an interval as you need. This can be especially useful when you are testing the waters in a fresh market and are uncertain how long you will have 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 you to definitely become a placeholder or for a short period of time.