Singapore is a global hub for businesses, with its stable economy, business-friendly policies, and strategic location in Southeast Asia. However, starting a business in Singapore could be complex, especially for foreign entrepreneurs that are not familiar with the neighborhood laws and regulations. Among the common challenges faced by foreign businesses in Singapore may be the requirement to appoint a local director. This is where Singapore Nominee Director Services enter into play.
In this article, we shall discuss what Singapore Nominee Director Services are, how they work, and the huge benefits they are able to bring to your organization.
WHAT EXACTLY ARE Singapore Nominee Director Services?
A Singapore Nominee Director can be an individual or a corporate entity that’s appointed by a foreign company to do something as its local director in Singapore. The Nominee Director has no involvement in the day-to-day operations of the company, and the foreign company retains full control over its business operations. The Nominee Director’s role is bound to fulfilling the legal requirement of having a local director for the business.
The Nominee Director is normally appointed for one of two reasons: either the foreign company does not have an area resident director, or the foreign company’s director does not desire to be publicly defined as the director of the Singapore company.
How Do Singapore Nominee Director Services Work?
To activate Singapore Nominee Director Services, a foreign company must engage the services of a specialist service provider that offers Nominee Director services. The company will appoint a Nominee Director who meets the requirements of the Singapore Companies Act. The Nominee Director will then sign a Director’s Consent Letter, which confirms that the Nominee Director is ready to act as the neighborhood director of the business.
The foreign company will retain full control on the management and operations of the company. The Nominee Director will not be involved in any decision-making processes, and the foreign company’s director will continue to manage the business’s affairs remotely.
The Nominee Director’s role is to fulfill the legal requirement of having a local resident director for the company. nominee director fee provides their name and residential address to the Accounting and Corporate Regulatory Authority (ACRA) and other government agencies. The Nominee Director will also sign any legal documents required by the Singapore government, like the Annual General Meeting (AGM) resolutions and financial statements.
The Nominee Director’s appointment is usually for a fixed term, and the company will provide renewal services if the foreign company requires the Nominee Director’s services for a longer time.
Great things about Singapore Nominee Director Services
Singapore Nominee Director Services offer many perks to foreign businesses that are starting their operations in Singapore. A number of the key benefits include:
Compliance with Singapore regulations
Beneath the Singapore Companies Act, every Singapore company will need to have at least one local resident director. Engaging Singapore Nominee Director Services ensures that the foreign company complies with this legal requirement, that is essential for the business’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors might not desire to be publicly defined as the director of the Singapore company. Engaging a Nominee Director allows the foreign director to stay anonymous while fulfilling the legal requirement of having a local director.
Faster company incorporation
Engaging a Nominee Director can help speed up the procedure of incorporating a Singapore company. Since the Nominee Director meets the residency requirement, the foreign company can complete the registration process quickly and start its operations in Singapore without any delay.
Flexibility in managing the business
Engaging a Nominee Director provides foreign directors with an increase of flexibility in managing their Singapore company. Since the Nominee Director does not have any involvement in the business’s day-to-day operations, the foreign director can manage the company’s affairs remotely without any disruption